SUGARMADE, INC. (OTCMKTS:SGMD) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim ReviewItem 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
On August 14, 2018, the management of Sugarmade, Inc. (the “Company”) concluded the Company’s previously issued financial statements filed on August 3, 2018 on Form 10-Q for the third fiscal quarter period ending March 31, 2018 (the “Restated Periods”), should no longer be relied upon due to the misclassification of an expense for the nine-month period ending March 31, 2018. Thus, the Company is filing Form 10-Q/A Amendment No. 1, restating selected financial reports as described herein and within Form 10-Q/A Amendment No. 1.
The restatement was caused by a clerical error where a previous version of financial statements was not removed and replaced with an updated version. Specifically, relative to the Consolidated Statement of Operations for the nine-month period ending on March 31, 2018, there was a misclassification of data against the Company’s three-month look back which caused the nine-month look back to have to be restated. The Company plans to file Form 10-Q/A Amendment No. 1 to correct the clerical error described above and to restate selected financial reports.
FORWARD-LOOKING STATEMENTS: This filing contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "would," "could," "will" and other words of similar meaning in connection with a discussion of future operating or financial performance. Examples of forward looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.
About SUGARMADE, INC. (OTCMKTS:SGMD)
Sugarmade, Inc. is engaged in the supply of products to the quick service restaurant sub-sector of the restaurant industry. The Company is a distributor of paper products derived from non-wood sources. As of June 30, 2015, the Company’s operating unit, CarryOutSupplies.com, which is a producer and wholesaler of custom printed and generic takeout supplies served more than 3,000 quick service restaurants. It conducts its operations in an industry segment, including paper and paper-based products, such as paper cups, cup lids, food containers and others. Its products also include double poly paper cups for cold beverage, yogurt cups, ice cream cups, soup containers and plastic spoons. It is a manufacturer and distributor of tree free copy and printer paper products, made from sugarcane waste (bagasse) and bamboo for home and office environments under the Sugarmade brand name. It has also acquired a minority stake in various patents and products for seasoning and spices for food items.