Lifeway Foods, the US maker of cultured dairy products, has revealed mistakes in accounting for inventory means the numbers the company published for its first quarter cannot be relied upon.
“During the preparation of its financial statements for the quarter ended June 30, 2016, the company identified errors in the manual compilation of the company’s priced-out-physical inventory at March 31, 2016 and inaccurate accounts payable cut-off procedures during the … period that resulted in material errors in the previously issued financial statements,” Lifeway said in a filing with the US Securities and Exchange Commission on Friday (12 August).
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The company said it expects the restated amounts increase to net income by US$300,000. In May, Lifeway booked net income for the three months to 31 March of $648,000, which was a decline on the $654,000 it generated in the first quarter of 2015. Operating income declined to $1.1m from $1.4m a year earlier.
