Boston Omaha Company Announces Plans to Restate 2020 Money Statements Thanks to Variations in Accounting for Yellowstone Acquisition Firm
– No Substance Adjust Predicted in the Outcomes of Functions for Boston Omaha Corporation’s Core Enterprises and Investments (other than Yellowstone Acquisition Enterprise)
– To Restate 2020 Financial Statements to Contain Yellowstone Acquisition Firm Fiscal Statements in Consolidated Money Statements and Integrate Improvements in Accounting for Yellowstone Warrants Subsequent Modern Assertion on Accounting for Warrants in SPACs
Boston Omaha Company (NASDAQ: BOMN) (“Boston Omaha” or the “Organization”) now declared it will restate its economical statements contained in its Yearly Report on Kind 10-K for the calendar year ended December 31, 2020 (the “Once-a-year Report”). The Organization a short while ago reassessed its prior accounting of Yellowstone Acquisition Company (“Yellowstone”), a specific objective acquisition corporation (“SPAC”) sponsored by the Company. The Enterprise and its Audit Committee in discussion with its auditor, KPMG, have reevaluated this sort of accounting and made a decision to restate its Yearly Report to consolidate the money statements of Yellowstone and to account for the Yellowstone public and private warrants in accordance with the current statements (the “Assertion”) by the Securities and Trade Fee (the “SEC”). Additional time is necessary to enable the Corporation to consist of the economical statements of Yellowstone in the Company’s fiscal statements for the calendar year ended December 31, 2020.
NO Product Transform IS Expected IN THE Company’S Outcomes OF Functions FOR ITS Core Running Corporations (BILLBOARDS, Insurance AND BROADBAND Products and services) AND ITS OTHER INVESTMENTS FOR THE Calendar year Finished DECEMBER 31, 2020. AS YELLOWSTONE Concluded ITS IPO IN Oct 2020, THE RESTATEMENT DOES NOT Influence THE Organization’S QUARTERLY Studies ON Kind 10-Q FOR THE Intervals PRIOR TO October 2020 OR ANY Before AUDITED Economic STATEMENTS.
Notwithstanding the perseverance to consolidate Yellowstone’s financials, all cash elevated in Yellowstone’s preliminary community offering remain in belief for the benefit of Yellowstone and its shareholders until this sort of time as those cash are either returned to Yellowstone shareholders or Yellowstone completes a prosperous organization combination, in which event all this kind of money held in believe in will be transferred to the company combining with Yellowstone. In any function, the Firm anticipates that Yellowstone’s inclusion in the Firm’s economic statements on a likely-forward basis will mirror the duration of Yellowstone as an entity, which is constrained presented the shorter existence span of SPACs.
Due to the restatement, the Company’s audited consolidated economic statements as of and for the 12 months ended December 31, 2020 (the “Yellowstone Non-Reliance Period of time”) bundled in the Annual Report submitted with the SEC must no longer be relied upon because of to the absence of consolidated economic statements of Yellowstone inside of the money statements of the Organization for the period of time from the day of the Yellowstone IPO in Oct 2020 by way of December 31, 2020 and to account for the Yellowstone public and personal warrants in accordance with the the latest SEC Assertion. As a result, the Once-a-year Report will require a restatement to integrate the consolidation and to account for the Yellowstone public and non-public warrants. Similarly, any previously issued or submitted stories, push releases, earnings releases, and investor shows or other communications describing the Company’s consolidated economic statements and other related economical information and facts masking the Yellowstone Restatement Period of time ought to no extended be relied upon due to the absence of consolidated economical statements of Yellowstone and the accounting of the Yellowstone general public and non-public warrants.
The Corporation intends to restate the consolidated economical statements for the yr ending December 31, 2020 to mirror the inclusion of the Yellowstone money outcomes as soon as practicable. Due to the needed restatement of the Yearly Report, the Enterprise was not able to file its Kind 10-Q for the quarter finished March 31, 2021 by the Might 17, 2021 deadline, but has filed a Sort 12b-25, is operating diligently to finalize the restated money statements, and to file its Quarterly Report on Type 10-Q for the quarter finished March 31, 2021 by the deadline extension of May possibly 24, 2021.
