Core Viewpoint - Kyndryl's shares fell over 56% intra-day following the announcement of a delay in filing its December-quarter financial report due to material weaknesses in internal controls over financial reporting [1] Group 1: Financial Reporting Issues - The identified weaknesses in internal controls extend across the fiscal year ending March 2025 and the first two quarters of fiscal 2026 [2] - Kyndryl stated that it does not expect any impact on its balance sheets, income statements, cash flow statements, or equity statements despite the identified issues [2] Group 2: Executive Changes - Kyndryl announced several executive changes, including the departure of Chief Financial Officer David Wyshner and the appointment of Harsh Chugh as interim CFO [3] - Global Controller Vineet Khurana also stepped down, with Bhavna Doegar appointed as interim corporate controller [3] Group 3: Revenue Outlook - Kyndryl released its third-quarter results and lowered its revenue outlook for fiscal 2026 [4]

This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: Enterprise technology provider Kyndryl announced Monday  that its CFO, David Wyshner, and general counsel, Edward Sebold, have stepped down from their roles effective immediately. The company appointed Harsh Chugh as interim finance chief, Bhavna Doegar as interim corporate controller, and Mark Ringes as interim general counsel, according to a filing with the ...

This story was originally published on CFO.com. To receive daily news and insights, subscribe to our free daily CFO.com newsletter. The Trial Balance is CFO.com’s weekly preview of stories, stats and events to help you prepare. Part 1 — Kyndryl, an IT infrastructure services spin-off of IBM, says its CFO has departed, “effective immediately.” David Wyshner, the finance chief of IBM spin-off Kyndryl, is leaving his position as the company undertakes a review of its cash management practices, according to ...

Core Viewpoint - Ag Growth International (AGI) reported solid third-quarter results with year-over-year growth in revenue and adjusted EBITDA, despite facing challenges in the North American farm equipment market. The company is addressing internal control weaknesses related to financial reporting in Brazil while pursuing strategic initiatives to enhance profitable growth and operational excellence [2][4][6]. Financial Performance - AGI posted consolidated revenue of CAD 389 million, reflecting a 9% increase year over year. Adjusted EBITDA was CAD 71 million, a 4% rise from the previous year, while the adjusted EBITDA margin decreased to 18.2%, down approximately 100 basis points due to a shift towards commercial projects [3][6][10]. - The commercial segment, particularly driven by Brazil, remains the primary growth engine with an order book of about CAD 667 million, over 90% of which is commercial [5][11]. Operational Developments - The company launched a new business model and secured several large projects, which improved profitable growth but added complexity to financial reporting and audit reviews [1][4]. - Management emphasized the importance of enhancing internal controls and technical accounting knowledge to address identified weaknesses in Brazil's financial reporting processes [7][9]. Market Conditions - The North American farm market remains under pressure, with mixed regional performance. Brazil showed improvement, while the U.S. experienced a slight revenue decline, and Canada was described as broadly in line with the U.S. [12][13]. - Early feedback from AGI's annual early order program for portable grain handling equipment indicated that purchasing trends may reflect last year's weak performance, with ongoing uncertainty expected to persist into early 2026 [13]. Cash Flow and Leverage - AGI reported a net debt leverage ratio of 3.9x, attributed to temporary working capital investments for large projects, particularly in Brazil. Operating cash flow was strong, but free cash flow was impacted by additional project financing requirements [14][15]. - The company initiated a fund structure in Brazil to monetize long-term financing receivables tied to large commercial projects, with expectations of positive free cash flow once the fund is fully operational in 2026 [15][16]. Future Outlook - Management anticipates that fourth-quarter adjusted EBITDA will be lower sequentially and compared to the prior year due to challenging market conditions, negative mix, and higher SG&A costs [17][18].

Core Viewpoint - Organon & Co. experienced a significant drop in share price following the announcement of an investigation into improper sales practices and the resignation of CEO Kevin Ali, raising concerns about the company's internal controls and financial reporting [1][4]. Group 1: Company Investigation and Findings - An independent internal investigation revealed that certain wholesalers were encouraged to purchase more Nexplanon than needed, particularly at the end of 2022 and throughout 2024 and 2025, which helped Organon meet revenue expectations [4]. - The investigation led to the termination of the Head of U.S. Commercial & Government Affairs and the resignation of CEO Kevin Ali without severance or equity-related retirement benefits [4]. Group 2: Market Reaction and Legal Implications - Following the announcement, Organon's share price fell by $2.10, representing a 23% decrease, indicating severe market reaction to the news [1]. - Hagens Berman, a national shareholders rights firm, has initiated an investigation to determine if Organon and its former CEO misled investors regarding compliance with accounting rules and the effectiveness of internal controls [2][3].

Core Insights - Bragar Eagel & Squire, P.C. is investigating potential claims against Seritage Growth Properties (NYSE: SRG) on behalf of long-term stockholders following a class action complaint filed on July 1, 2024, concerning breaches of fiduciary duties by the board of directors [1][7] Company Developments - On August 14, 2023, Seritage disclosed a "material weakness" in its internal control over financial reporting, specifically regarding the identification of impairment indicators for real estate investments, leading to a stock price drop of $0.86 (9.67%) to $8.03 per share on August 15, 2023 [7] - On May 10, 2024, Seritage announced an adjustment in pricing projections for its assets, resulting in a gross value reduction of at least $325 million, causing the stock price to fall by $2.54 (27.3%) to $6.78 per share on May 13, 2024 [7] Legal Context - The class action complaint alleges that during the Class Period, Seritage's management made materially false and misleading statements and failed to disclose significant adverse facts about the company's operations and prospects, including ineffective internal controls and overstated asset values [7]

