Wed, Sep 11, 6:48 PM (100 days ago)
StartEngine Crowdfunding, Inc. (the "Company") filed an amendment to its annual report (Form 10-K/A) for the fiscal year ended December 31, 2023, primarily to address disclosures related to its subsidiary, StartEngine Private LLC, and to restate its financial statements due to errors in previously reported figures. For FY 2023, the Company reported revenues of $23,386,000, a decrease of 3% from $24,055,000 in 2022. Operating expenses rose to $31,135,000, up 24% from $25,103,000, leading to a net loss of $16,375,000 compared to a loss of $7,974,000 in the prior year. The restatement affected prior financials for 2022 and 2021, correcting various asset valuations and liabilities. The Company also acquired SeedInvest assets, impacting its intangible assets, which rose to $21,892,000. The stock split on May 6, 2024, adjusted authorized shares significantly. The Company faces ongoing risks from market conditions and regulatory changes. Management acknowledges weaknesses in internal controls, prompting remediation efforts.