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id: 525, Created by Stan Vick, Scout
Daktronics Unexpected Going Concern Case
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On December 6, 2022, Daktronics stated with the SEC that it would be unable to timely file its Quarterly Report for the period ended October 29, 2022, and that there is “substantial doubt” about the Company’s ability to continue as a going concern.
- Daktronics also reported that it recorded a valuation allowance of approximately $13.0 million for deferred tax assets, which “created a covenant violation under our line of the credit agreement.”
- The Company “also expects to conclude that its disclosure controls and procedures and internal control over financial reporting were not effective as a result of material weaknesses.”
On this news, Daktronics’ share dropped 39% and the Company lost over $59 million of its capitalization, thereby injuring investors.
Investors have reasons to suspect that the Company, its Leaders, and its Services providers could have committed gross negligence in the management of the Company and disclosure of information to shareholders.
Failure to Disclose,
Breach of Fiduciary duty,
Shock Event Date
06 December 2022