PowerFleet to restate certain financial statements

Powerfleet announced its intention to adjust its historical accounting treatment for the redemption premium associated with its Series A convertible preferred stock, which was fully redeemed in connection with the closing of the company’s business combination with MiX Telematics Limited on April 2, due to a technical accounting issue. This will result in the restatement of its financial statements for the fiscal years ended December 31, 2021 and 2022, and for each of the interim periods during the 2022 and 2023 fiscal years. The technical accounting issue was identified during the final stages of the preparation for filing of the company’s financial statements for the fiscal year ended December 31, 2023 and has been determined by the company to require adjustment to comply with Generally Accepted Accounting Principles. In connection with the restatement, the company expects to voluntarily revise the financial statements for the same periods to make other unrelated and immaterial revisions. This action follows a comprehensive review by the company’s management and audit committee. The company is working diligently to finalize the restatement process. The company is committed to completing this process as swiftly as reasonably possible and is well positioned to file the 2023 Form 10-K with the SEC in April 2024.