The tattooed chef will correct some expenses from previous reporting periods to resolve technical accounting issues


Tattooed chef inc.

PARAMOUNT, Calif., Oct. 12, 2022 (GLOBE NEWSWIRE) — Tattooed Chef, Inc. (Nasdaq: TTCF) (“Tattooed Chef” or the “Company”), a leader in plant-based foods, today announced that it will restate its quarterly and annual financial statements for 2021, as well as its quarterly financial statements for the first and second quarter periods of 2022.

On October 6, 2022, the Company received written notice from its former independent registered public accounting firm, BDO USA, LLP, that the Company’s annual consolidated financial statements for the year ended December 31, 2021 and accompanying audit report, together with the unaudited condensed interim financial statements the consolidated financial statements for the three months ended March 31, 2021, June 30, 2021 and September 30, 2021, each as previously filed with the Securities and Exchange Commission (“SEC”), were materially misstated and should no longer be relied upon and should be restated, because the Company incorrectly recorded expenses related to a multi-vendor broadcast program with a large client as operating rather than as a reduction in revenue, and advertising placement expenditures by a marketing services company on a straight-line basis over the life of the co date rather than when the services were actually rendered. The corrections do not affect the Company’s cash position. In addition, the Company expects the restatements to have no effect on its current and future operations.

For the reasons set forth above, the Board, after consultation with the Audit Committee, has also determined that the Company’s unaudited condensed interim financial statements for the quarters ended March 31, 2022 and June 30, 2022 should no longer be invoked.

The Company intends to restate the audited and unaudited consolidated financial statements for the periods identified above. The Company expects to file the restated consolidated financial statements with the SEC no later than the filing of the Company’s report on Form 10-Q for the quarterly period ended September 30, 2022.

The restatements should result in the following adjustments to the periods identified above:

  • A decrease in net revenue and gross margin between approximately $0 million and $5 million, depending on the period.

  • Operating expenses, ranging from an expected decrease of approximately $4 million to an expected increase of approximately $1 million, depending on the period; and net loss, ranging from an expected decrease of approximately $1 million to an expected increase of approximately $4 million, depending on the period.

  • For the six months ended June 30, 2022, net revenue is expected to decrease by approximately $5 million to approximately $125 million, primarily due to the above noted record of expenses related to a multi-vendor mailing program , a $5 million decrease in gross profit, a $1 million decrease in operating expenses and a $4 million increase in net loss.

At this time, the Company has not fully completed its review and the expected financial impact of the restatements described above is preliminary and subject to change. The Company cannot predict whether additional periods beyond those mentioned above will be affected and the ultimate outcome or timing of the Company’s filing of restated financial statements for the annual and quarterly periods affected.

The Company today files with the SEC a Form 8-K relating to the restatements that will include related disclosures and estimated impacts for each of the periods subject to the restatement, a copy of which is available free of charge at www.sec.gov.

About the tattooed chef
Tattooed Chef is a leading plant-based food company that offers a broad portfolio of innovative and sustainably sourced plant-based foods. Tattooed Chef’s signature products include ready-to-bake bowls, zucchini spirals, cauliflower rice, acai and smoothie bowls, cauliflower pizza crusts, plant-based pizzas with wood-fired, hand-held burritos, quesadillas and Mexican dishes, which are available in the frozen food sections of major grocery stores and national retail clubs across the United States as well as on the e-commerce site of Tattooed Chef. Understanding consumer lifestyle and food trends, a commitment to innovation and self-manufacturing allow Tattooed Chef to continually introduce new products. Tattooed Chef offers affordable, tasty, and chef-created products to the growing group of plant-based consumers as well as the mainstream market. For more information, visit www.tattooedchef.com​.

Follow us on social networks: Facebook, Instagram, TikTok, Twitter and LinkedIn and Taste the Jams on Spotify.

Forward-looking statements
This notice contains forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) about us and other matters. These statements may discuss objectives, intentions and expectations regarding future plans or events, based on management’s current beliefs, as well as assumptions made by management and information currently available to management. Forward-looking statements may be accompanied by words such as “will”, “expect”, “anticipate”, “accretive”, “opportunity”, “expand”, “potential” or similar words, phrases or expressions. These forward-looking statements are subject to various risks and uncertainties, many of which are beyond our control. We caution readers not to place undue reliance on forward-looking statements.

INVESTORS

Stéphanie Dieckmann, Chief Financial Officer
tattooed cook
(562) 602-0822

Devin Sullivan, Senior Vice President
Equity Group Inc.
(212) 836-9608
[email protected]

David Shayne, Analyst
Equity Group Inc.
(212) 836-9628
[email protected]

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