Princeton Capital Corporation to Restate Financial Statements Due to Reporting Errors

Princeton Capital Corporation (OTCMKTS:PIAC) announced on January 14, 2025, that the Audit Committee has determined the need to restate previously issued audited financial statements for the year ended December 31, 2023. The decision came after discussions with the company’s management and WithumSmith&Brown, PC.

The restatement primarily pertains to inaccurate summarized financial information for Advantis Certified Staffing Solutions, Inc., a significant unconsolidated subsidiary of Princeton Capital Corporation during the specified period. The identified errors, as stated in Note 10 of the 2023 Form 10-K filing, impact the balance sheet and income statement of Advantis.

Regarding the balance sheet, the errors involve the omission of an adjusting journal entry resulting in misrepresented current assets and liabilities. Similarly, inaccuracies in net revenue, gross profit, and net income were highlighted in the income statement. These errors were due to including intercompany transactions that should have been eliminated for consolidated presentation.

Investors are advised not to rely on the previously released financial statements for the specific period in question. The identified errors are anticipated to reduce the initially reported net income for Advantis from $3.1 million to approximately $0.5 million for the year ended December 31, 2023.

While the review process is ongoing, the exact financial impact remains preliminary and subject to potential modifications. Princeton Capital intends to submit an amended Form 10-K/A for the fiscal year in question promptly upon completion of the revision.

It is crucial to note that these corrections will not affect the valuation of the company’s portfolio, cash flow, revenues, or liquidity. The Audit Committee has engaged WithumSmith, the independent registered public accounting firm, in discussions regarding the matters disclosed in the Current Report on Form 8-K.

Princeton Capital Corporation, led by Chief Financial Officer Gregory J. Cannella, is diligently working towards rectifying the identified errors. The company is committed to providing accurate and transparent financial information to its stakeholders and will ensure compliance with regulatory standards moving forward.

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

About Princeton Capital

Princeton Capital Corporation is a business development company specializing in the private equity investments. The fund specializes in making investments in lower middle market in form of mezzanine, mezzanine debt, first lien loans, second lien loans, notes, bonds, subordinated debt, leverage buyouts, add on acquisitions, recapitalization, refinancings, growth financing and debt financing investments.