The marijuana industry has an accounting problem, with a number of companies correcting errors in financial statements in recent years through restatements.
Restating financial results is a rare occurrence for most public companies: 2020 had the lowest number of financial restatements by public companies in the past 20 years with only 364, according to a report by Massachusetts-based Audit Analytics.
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But a disproportionate number of them have come from the cannabis industry over the past few years, making it harder for investors to gauge the financial health of a company.
Restatements also can lead to potentially costly class action lawsuits.
In the case of the marijuana industry, the restatements have included high-profile companies:
Florida-based multistate operator Jushi Holdings in September said it filed restated financial results for this year’s first quarter. Chicago-headquartered MSO Verano Holdings announced in July it would restate five quarters of financial results. KushCo
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