- In its 2014 10-K (just filed), ExOne (NASDAQ:XONE) states it has "concluded that there are material weaknesses in the design and operating effectiveness of our internal control over financial reporting as defined in SEC Regulation S-X."
- The identified weaknesses: 1) "We did not maintain adequate control with respect to the application of [GAAP accounting]." 2) "Each of our primary locations (United States, Germany, Italy and Japan) utilizes separate and distinct [IT] platforms to record, process and summarize transactions. As a result, our process to consolidate and report financial information is substantially a manual process and inherently subject to error." 3) "[B]ecause of internal control weaknesses identified with respect to our financial reporting process and [IT] systems, management was unable to complete an adequate review of either subsidiary or consolidated financial results at a sufficient level of precision to prevent or detect misstatements."
- To address the issues, ExOne says it's changing its accounting/reporting process, overhauling its IT systems, and hiring more financial personnel.