GlobalTech Corp: non-reliance on prior financial statements, $8,400,000

What happened

• On Sep 29, 2026 the Audit Committee of GlobalTech Corp concluded, after discussion with management and its independent registered public accounting firm Zahid Jamil & Co (“Zahid”), that previously issued financial statements contained material errors and should be restated.
• The affected filings are the audited consolidated financial statements for the year ended Dec 31, 2025 (Form 10-K filed Mar 31, 2026) and the unaudited condensed consolidated financial statements for the three months ended Mar 31, 2026 (Form 10-Q filed May 15, 2026) and for the three and six months ended Jun 30, 2026 (Form 10-Q filed Aug 13, 2026).
• The error relates to accounting for the realizability of deferred tax assets under ASC 740 and requires an additional valuation allowance of approximately $8,400,000 as of Dec 31, 2025.

Key details

• The adjustment will increase the Company’s total valuation allowance as of Dec 31, 2025 to $11,770,000 and will reduce the deferred tax asset to zero; a deferred tax liability of $5,760,000 will be presented as a non-current liability.
• Balance sheet effects expected in the amended Form 10-K for year ended Dec 31, 2025: total assets from $103,150,000 to $100,500,000; total liabilities from $63,310,000 to $69,070,000; total shareholders’ equity from $39,830,000 to $31,430,000; accumulated deficit from $39,820,000 to $44,460,000; non-controlling interest from $60,120,000 to $56,350,000.
• Income statement effects expected: tax expense from $290,000 to $8,690,000; loss after taxation from $3,150,000 to $11,550,000; comprehensive loss from $2,110,000 to $10,510,000; basic and diluted loss per share from $(0.01) to $(0.04).
• The company plans to file amended Form 10-K/A for the year ended Dec 31, 2025 and amended Form 10-Q/A for the quarters ended Mar 31, 2026 and Jun 30, 2026, will restate comparative periods, and reported that management identified additional material weaknesses in internal control over financial reporting as of Dec 31, 2025 and that disclosure controls and procedures were not effective as of that date.

Why it may matter

• This Current Report on Form 8-K reports Item 4.02: non-reliance on previously issued financial statements or a related audit report or completed interim review, which covers the company’s determination that prior financial statements should be restated and related internal control disclosures. A filing does not show why the insider traded or why the company acted.