DuPont de Nemours Discloses Non-Reliance on Previously Issued Financial Statements in Recent 8-K Filing

EIDP, Inc., a subsidiary of Corteva, Inc., disclosed in a recent 8-K filing with the Securities and Exchange Commission (SEC) that the previously issued financial statements for the year ended December 31, 2023, should no longer be relied upon. The Company identified a material misclassification in its Statement of Cash Flows and a related material weakness in internal controls. As a result of this misclassification, the unaudited consolidated financial statements for the periods ended March 31, 2024, June 30, 2024, and September 30, 2024, should also not be relied upon.

The misclassification pertains to intercompany transactions between Corteva and EIDP, which were incorrectly reflected in the Statement of Cash Flows, affecting the operating activities instead of investing and financing activities. While this misclassification did not impact Corteva’s consolidated financial statements, it led to a restatement of EIDP’s financials. The restatement results in an improvement to the operating activities’ cash flow by approximately $400 million for each Affected Period, with corresponding adjustments to investing and financing activities.

EIDP, Inc. will restate its consolidated financial statements for the Affected Periods, with the restated financials to be included in its Annual Report on Form 10-K for the year ended December 31, 2024. The Company acknowledged a material weakness in its internal control over financial reporting, attributing the misclassification to a lack of effective controls for cash flow classification related to intercompany transactions.

While EIDP, Inc. confirmed that the misclassification did not impact debt covenants or management compensation, it recognized the need to address the internal control weakness. The Company’s parent company, Corteva, verified that the misclassification was isolated to EIDP’s standalone financial statements and did not affect Corteva’s consolidated financials or internal controls.

Management at EIDP, Inc., along with Corteva’s Board of Directors and Audit Committee, consulted with PricewaterhouseCoopers LLP, the independent registered public accounting firm, regarding the matter. Despite the misclassification, which was identified during the review of financial results, the Company anticipates timely filing its Annual Report on Form 10-K for the year ended December 31, 2024, with the restated financial statements.

The Company emphasized that the misclassification was not intentional, did not impact Corteva’s financials, and did not disrupt compliance with debt covenants or management compensation. The Board remains focused on addressing internal control weaknesses to ensure effective financial reporting and disclosure procedures moving forward.

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

About DuPont de Nemours

DuPont de Nemours, Inc provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through Electronics & Industrial, Water & Protection, and Corporate & Other segments. The Electronics & Industrial segment supplies materials and solutions for the fabrication of semiconductors and integrated circuits.