Wed, Jan 15, 10:29 PM (30 days ago)
Phunware, Inc. (PHUN) filed Amendment No. 1 to its Form 10-K for the fiscal year ending December 31, 2023, primarily to address risk factors related to its digital assets, PhunCoin and PhunToken. The amendment highlights a material weakness in internal controls over financial reporting, leading management to conclude that their disclosure controls were ineffective as of the reporting date. The company faces regulatory uncertainty regarding the classification of its digital assets as "securities," which could impose significant compliance burdens and impact financial reporting. The amendment does not alter previously reported financial results but underscores the risks associated with potential regulatory scrutiny. Management's commitment to improving internal controls was reiterated, though they cautioned that there are no guarantees of success. The market value of Phunware's voting stock was approximately $100.67 million as of June 30, 2023, with 20.17 million shares outstanding as of January 14, 2025. This amendment serves as a critical update for stakeholders regarding potential impacts on the company's financial condition and operational strategies.