• Marketplace
  • Resources
  • Business Directory
  • Events
  • Advertise
  • Brand Pulse
  • Publish a Press Release
  • Get the Newsletter
  • Contact
  • About Us
The FUTURE OF WORK® since 2003
Allwork.Space
No Result
View All Result
Subscribe
  • More
    • Columnists
      • Dr. Gleb Tsipursky – The Office Whisperer
      • Nirit Cohen – WorkFutures
      • Angela Howard – Culture Expert
      • Drew Jones – Design & Innovation
      • Jonathan Price – CRE & Flex Expert
    • Get the Newsletter
    • Events
    • Advertise With Us
    • Publish a Press Release
    • Brand PulseNew
    • Partner Portal
  • Latest News
  • Business
  • Leadership
  • Work-life
  • Career Growth
  • Tech
  • Design
  • Workforce
  • Coworking
  • CRE
  • Podcast
  • More
    • Columnists
      • Dr. Gleb Tsipursky – The Office Whisperer
      • Nirit Cohen – WorkFutures
      • Angela Howard – Culture Expert
      • Drew Jones – Design & Innovation
      • Jonathan Price – CRE & Flex Expert
    • Get the Newsletter
    • Events
    • Advertise With Us
    • Publish a Press Release
    • Brand PulseNew
    • Partner Portal
  • Latest News
  • Business
  • Leadership
  • Work-life
  • Career Growth
  • Tech
  • Design
  • Workforce
  • Coworking
  • CRE
  • Podcast
No Result
View All Result
Subscribe
Allwork.Space
No Result
View All Result
Advertisements
Nexudus - Tech Stack Lovers
Home Coworking

WeWork’s Financial Statements Are No Longer Reliable As The Company Reveals “Massive Oversight”

WeWork announced that it would need to restate financial statements over three quarters after mislabeling a portion of its public shares.

Aayat AlibyAayat Ali
December 2, 2021
in Coworking
Reading Time: 3 mins read
A A
WeWork Financial Statements Are No Longer Reliable As The Company Reveals Massive Oversight
  • WeWork announced it would need to correct financial statements for three quarters. 
  • Public shares were incorrectly listed as “permanent equity”. 
  • Management says there was a “material weakness” that led to the oversight. 

After WeWork went public via merging with special purpose acquisition company BowX Acquisition Corp. about one month ago, it appeared that its turbulent story could be over. 

However, as WeWork seemed like it could pose as a reliable, trustworthy company, the coworking firm has pulled the rug out from under investors again. 

Advertisements
Disaster Avoidance Experts

In a regulatory filing with the Securities and Exchange Commission on Wednesday, WeWork announced that it would need to restate financial statements over three quarters after mislabeling a portion of its public shares. 

The revelation came after the company reevaluated an accounting classification of Class A common stock that was issued as part of units sold in the IPO by its predecessor BowX prior to the merger. 

Advertisements
Maximize Flexible Space Revenue

Through this evaluation and consultation with BowX’s accounting firm, WeWork determined that a portion of its public shares classified as “permanent equity” should have been listed as “temporary equity.”  

Now, the company is saying that these financial statements are no longer reliable.  

In addition to this glaring oversight, the company’s management stated that there “was a material weakness in internal control over financial reporting relating to the interpretation and accounting.” 

Although the “material weakness” mentioned does not carry over to WeWork itself, the company noted that it will be described once the report is corrected. 

Advertisements
Yardi Kube automates flex and coworking operations

Since going public, WeWork’s shares have been less-than-impressive, falling 5.2% to $8.46 in after-hours trading. 

WeWork has attempted to remedy its brand over the last few years after its tumultuous attempt to go public in 2019 was thwarted due to an egregious CEO, an outlandish $47 million valuation, and a reputation of a toxic culture.  

The firm has made efforts to shed this infamous skin by enlisting the help of notable seasoned commercial real estate executives and trimming back on some of its more lavish acquisitions. 

However, it appears that WeWork’s cycle of grand promises, receiving money, and failing to meet expectations is deeply ingrained into the company’s DNA.

More stories for you

Masculinity At Work Why Men Refusing To Ask For Help Is An Actual Crisis For The Future Of Work

Masculinity At Work: Why Men Refusing To Ask For Help Is An Actual Crisis For The Future Of Work

8 hours ago
How AI Is Creating a Profit Divide Among Coworking Operators

How AI Is Creating A Profit Divide Among Coworking Operators

3 days ago
The Future Of Online Work Is At Risk — Is This Creator Economy Prepared For The Fallout?

The Future Of Online Work Is At Risk — Is This Creator Economy Prepared For The Fallout?

4 days ago
IWG Partners With SmartLabs To Bring Flexible, Fully Managed Labs To Global R&D Markets

IWG Partners With SmartLabs To Bring Flexible, Fully Managed Labs To Global R&D Markets

5 days ago
Advertisements
Subscribe to the Future of Work Newsletter
Tags: BusinessCoworking
Share5Tweet3Share1
Aayat Ali

Aayat Ali

Aayat is an editor for the Daily Digest based in Lexington, Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces.

Other Stories Recommended For You

Masculinity At Work Why Men Refusing To Ask For Help Is An Actual Crisis For The Future Of Work
Work-life

Masculinity At Work: Why Men Refusing To Ask For Help Is An Actual Crisis For The Future Of Work

bySheya Michaelides
8 hours ago

Supporting men’s mental health at work requires cultural and systems change.

Read more
How AI Is Creating a Profit Divide Among Coworking Operators

How AI Is Creating A Profit Divide Among Coworking Operators

3 days ago
The Future Of Online Work Is At Risk — Is This Creator Economy Prepared For The Fallout?

The Future Of Online Work Is At Risk — Is This Creator Economy Prepared For The Fallout?

4 days ago
IWG Partners With SmartLabs To Bring Flexible, Fully Managed Labs To Global R&D Markets

IWG Partners With SmartLabs To Bring Flexible, Fully Managed Labs To Global R&D Markets

5 days ago
Advertisements
Nexudus - Tech Stack Lovers
Advertisements
Disaster Avoidance Experts

Unlock your competitive edge in tomorrow's workplace.

Join a community of forward-thinking professionals who get exclusive access to the latest news, trends, and innovations that are shaping the future of work.

©2024 Allwork.Space News Corporation. All Rights Reserved.

Exploring the Future Of Work® since 2003.

Advertise   Newsletters   Privacy Policy   Terms Of Use   About Us   Contact   Submit a Press Release   Brand Pulse   Podcast   Events   

No Result
View All Result
  • Home
  • Latest News
  • Topics
    • Business
    • Leadership
    • Work-life
    • Workforce
    • Career Growth
    • Design
    • Tech
    • Coworking
    • Marketing
    • CRE
  • Podcast
  • Events
  • About Us
  • Solutions
    • Advertise | Media Kit
    • Publish a Press Release
    • Brand Pulse
Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00