The Firm is at the moment deciding the actual amounts and complete result of not including the Yellowstone economic statements in the Company’s consolidated fiscal statements masking the Yellowstone Non-Reliance Time period and the influence of the accounting for the Yellowstone general public and personal warrants. Accordingly, buyers and others need to count only on fiscal information and other disclosures with regards to the Yellowstone Non-Reliance Time period once the Company restates its consolidated fiscal statements for the Yellowstone Non-Reliance Period of time and not rely on any beforehand issued or submitted earnings press releases, trader shows or other communications associated thereto covering the Yellowstone Non-Reliance Period. Perseverance of the influence of the restatement products described previously mentioned are subject to ongoing examination by administration and could change based on further overview and analysis. The Company’s inside evaluation is ongoing and, despite the fact that not anticipated, the Enterprise may perhaps determine even more merchandise demanding restatement. As a end result, there can be no assurance that the real consequences of the restatements will be only as described over.
Administration is assessing the result of the restatement on the Company’s internal management above economical reporting and its disclosure controls and processes. The Corporation expects to report at minimum one content weakness following completion of its analysis of the cause of these restatements relating to the accounting for the Yellowstone public and non-public warrants and the accounting for the consolidation of Yellowstone. A material weak spot is a deficiency, or a mix of deficiencies, in inside command over money reporting, this kind of that there is a fair chance that a material misstatement of a company’s yearly or interim money statements will not be prevented or detected on a well timed basis. The existence of a person or extra substance weaknesses precludes a summary by administration that the Company’s disclosure controls and processes and inner regulate about economical reporting are efficient. As a result of the substance weakness involving the non-consolidation of the Yellowstone economical statements and the accounting for the Yellowstone general public and non-public warrants the Firm thinks its internal handle around money reporting for these precise products was not productive as of December 31, 2020 and its disclosure controls and methods had been not efficient for the Yellowstone Non-Reliance Period. The Firm options to apply steps to remediate the discovered materials weaknesses shortly soon after the filing of the Sort 10-Q for the quarter ended March 31, 2021.
The Company’s administration and the Audit Committee have reviewed the issues disclosed in Product 4.02 of its Form 8-K submitted currently with the SEC asserting the will need to restate the Company’s financial statements, as explained earlier mentioned, with the Company’s unbiased registered accounting agency, KPMG LLP.
About Boston Omaha Corporation
Boston Omaha Company is a general public keeping business with a few bulk owned firms engaged in outdoor promotion, surety insurance coverage and broadband telecommunications solutions. The Enterprise also maintains minority investments which includes investments in a bank, a nationwide household homebuilder, business serious estate providers companies and Yellowstone Acquisition Firm.
Ahead-Searching Statements
Ahead-On the lookout Statements: This push release consists of “ahead-wanting” statements. All statements other than statements of historical point are statements that could be considered ahead-seeking statements. The Company advises caution in reliance on forward-wanting statements. Forward-wanting statements consist of, with no limitation, the Company’s options similar to restatement of the consolidated economical statements as of and for the 12 months finished December 31, 2020 and the Company’s estimates similar to the items requiring restatement bundled in the consolidated economical statements covering the Yellowstone Non-Reliance Period. These statements involve recognised and unfamiliar pitfalls, uncertainties and other components that could result in actual effects to vary materially from these implied by ahead-hunting statements, which includes the final result of the Company’s completion of the quantification and analysis of the particular affect of the absence of Yellowstone economical statements in the Company’s fiscal success and beforehand issued economical statements, which include the probability of content adjustments thereto the discovery of more and unanticipated information and facts for the duration of the procedures expected to be concluded ahead of the Organization is able to file its necessary experiences and the application of accounting or tax rules in an unanticipated manner. See also further possibility factors set forth in the Company’s periodic filings with the SEC, like, but not constrained to, all those risks and uncertainties outlined in the area entitled “Possibility Things,” in the Company’s Yearly Report on Sort 10-K submitted with the SEC on March 29, 2021. All forward-looking statements in this Existing Report on Type 8-K are based on info accessible to the Business as of the date of this submitting. The Company expressly disclaims any obligation to update or alter its ahead-looking statements, whether as a result of new info, foreseeable future events or if not, apart from as demanded by applicable law.
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Contacts
Boston Omaha Company
Catherine Vaughan
617-875-8911
[email protected]