YOUNGEVITY INTERNATIONAL, INC. (OTCMKTS:YGYI) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
ME Staff 8-k
YOUNGEVITY INTERNATIONAL, INC. (OTCMKTS:YGYI) 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 9, 2017, Youngevity International, Inc. (the “Company”) and the Audit Committee of the Company concluded that the Company’s Consolidated Statements of Cash Flows contained in its Annual Report on Form 10-K for the year ended December 31, 2016 and its quarterly reports on Form 10-Q for the quarters ended March 31, 2016, June 30, 2016, September 30, 2016 and March 31, 2017 should not be relied upon due to an error in the presentation of cash flow activity under the Company’s factoring facility.
The Company intends to restate the Consolidated Statement of Cash Flows for the year ended December 31, 2016 previously filed by the Company in its Annual Report on Form 10-K for the year ended December 31, 2016 as well as the interim Consolidated Statements of Cash Flows for the quarters ended March 31, 2016, June30, 2016 and September30, 2016, previously filed by the Company in its quarterly reports on Form 10-Q for the same periods, in an amendment to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “Form 10-K/A”). Based on the information regarding the affected periods in 2016 that the Company intends to include in its Form 10-K/A, the Company does not intend to file amendments to its quarterly reports on Form 10-Q for such periods at this time. The Company also intends to restate the Consolidated Statement of Cash Flows previously filed in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 in an amendment to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017.
The restatement adjustments, which will correct an error in the presentation of cash flow activity under the Company’s factoring facility to properly reflect net borrowings and net payments, are anticipated to decrease net cash provided by operating activities in the Consolidated Statements of Cash Flows and increase net cash provided by financing activities, except for the quarter ended March 31, 2016, it is anticipated to increase net cash provided by operating activities and increase net cash used in financing activities. There was no impact to the net increase or decrease in cash or cash balances. There was also no impact to the Consolidated Balance Sheets and Consolidated Statements of Operations.
to this Item 4.02(a), the Company's management and Audit Committee have discussed the matters disclosed in this Current Report on Form 8-K with the Company's independent registered public accounting firm, Mayer Hoffman McCann P.C.
About YOUNGEVITY INTERNATIONAL, INC. (OTCMKTS:YGYI) Youngevity International, Inc. is an e-commerce company. The Company operates through two segments: the direct selling segment where products are offered through a global distribution network of customers and distributors, and the commercial coffee segment where products are sold directly to businesses. The Company offers over 2,500 products to support a healthy lifestyle. All of these products, which are sold through its direct selling network, are categorized into over 11 sub-product lines. In the direct selling segment, the Company sells health and wellness, beauty product and skin care, scrap booking and story booking items, and packaged food products on a global basis, and offers a range of products through an international direct selling network. The Company is engaged in the commercial sale of coffee through its subsidiary CLR Roasters, LLC (CLR) and its subsidiary. Its brands include Cafe La Rica, Javalution Daily Grind, Javalution Royal Roast, SOZO Global and Integris.