Brownie's Marine Group Restates Q2 2026 Financials

What Happened

• On August 14, 2026, Brownie’s Marine Group, Inc.’s Board, with management, determined that the unaudited consolidated financial statements in the Form 10-Q for the quarter and six months ended June 30, 2026 (filed August 4, 2026) should no longer be relied upon because accounting and reporting errors were identified after filing.
• The principal error was use of financial information from an incorrect reporting year for the three months ended June 30, 2026, producing misstated quarterly results. Management identified the issue in its internal review, and the Company intends to file an amended Form 10-Q to restate the affected financial statements and disclosures. Independent auditor Bush & Associates, CPA has been informed and concurs with management’s conclusion.

Key Details

• Date of Board determination: August 14, 2026; original Form 10-Q filed August 4, 2026.
• Corrected results for the three months ended June 30, 2026: operating loss reported as $(151,080) corrected to operating income of $22,716.
• Corrected net income for the period: previously reported $580,542, corrected to $218,658.
• Other corrections: out-of-period related‑party interest adjustment (recorded in 2026 but should have been accrued beginning in 2023; management deems this not material) and corrections to the equity roll forward for 2025–2026.
• The Company has previously identified material weaknesses in internal control over financial reporting and says period‑end close and reconciliation deficiencies contributed to the errors. Remediation steps include strengthened reviews, improved close/reconciliation procedures, AI-assisted analytical testing, and changes to financial reporting personnel and controls.

Why It Matters

• Investors should not rely on the originally filed Q2 2026 quarterly results until the Company files the amended Form 10-Q. The restatement materially changes reported quarterly operating and net income figures and can affect comparisons to prior periods and any metrics or decisions based on the original filing.
• The notice highlights weaknesses in the Company’s internal controls and ongoing remediation; while steps are underway, the Company warns there is no assurance the measures will fully prevent future misstatements.