On Monday, Rigel (NASDAQ:RIGL) Resource Acquisition Corp (NYSE:RRAC), a company operating in the blank check industry, announced that its previously issued financial statements for the first quarter ended March 31, 2024, should no longer be relied upon.
The decision came after the company's audit committee, in consultation with management, identified an error regarding legal costs that were improperly accounted for in the General and Administrative Expenses section of its Unaudited Condensed Statement of Operations.
The New York-based company, which is focused on real estate and construction, disclosed that due to the error, legal expenses were understated by approximately $1.6 million. This misstatement also affected the reported accounts payable and accrued expenses on the balance sheet.
The company's independent registered public accounting firm has been apprised of the issue as disclosed in the 8-K filing with the Securities and Exchange Commission. Rigel Resource Acquisition Corp has taken immediate steps to address the misreporting and will be revising its financial statements accordingly.
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