New York-based marijuana multistate operator Curaleaf Holdings will adjust its revenue for 2022 and 2021 after it restates some of its previously issued financial statements.
The company’s previously reported revenue of $1.2 billion for 2021 will be reduced by approximately 1.25%, according to a news release.
And its adjusted revenue for 2022 will be an estimated $1.3 billion, with fourth-quarter revenue of roughly $352 million.
Curaleaf delayed reporting its fourth-quarter or full-year financial results in March because the company is converting its financials from International Financial Reporting Standards (IFRS) to U.S. generally accepted accounting principles (GAAP).
After reviewing the timing of wholesale purchases and sales in the last quarter of 2021 and the first half of 2022, the company determined that some previously reported revenue wasn’t appropriate.
Curaleaf plans to make adjustments to its fourth-quarter results from 2021 as well as the first three quarters of 2022.
The cannabis industry has been seeing a disproportionate number of restated financial results.
Federal prohibition has prevented large accounting firms from servicing the industry.
And there are marijuana-specific intricacies to reporting financials such as rapidly moving inventory and Section 280E of the federal tax code.
According to its release, Curaleaf has upgraded its procedures and controls and will continue to do so.
“We are committed to accurate and transparent financial reporting,” Chief Financial Officer Ed Kremer said in a statement.
Curaleaf said it will file its full-year results by May 1.