Ault Inc. announces settlement of SEC investigation

Ault announced that the company, executive chairman Milton Ault, and CEO William Horne have reached a settlement with the U.S. Securities and Exchange Commission, or SEC, to fully resolve the SEC’s previously disclosed investigation into certain of the company’s public disclosures and its accounting for certain transactions, among other matters. Under terms of the settlement, the company, Ault, and Horne neither admit nor deny the SEC’s findings, which do not entail intentional misconduct. The company will pay a civil penalty of $700,000 that was fully accrued in the fourth quarter of 2022; Ault will pay disgorgement of $85,504 and a civil penalty of $150,000 and Horne will pay a civil penalty of $20,720. In addition, the company has undertaken to retain an independent consultant to conduct a comprehensive review of the company’s internal control over financial reporting and disclosure controls and procedures, and to issue a report providing recommendations for improvements.