RENEWABLE INNOVATIONS, INC. (REII)·Q3 2023 Earnings Summary

Executive Summary

• Q3 2023 disclosure was confined to an 8-K (Item 2.02) that primarily addressed prior-period accounting errors and a non-reliance determination for Q1 2023; no revenue, EPS, margin, or segment metrics were provided in the filing .
• The Board concluded the Q1 2023 financial statements should no longer be relied upon due to errors, and management plans to file a First Amended Form 10-Q/A “as soon as reasonably practicable” .
• Management acknowledged internal control deficiencies and stated they are working to improve design and implementation to prevent future misstatements .
• No earnings call transcript or Q3-specific press releases were located; the company’s press page shows updates earlier in 2023, but nothing in the Q3 window .

What Went Well and What Went Wrong

What Went Well

• Proactive remediation: Management intends to file a First Amended Form 10-Q/A for Q1 2023 and discussed the approach with auditors, indicating engagement and a remediation plan .
• Internal control focus: “Management has been assessing their internal controls and working to improve the design and implementation… in an effort to prevent such misstatements from occurring in the future,” signaling process improvements .
• Prior operational momentum (pre-Q3 reference): The press page highlights orders and deployments earlier in 2023, reflecting commercial activity despite later accounting issues (e.g., June 23, 2023 New Zealand UPS order) .

What Went Wrong

• Accounting errors and restatements: Q1 2023 omitted expense recognition for warrants issued by Nestbuilder that vested upon the reverse merger, requiring correction and undermining financial reliability .
• 2022 misstatements: Prior filings revealed overstated raw materials inventory and incorrect percent-complete inputs for in-progress projects, which reduced revenue and increased contract liabilities upon correction .
• Disclosure gaps: Q3 2023 filing provided no quantitative financial results (revenue, EPS, margins), and no earnings call transcript or updated guidance was available, limiting investor visibility .

Financial Results

Segment breakdown and KPIs were not provided in the Q3 2023 8-K .

Guidance Changes

No guidance language was included; disclosure focused on correcting prior errors and filing amendments .

Earnings Call Themes & Trends

No earnings call transcript was located for Q3 2023 .

Management Commentary

• “Management has been assessing their internal controls and working to improve the design and implementation of those internal controls in an effort to prevent such misstatements from occurring in the future.”
• “On November 2, 2023, our Board of Directors concluded that the Renewable Innovations Financial Statements for the three months ended February 28, 2023 should no longer be relied upon due to errors… We intend to file a First Amended Form 10-Q/A… as soon as reasonably practicable.”
• Prior period specifics: “Raw materials inventory was overstated… percent complete for in-progress projects were also incorrect… After correcting these errors, the amount of revenue was reduced, contract liabilities increased, and certain expenses and cost of sales were revised for the year ended November 30, 2022.”

Q&A Highlights

No Q3 2023 earnings call transcript or Q&A section was available on the investor or press pages .

Estimates Context

Wall Street consensus (S&P Global) for Q3 2023 EPS, revenue, and EBITDA was unavailable due to missing CIQ mapping for REII. Estimates could not be retrieved, and therefore no beat/miss assessment versus consensus is possible at this time. Values retrieved from S&P Global were unavailable due to mapping limitations.

Key Takeaways for Investors

• Near-term catalyst: the filing of the First Amended Form 10-Q/A for Q1 2023 and any associated restated metrics; this will be pivotal to restore financial visibility .
• Risk assessment: ongoing internal control remediation and prior-period errors increase uncertainty; monitor for additional corrections or disclosures that could affect historical comparability .
• Transparency gap: absence of Q3 financial metrics and an earnings call limits insight into operating performance; watch for subsequent filings to bridge the gap .
• Process over performance in Q3: the quarter’s narrative is dominated by remediation and non-reliance notices rather than operating results, which may overhang sentiment until amended filings are posted .
• Action items: track EDGAR for the 10-Q/A (Q1 2023) and any Q4/FY disclosures; evaluate changes to revenue recognition, contract liabilities, and expense classification stemming from restatements .
• Positioning: re-underwrite the thesis after restated financials are available; lack of consensus estimates and disclosures suggests holding back on model updates until reliable data is published .

Sources: Q3 2023 Form 8-K (Item 2.02 and Item 4.02) ; Q2 2023 Form 8-K (Item 2.02 and Item 4.02) ; Company press and investor pages .