Solar company Sunpower flags issues with financial reporting

By Thomson Reuters Apr 23, 2024 | 9:10 AM

(Reuters) – SunPower has identified misstatements in its results for fiscal year 2022, the U.S. solar power storage and energy service provider said in a regulatory filing on Tuesday.

It expects a $15 million to $25 million decrease in income from continuing operations before income taxes and some other adjustments for the year ended Jan. 1, 2023.

The misstatements relate to capitalization of certain deferred costs and wrongly classified sales commissions as cost of revenue, among other things.

The company had raised doubts over its ability to continue as a going concern in December, saying a breach of a key credit agreement could prompt lenders to recall certain loans.

The breach was due to a delay in filing quarterly results stemming from inventory-related issues.

SunPower said on Tuesday it had not completed the review of its fiscal 2022 results and could not assure that the evaluation will not throw up more errors.

(Reporting by Sourasis Bose in Bengaluru; Editing by Krishna CHandra Eluri and Shinjini Ganguli)