Microvast Holdings announces departure of chief financial officer
Microvast Holdings, Inc. (NASDAQ:MVST), a manufacturer of electrical machinery and equipment with a market capitalization of $424 million, disclosed on Monday that its previously issued financial statements for the second and third quarters of 2024 should not be relied upon. The company, which has seen its stock surge 347% over the past six months despite showing signs of rapid cash burn according to InvestingPro data, identified errors related to the impairment of an industrial facility in Clarksville, Tennessee.
The Audit Committee of Microvast’s Board of Directors, in consultation with management and accounting advisors, determined the need to reassess the impairment recorded for the Clarksville Property as of June 30, 2024. This decision was reached on March 16, 2025, and the company is actively working to finalize the reassessment. InvestingPro analysis indicates the company’s overall financial health score is "FAIR" at 2.01, with particularly concerning metrics in profit and cash flow scores.
Microvast also acknowledged that the errors might indicate material weaknesses in its internal controls over financial reporting and its disclosure controls and procedures. Deloitte Touche Tohmatsu Certified Public Accountants LLP, the company’s independent registered public accounting firm since 2011, has been informed of these developments.
The company’s statement contained forward-looking remarks regarding the timing and impact of the reassessment and the potential identification of control weaknesses. These statements are subject to various risks and uncertainties, and actual results may differ materially.
This news is based on a press release statement and serves as an update to investors and other stakeholders regarding the reliability of Microvast’s previously reported financial information. The company has yet to announce the outcomes of the reassessment and its impact on past financial reports. With the next earnings report due in 12 days, InvestingPro subscribers can access 13 additional exclusive tips and a comprehensive Pro Research Report that provides deep-dive analysis of MVST’s financial health, valuation metrics, and growth prospects among 1,400+ top stocks covered.
In other recent news, Microvast Holdings, Inc. announced a significant breakthrough in its True All-Solid-State Battery (ASSB) technology. This advancement is expected to improve the safety, energy density, and efficiency of various applications by utilizing a bipolar stacking architecture, which allows for higher voltage levels within a single battery cell. The company has developed a proprietary all-solid electrolyte separator membrane, designed specifically for solid-state applications, which could enhance operational safety and energy efficiency. Additionally, Microvast has appointed Fariyal Khanbabi as the new Principal Accounting Officer following the resignation of Lu Gao. Khanbabi, who has been serving as the company’s Chief Financial Officer since October 2024, brings extensive financial leadership experience to her new role. The company has not disclosed any new contractual arrangements or specific responsibilities for Khanbabi in her new position. These developments are part of Microvast’s ongoing efforts to innovate in the battery technology space and strengthen its leadership team. Investors will be observing how these changes might influence the company’s future financial strategies and technological advancements.
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