GlobalTech Corporation informed investors on September 29, 2026, that financial statements for the fiscal year ended December 31, 2025, and subsequent interim periods in 2026, contain material errors and should not be relied upon. The company identified a material tax accounting error that required an additional valuation allowance of approximately $8.40 million as of December 31, 2025.

The error means financial reports previously filed with the Securities and Exchange Commission are inaccurate, affecting key metrics for investors. This change impacts the reported profitability, asset valuation, and overall financial health of GlobalTech Corporation for the period.

What the Records Show

The Audit Committee of GlobalTech Corporation's Board of Directors, following discussions with management and independent registered public accounting firm Zahid Jamil & Co, concluded the previously issued financial statements were unreliable. These include the audited consolidated financial statements for the year ended December 31, 2025, filed on March 31, 2026. Also deemed unreliable are the unaudited condensed consolidated financial statements for the three months ended March 31, 2026, filed on May 15, 2026, and for the three and six months ended June 30, 2026, filed on August 13, 2026.

The non-reliance determination stemmed from an error in the company's accounting for the realizability of its deferred tax assets as of December 31, 2025. This error relates to Accounting Standards Codification (ASC) 740-10-30-23 through 45-6 and ASC 740-10-30-21 through 30-22. The company determined that its previous accounting "did not appropriately weigh the objectively verifiable negative evidence existing as of December 31, 2025, and placed undue reliance on subjective projections of future taxable income". This required an additional valuation allowance of approximately $8.40 million.

Management also identified additional material weaknesses in the company's internal control over financial reporting as of December 31, 2025. They concluded that GlobalTech Corporation's disclosure controls and procedures were not effective as of that date. The company reported that the error did not affect cash, cash flows, revenues, or liquidity.

The Timeline

The events leading to the non-reliance declaration unfolded over several months in 2026.
March 31, 2026:* GlobalTech Corporation filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. This report contained the financial statements later deemed unreliable.
May 15, 2026:* The company filed its Quarterly Report on Form 10-Q for the three months ended March 31, 2026. These unaudited statements are also now considered unreliable.
August 13, 2026:* GlobalTech Corporation filed its Quarterly Report on Form 10-Q for the three and six months ended June 30, 2026. These too are now subject to restatement.
September 29, 2026:* The Audit Committee of GlobalTech Corporation's Board of Directors officially concluded that the previously issued financial statements for 2025 and 2026 should no longer be relied upon. This decision was made after discussions with management and the independent registered public accounting firm, Zahid Jamil & Co.

What Changed and for Whom

The identified error and subsequent restatement will significantly alter GlobalTech Corporation's reported financial position. The loss after tax for the year ended December 31, 2025, is now expected to increase from $3.15 million to $11.55 million. The basic and diluted loss per share for 2025 will change from $(0.01) to $(0.04). Comprehensive loss is also projected to increase from $2.11 million to $10.51 million.

On the balance sheet, total assets are expected to decrease from $103.15 million to $100.50 million. Total liabilities will increase from $63.31 million to $69.07 million. Total shareholders' equity will decrease from $39.83 million to $31.43 million. This change is attributed to an increase in the accumulated deficit, from $39.82 million to $44.46 million, and a decrease in non-controlling interest from $60.12 million to $56.35 million. The deferred tax asset on the December 31, 2025, Balance Sheet will be reduced to zero after this adjustment. The company's total valuation allowance as of December 31, 2025, will increase to $11.77 million.

For investors and other stakeholders, these changes mean that the previously published financial health of GlobalTech Corporation was substantially overstated. The revised figures present a less favorable picture of profitability and asset backing. The identification of additional material weaknesses in internal control over financial reporting and ineffective disclosure controls and procedures also signals internal issues.

What GlobalTech Corporation Has Said Publicly

GlobalTech Corporation plans to make the required amendments to its Annual Report on Form 10-K for the year ended December 31, 2025, and to the affected subsequent Quarterly Reports on Form 10-Q. The company stated it will file amended reports reflecting these corrections. The company's public website describes GlobalTech as a publicly traded operating and technology platform company that builds AI and data companies inside real operating infrastructure. This includes telecommunications infrastructure, retail commerce, enterprise software, financial technology, and digital platforms. GlobalTech stated that its operating businesses generate over $50 million in revenue.

What We Could Not Confirm

We could not confirm the specific details or examples of the "undue reliance" on subjective projections of future taxable income that led to the material tax accounting error. The specific individuals responsible for the initial accounting error or the decision-making process behind the subjective projections remain unclear. While additional material weaknesses were identified, the precise nature of these weaknesses beyond the tax accounting issue was not detailed in the available records. We also could not confirm the exact timeline for filing the amended and restated financial reports, only that the company plans to do so.