Restatement of Previously Issued Consolidated Financial Statements

6 Months Ended

Jun. 30, 2024

Restatement of Previously Issued Consolidated Financial Statements [Abstract]

Restatement of Previously Issued Consolidated Financial Statements

Note 1 – Restatement of Previously Issued Consolidated Financial Statements

In connection with the preparation of the consolidated financial statements for year ended December 31, 2024, the Company identified errors that stemmed from the erroneous reversal and treatment of a liability. As a result of correcting the accounting for this liability, the Company restated its unaudited consolidated financial statements for the three and six months ended June 30, 2024.

The tables below represent our restated consolidated financial statements as of June 30, 2024.

As of and for the six months ended June 30, 2024

The effects of the restatement on the Consolidated Balance Sheet as of June 30, 2024 are summarized in the following table:

	As of June 30, 2024
	As Previously Reported		Adjustment in Thousands		As Restated
Accounts payable and accrued liabilities	$	44,392	$	3,465	$	$47,857
Total current liabilities	$	148,439	$	3,465	$	151,904
Total liabilities	$	485,324	$	3,465	$	488,789
Retained earnings/(deficits)	$	(102,058)	$	(3,465)	$	(105,523)
Total Reading International, Inc. stockholders’ equity	$	9,994	$	(3,465)	$	6,529
Total stockholders’ equity	$	9,531	$	(3,465)	$	6,066

For the three months ended June 30, 2024

The effects of the restatement on the Consolidated Statement of Operations for the three months ended June 30, 2024, are summarized in the following table.

	For the three months ended June 30, 2024
	As Previously Reported		Adjustment in Thousands		As Restated
Cinema expenses	$	(39,418)	$	(3,340)	$	(42,758)
Total costs and expenses		(51,161)		(3,340)		(54,501)
Operating income (loss)		(4,352)		(3,340)		(7,692)
Interest expense, net		(5,252)		(125)		(5,377)
Income (loss) before income tax expense and equity earnings of unconsolidated joint ventures		(9,811)		(3,465)		(13,276)
Income (loss) before income taxes		(9,692)		(3,465)		(13,157)
Net income (loss)		(9,536)		(3,465)		(13,001)
Net income (loss) attributable to Reading International, Inc.		(9,341)		(3,465)		(12,806)
Basic earnings (loss) per share		(0.42)		(0.15)		(0.57)
Diluted earnings (loss) per share	$	(0.42)	$	(0.15)	$	(0.57)

The effects of the restatement on the Summary of Controlling and Noncontrolling Stockholders’ Equity for the three months ended June 30, 2024, are summarized in the following table.

	Retained earnings / (deficits)
	As Previously Reported		Adjustment in Thousands		As Restated
Net loss	$	(102,058)	$	(3,465)	$	(105,523)
At June 30, 2024	$	(102,058)	$	(3,465)	$	(105,523)
	Total stockholders’ equity

	As Previously Reported		Adjustment in Thousands		As Restated
Net loss	$	9,531	$	(3,465)	$	6,066
At June 30, 2024	$	9,531	$	(3,465)	$	6,066

The effects of the restatement on the Consolidated Statement of Comprehensive Income for the three months ended June 30, 2024, are summarized in the following table.

	For the three months ended June 30, 2024
	As Previously Reported		Adjustment in Thousands		As Restated
Net income (loss)	$	(9,536)	$	(3,465)	$	(13,001)
Comprehensive income (loss)		(8,650)		(3,465)		(12,115)
Total Comprehensive income (loss)	$	(8,455)	$	(3,465)	$	(11,920)
	For the six months ended June 30, 2024
	As Previously Reported		Adjustment in Thousands		As Restated
Net income (loss)	$	(22,939)	$	(3,465)	$	(26,404)
Comprehensive income (loss)		(24,594)		(3,465)		(28,059)
Total Comprehensive income (loss)	$	(24,223)	$	(3,465)	$	(27,688)

For the six months ended June 30, 2024

The effects of the restatement on the Consolidated Statement of Operations for the six months ended June 30, 2024, are summarized in the following table.

	For the six months ended June 30, 2024
	As Previously Reported		Adjustment in Thousands		As Restated
Cinema expenses	$	(80,138)	$	(3,340)	$	(83,478)
Total costs and expenses		(103,743)		(3,340)		(107,083)
Operating income (loss)		(11,882)		(3,340)		(15,222)
Interest expense, net		(10,537)		(125)		(10,662)
Income (loss) before income tax expense and equity earnings of unconsolidated joint ventures		(23,412)		(3,465)		(26,877)
Income (loss) before income taxes		(23,318)		(3,465)		(26,783)
Net income (loss)		(22,939)		(3,465)		(26,404)
Net income (loss) attributable to Reading International, Inc.		(22,569)		(3,465)		(26,034)
Basic earnings (loss) per share		(1.01)		(0.15)		(1.16)
Diluted earnings (loss) per share	$	(1.01)	$	(0.15)	$	(1.16)

The effects of the restatement on the Consolidated Statement of Cash Flows for the six months ended June 30, 2024 are summarized in the following table:

	For the six months ended June 30, 2024
	As Previously Reported		Adjustment in Thousands		As Restated
Net income (loss)	$	(22,939)	$	(3,465)	$	(26,404)
Accounts payable and accrued expenses	$	1,918	$	3,465	$	5,383

The following footnotes have been updated to reflect the restatements made to the consolidated financial statements:

-Note 2 Description of Business and Segment Reporting

-Note 4 Liquidity and Impairment Assessment

-Note 6 Earnings Per Share

-Note 8 Leases

-Note 12 Income Tax

-Note 17 Summary of Controlling and Noncontrolling Stockholders’ Equity