DriveItAway Holdings Initiates Restatement of 2024 Financial Statements

DriveItAway Holdings, Inc. (OTCMKTS: CLCN), a Delaware corporation, announced on February 24, 2025, that management identified material errors in the financial statements for the three and nine months ended June 30, 2024. The discrepancies, which concern the handling of convertible notes payable and associated derivative liabilities, have led the company to determine that the previously released financial information for that period should no longer be relied upon.

In response to the discovered errors, the company’s management is undertaking corrective measures. The necessary adjustments will be reflected in the Amended Quarterly Reports on Form 10-Q for the affected periods. Investors and other stakeholders are advised that all previously issued reports, press releases, and earnings communications regarding the relevant period should be considered obsolete as the financial data will undergo restatement.

Management’s review of the situation also revealed a material weakness in the company’s internal control over financial reporting. This finding, attributed to deficiencies that could prevent the timely detection and prevention of material misstatements, indicates that both internal control and disclosure controls were not effective during the period in question.

The company confirmed that it has been in discussion about these matters with its independent registered public accounting firm, Victor Mokuolu, CPA PLLC, since September 2024. No further details on the remedial measures or revised timelines for the issuance of amended reports were provided in the filing.

This development underscores ongoing challenges in financial reporting practices and is expected to have material implications for the company’s financial disclosure going forward. Investors should closely monitor forthcoming filings for additional details regarding the restatement and any impacts on future financial statements.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read DriveItAway’s 8K filing here.

DriveItAway Company Profile

DriveItAway Inc develops and offers a cloud platform/consumer application that enables dealers to sell vehicles through eCommerce, with its Pay as You Go app-based subscription program. The company was founded in 2017 and is based in Haddonfield, New Jersey.