SOLESENCE, INC. Restates Financials Over Inventory Accounting Errors

What Happened Solésence, Inc. announced on August 21, 2026 (Audit Committee/Board decision dated August 17, 2026) that it identified errors in historical inventory accounting and concluded that previously issued consolidated financial statements through March 31, 2026 should no longer be relied upon. The company found that labor and overhead costs were allocated to raw materials, work‑in‑process and finished goods using unsupported, budget‑based methods that did not comply with ASC 330 (Inventory). As a result, inventories were overstated and cost of revenue — and therefore gross profit, operating income (loss), income (loss) before taxes, net income (loss), basic and diluted EPS, accumulated deficit and total stockholders’ equity — were misstated for the affected periods.

Key Details

• Date of board determination: August 17, 2026; Form 8‑K filed August 21, 2026.
• Affected periods: consolidated financial statements as of and for Dec 31, 2023; and quarters ended Mar 31, Jun 30, Sep 30, Dec 31 (2024); Mar 31, Jun 30, Sep 30, Dec 31 (2025); and Mar 31, 2026.
• Planned filings: amendments to Form 10‑K for years ended Dec 31, 2023, 2024 and 2025, and amendments to Form 10‑Q for the listed quarters will be filed in the coming weeks.
• The company determined corrections using its general ledger, inventory detail, cost‑pool and burden‑rate schedules, roll‑forwards and internal inventory‑cost model, and discussed the matter with its independent accountant.

Why It Matters For investors, this means Solésence’s prior reported financial results for multiple quarters and years are unreliable until the company posts restated financials. Key measures investors watch — inventory balances, cost of revenue, gross profit, net income and EPS — will be revised, which could affect trend analysis, valuations and any comparisons that rely on historical figures. The company will publish amended reports soon; investors should review the restated filings once available to understand the magnitude of the adjustments.