Results for: Inventory Issues

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.

SunPower has disclosed misstatements in its fiscal year 2022 results, leading to an anticipated $15-$25 million reduction in income from continuing operations. These misstatements include the improper capitalization of certain deferred costs and the misclassification of sales commissions as cost of revenue. The company had previously raised concerns about its ability to continue operating in December due to a delay in filing quarterly results and a breach of a key credit agreement. SunPower has not yet completed its review of the fiscal 2022 results and acknowledges the possibility of further errors being identified.