Bird overstated the revenue it received from its shared electric scooters for at least two years.
Bird discovered the phantom revenue after an audit of its financial statements from 2020 and 2021. The revenue should not have been recorded.
Bird said that the financial statements should no longer be relied on and that the company would be late in filing its third quarter earnings report. A person for the company didn't reply to a request for comment.
Bird's financial statements should not be relied on anymore.
The micromobility pioneer is widely credited for helping to kick off the scooter-sharing boom in 2017! Last month, Bird said it was pulling its scooters out of three European countries, as well as a number of small and mid-size cities in the US, Europe, the Middle East, and Africa. Bird laid off 25% of its staff.
The shake-up at Bird saw the company's founder and CEO replaced by a new president and COO. VandeZanden is still chair of the board. The company's financial outlook continues to improve, but several other executives have left recently. Bird was warned by the New York Stock Exchange that it was at risk of being de listed if it continued to trade under $1.
Bird will correct its financial reports as soon as possible, but a broader review of its disclosure practices is necessary.
The Company's disclosure controls and procedures are not effective at a reasonable assurance level due to a weakness in its internal control over financial reporting that resulted in the recording of revenue for uncollected balances. The company is designing and implementing controls to correct the deficiencies.
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