Nocera delays annual report due to audit complexities

Nocera , Inc. (NASDAQ:NCRA), an agriculture production company trading at $0.94 per share with a market cap of $13.4 million, announced Monday that it has not met the extended deadline for filing its Annual Report on Form 10-K for the fiscal year ended December 31, 2024. According to InvestingPro analysis, the company’s overall financial health score stands at "FAIR," with notable concerns about its operational performance. The company had previously obtained a 15-day extension to the original due date, which moved the deadline to April 15, 2025, as disclosed in a Form 12b-25 filed with the Securities and Exchange Commission (SEC) on March 31, 2025.

The delay in filing is attributed to the time required for providing comprehensive responses and documentation to its independent registered public accounting firm to finalize the audit process. The company has been compiling necessary materials since the audit’s commencement. Additionally, the inclusion of restated financial information for the interim periods ended March 31, June 30, and September 30, 2024, has also contributed to the delay. These restatements are related to the accounting treatment of warrant liabilities as previously disclosed in a Form 8-K filed on April 3, 2025. The company’s financial challenges are reflected in its performance metrics, with InvestingPro data showing negative EBITDA of $1.31 million and concerning gross profit margins of just 0.98%.

Nocera also mentioned that it is responding to comments and inquiries from the U.S. Securities and Exchange Commission concerning its financial statements, which is further delaying the audit completion.

The company is working closely with its auditors to finalize the audit and intends to file the Form 10-K as soon as reasonably practicable. This announcement is based on a press release statement.

In other recent news, Nocera, Inc. announced plans to restate financial statements for three quarters of 2024 due to significant errors. The company’s Board of Directors, in consultation with its independent accounting firm, determined that financial reports for the quarters ending March 31, June 30, and September 30 of 2024 were unreliable. The errors involved the misaccounting of changes in the fair value of Nocera’s warrant liability, which was overstated by approximately 70%, affecting total liabilities by 35% as of September 30, 2024. This miscalculation also impacted the reported net loss of $1.16 million for the year. The company plans to correct these inaccuracies in its forthcoming Annual Report on Form 10-K, expected by April 15, 2025. A material weakness in internal controls over financial reporting related to the evaluation and measurement of warrant liabilities was also identified. Nocera is addressing this weakness to prevent future occurrences. These developments were disclosed in a statement from the company’s SEC filing.

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