Core Viewpoint - America's Car-Mart, Inc. is working to complete omitted disclosures related to loan modifications for customers facing financial difficulties, which will be included in its Annual Report on Form 10-K for the fiscal year ended April 30, 2025 [1][3] Group 1: Disclosure Requirements - The company identified the need to include disclosures related to loan modifications in accordance with Financial Accounting Standards Board Accounting Standards Codification (ASC) 310-10-50-42 through 50-44 [3] - The company determined that its previously issued financial statements contain material omissions of required disclosures under these ASC provisions [3][4] Group 2: Specific Omissions - Required disclosures include qualitative and quantitative information about the types of modifications utilized, total period-end amortized cost basis of modified receivables, and the percentage of modifications made to debtors experiencing financial difficulty [4] - The financial effect of modifications by type, including changes to contractual terms and the incremental effect of principal forgiveness, was also omitted [4] - Performance of receivables in the 12 months following a modification for debtors experiencing financial difficulty was not disclosed [4] Group 3: Internal Control and Reporting - The company identified deficiencies in its internal control over financial reporting related to the omitted disclosures and expects to report material weaknesses in its Form 10-K [5] - Management determined that certain previously issued financial statements should no longer be relied upon due to the omission of loan modification information [6] - The affected periods include quarterly reports for fiscal years 2024 and 2025 through January 31, 2025, and the annual report for fiscal year 2024 [6] Group 4: Impact on Financial Statements - The additional disclosures required will not affect the accuracy of the company's previously reported financial results, including earnings, balance sheet, cash flows, or shareholder equity [7][9] - The company plans to report the omitted loan modification disclosures for the non-reliance periods in its Form 10-K [7] Group 5: Filing and Compliance - The company is working to complete the necessary disclosures and will file its Form 10-K as soon as practicable [8] - The company expects to receive a notice from Nasdaq regarding non-compliance with timely filing requirements, but does not anticipate an immediate effect on the listing or trading of its common stock [10] Group 6: Company Overview - America's Car-Mart operates automotive dealerships in 12 states and is one of the largest publicly held automotive retailers in the U.S., focusing on the "Integrated Auto Sales and Finance" segment of the used car market [11]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against SoundHound AI, Inc. due to a class action complaint alleging breaches of fiduciary duties by the board of directors during a specified class period [1] Summary by Relevant Sections Class Action Complaint - The complaint alleges that during the class period, SoundHound failed to disclose material weaknesses in its internal controls over financial reporting, which impaired its ability to account for corporate acquisitions [2] - It is claimed that SoundHound overstated its remediation efforts regarding these internal control weaknesses, leading to inflated reported goodwill following the Amelia Acquisition [2] - The complaint also indicates that SoundHound would require additional time and resources to account for the SYNQ3 and Amelia Acquisitions, increasing the risk of delayed financial report filings with the SEC [2] SEC Filing and Stock Impact - On March 4, 2025, SoundHound announced it would be unable to timely file its Annual Report for 2024, citing complexities in accounting for the SYNQ3 and Amelia Acquisitions and identified material weaknesses in internal controls [3] - Following this announcement, SoundHound's stock price fell by $0.61 per share, or 5.86%, closing at $9.72 per share [3]

Core Viewpoint - A class action securities lawsuit has been filed against Bitfarms Ltd. due to alleged securities fraud affecting investors between March 21, 2023, and December 9, 2024 [1] Group 1: Allegations and Financial Reporting Issues - The lawsuit claims that Bitfarms had inadequate internal controls over financial reporting [2] - It is alleged that the company misclassified proceeds from the sale of digital assets, categorizing them as cash flow from operating activities instead of investing activities [2] - The complaint also states that Bitfarms overstated its ability to remediate material weaknesses in its internal controls related to the classification of 2021 Warrants [2] - These errors led to misstatements in several previously issued financial statements, which are now deemed inaccurate and likely to require restatement [2] - Consequently, the company's public statements were materially false and misleading throughout the relevant period [2] Group 2: Legal Process and Participation - Investors who suffered losses in Bitfarms Ltd. during the specified timeframe have until July 8, 2025, to request appointment as lead plaintiff [3] - Participation in the lawsuit does not require serving as a lead plaintiff, and class members may be entitled to compensation without any out-of-pocket costs [3] Group 3: Firm Background - Levi & Korsinsky has a history of securing significant compensation for shareholders and has been recognized as one of the top securities litigation firms in the U.S. for seven consecutive years [4]

Core Viewpoint - A class action securities lawsuit has been filed against Bitfarms Ltd. alleging securities fraud affecting investors between March 21, 2023, and December 9, 2024 [1][2]. Group 1: Allegations and Financial Misstatements - The lawsuit claims that Bitfarms had inadequate internal controls over financial reporting [2]. - It is alleged that the company misclassified proceeds from the sale of digital assets, categorizing them as cash flow from operating activities instead of investing activities [2]. - The complaint states that Bitfarms overstated its ability to remediate material weaknesses in its internal controls related to the classification of 2021 Warrants [2]. - Due to these errors, various items in previously issued financial statements were misstated, leading to inaccuracies that may require restatement [2]. - The public statements made by the company were deemed materially false and misleading throughout the relevant period [2]. Group 2: Legal Process and Participation - Investors who suffered losses during the specified timeframe have until July 8, 2025, to request appointment as lead plaintiff [3]. - Participation in the lawsuit does not require serving as a lead plaintiff, and class members may be entitled to compensation without any out-of-pocket costs [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a history of securing significant settlements for shareholders and is recognized as one of the top securities litigation firms in the United States [4].