Micromobility company Bird said on Monday it had overstated its revenue for more than two years by recognizing unpaid customer trips.
Bird’s audit committee found Friday that the company’s financial reports covering the first quarter of 2020 through the second quarter of 2022 “should no longer be relied upon,” according to a Securities and Exchange Commission filing. of USA (SEC).
The committee discovered the discrepancy while preparing Bird’s financial statements for the quarter ended Sept. 30, 2022. The Santa Monica-based electric scooter and bike-sharing company also said it will delay filing its third-quarter financial report, originally scheduled for Monday. .
Bird said it had recorded revenue on certain trips even when customers lacked sufficient “preloaded ‘wallet’ balances.” The company said it should have reported the unpaid balances in its financial statements as deferred income.
An internal investigation found that the company’s “information disclosure controls and procedures are not effective at a reasonable level of assurance.”
Bird, which went public in a November 2021 SPAC deal that valued the company at around $2.3 billion, said it plans to report its third-quarter results as soon as possible and reaffirm its previous financial results.
In August, Bird reported slightly missing second-quarter revenue estimates, with a net loss of $310.4 million on revenue of $76.7 million. He said his total number of trips doubled over the prior year period, but his average fare and number of trips per vehicle dropped.
Overall, the company suffered through a tumultuous second quarter, announcing plans to dismantle its retail business, wind down operations in unprofitable markets and lay off about 140 workers. CEO Travis VanderZanden stepped down as chairman in June, shortly after the New York Stock Exchange warned the company could be delisted for trading below $1.
Bird said during its second-quarter financial report that it would realize savings from cost-cutting measures in the third quarter.