Results for: Going Concern

SunPower Corporation (SPWR) has disclosed misstatements in its audited financial statements, leading to a multiyear low in its stock price. The company plans to restate nearly two years of results, primarily due to incorrect capitalization of deferred costs and misclassification of sales commissions. The revisions are expected to reduce 2022 and 2023 income from continuing operations by $15 million to $25 million. SunPower also raised concerns about its ability to continue as a going concern, potentially impacting its loan agreements.

SunPower, a solar energy provider, disclosed misstatements in its 2022 financial results. These errors led to an anticipated $15 million to $25 million reduction in pre-tax income. The misstatements involve improper capitalization of deferred expenses and incorrect classification of sales commissions. SunPower previously raised concerns about its ability to operate as a going concern, citing a potential credit agreement breach due to delayed financial reporting caused by inventory issues. The company’s ongoing financial review raises the possibility of further errors.