NEW YORK, April 4, 2024 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ: KPLT). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Katapult and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On April 2, 2024, after the market closed, Katapult filed a Current Report on Form 8-K with the United States Securities and Exchange Commission revealing that, on April 1, 2024, during the preparation of the Company’s consolidated financial statements for the year ended December 31, 2023, it was determined that the Katapult’s revenue, sales tax payable, depreciation expense included in cost of revenue and property held for lease were materially misstated in certain prior periods. The Company’s conclusion was based on management’s determination that it miscalculated its sales tax payable related to certain leases and depreciation expense included in costs of revenue for certain leases originated on or before December 31, 2022. Katapult performed an assessment of its sales tax liabilities across all jurisdictions for potential additional exposure and, as a result of the assessment, the Company determined that it had not recorded a sales tax accrual for certain customer payments resulting in an understatement of sales tax payable and overstatement of rental revenue.
In addition, depreciation expense for certain leases originated on or before December 31, 2022 was not included in cost of revenue and was previously recorded as an out-of-period adjustment to the Company’s results for the year ended December 31, 2023. As a result of the foregoing determination, Katapult indicated that the Company’s previously issued financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2022, the Company’s unaudited condensed consolidated financial statements included in the Quarterly Reports on Form 10-Q for the quarterly periods within that year, as well as the unaudited condensed consolidated financial statements included in the Quarterly Reports on Form 10-Q for the quarterly periods within the year ended December 31, 2023, and the Company’s full year 2023 earnings release on Form 8-K filed March 14, 2024, should no longer be relied upon and will be restated.
On this news, Katapult’s stock price fell $0.60 per share, or 5.47%, to close at $10.36 per share on April 3, 2024.
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SOURCE Pomerantz LLP