Perma-Pipe International Holdings Reports Error in Financial Statements, Will Restate 8-K Filing

Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) disclosed in an 8-K filing with the Securities and Exchange Commission that its unaudited consolidated financial statements for the six months ended July 31, 2024, should no longer be relied upon due to identified errors. The errors were identified by the Audit Committee in collaboration with the Company’s management and its independent registered public accounting firm.

The errors stemmed from a subsidiary in the Middle East incorrectly recording a duplicate invoice during the three months ended April 30, 2024, related to the acquisition of property, plant, and equipment. This led to an overstatement of PP&E and trade accounts payable by $1.4 million on the unaudited consolidated balance sheet, impacting net cash flows as well. The Company also noted discrepancies in handling certain intercompany transactions in the Middle East, resulting in further errors in the financial statements.

These discrepancies included an overstatement of trade accounts receivable by $0.4 million, an understatement of net cash flows provided by operating activities by $0.4 million, and an overstatement of net cash used in investing activities by $0.5 million. These errors have prompted management to enhance the disclosure of existing material weaknesses in internal control over financial reporting.

The Company intends to rectify these errors by filing an amended Quarterly Report on Form 10-Q as soon as possible. Perma-Pipe International Holdings also highlighted in its filing that all forward-looking statements included should be taken as projections and forecasts subject to known and unknown risks and uncertainties.

Investors are advised not to solely rely on these forward-looking statements as they may not accurately reflect the Company’s future outcomes. As of the date of this filing, Perma-Pipe International Holdings disclaims any intention to update or revise any forward-looking information unless required by applicable securities laws.

Matthew E. Lewicki, Vice President, and Chief Financial Officer, duly signed the report on behalf of Perma-Pipe International Holdings, Inc., as per the requirements of the Securities Exchange Act of 1934. The Company remains committed to addressing the identified issues and ensuring accuracy and transparency in its financial reporting going forward.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Perma-Pipe International’s 8K filing here.

About Perma-Pipe International

Perma-Pipe International Holdings, Inc, together with its subsidiaries, engineers, designs, manufactures, and sells specialty piping and leak detection systems. It offers insulated and jacketed district heating and cooling piping systems for energy distribution from central energy plants to various locations; and primary and secondary containment piping systems for transporting chemicals, hazardous fluids, and petroleum products, as well as engages in the coating and insulation of oil and gas gathering and transmission pipelines.