Ka-Ching! Schwazze’s Cannabis Accounting Bloopers And Other Historic Missteps That Shook Up Big Business
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.
In May, Schwazze replaced its auditor after the SEC flagged previous audit failures, mostly related to balance sheet reclassifications. This case underscores the importance of accurate accounting, especially in the highly scrutinized cannabis industry.
While Schwazze’s issue may seem minor compared to past scandals, it serves as a reminder of how easily financial mistakes can spiral. Just consider the following infamous accounting blunders.
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