Schwazze (OTC:SHWZ), a Colorado-based cannabis company, announced it would restate its financial statements for FY 2022/23 and Q1-Q3 2023 to address several accounting errors.
Schwazze’s accounting issues included errors with preferred shares, operating leases and inventory valuations. Although management assured investors that key metrics like revenue and Adjusted EBITDA remained unaffected, the incident highlights how small mistakes can escalate.
