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EON Resources Inc. (NYSE American:EONR), a player in the crude petroleum and natural gas industry, has announced a correction to its financial statements for the third quarter of 2024. The announcement comes amid challenging times for the company, whose stock has declined over 80% in the past year and currently trades at $0.46. According to InvestingPro analysis, the company’s overall financial health score is rated as WEAK, with particularly concerning metrics in cash flow and price momentum. On Monday, the company’s Audit Committee, after consulting with senior management, determined that the financial statements for the three and nine months ended September 30, 2024, should not be relied upon and will require restatement.
The Houston-based company, formerly known as HNR Acquisition Corp., identified a clerical error in the accounting of a liability related to its Forward Purchase Agreement with Meteora Capital Partners (WA:CPAP), LP and associated entities. This error resulted in an understatement of Other Income (Expenses) and an overstatement of the forward purchase agreement liability in the previously issued statements. The company’s financial position shows significant strain, with a concerning current ratio of 0.13 and total debt of $43.58 million, highlighting the importance of accurate financial reporting.
The non-cash error does not affect certain operational metrics like Oil and Natural Gas Sales, Total (EPA:TTEF) Revenue, and Operating Income (Loss). However, it is estimated to increase Total Other Income (Expenses) by approximately $5.2 million for the impacted periods. Consequently, Net income (loss) will also increase by the same amount, with a corresponding decrease in total current liabilities and total liabilities as of September 30, 2024.
These preliminary estimates are subject to change. EON Resources highlighted that the forthcoming Annual Report for the fiscal year ended December 31, 2024, will include restated figures for the affected periods. The company plans to file this report no later than fifteen days after its original due date and will also adjust the financial statements in its upcoming Form 10-Q for September 30, 2025.
This announcement follows the company’s previous acknowledgment of material weaknesses in its financial accounting processes, including insufficient accounting personnel and lack of segregation of duties.
EON Resources has discussed these matters with its independent registered public accounting firm, Marcum LLP, as required by regulatory standards. The information in this article is based on a press release statement from EON Resources Inc.
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