View Inc (VIEW.O) and a former CFO were cited by the SEC on Monday for understating the cost of fixing defective “smart” windows, resulting in a restatement.
Because View notified the issue, took corrective measures, and cooperated with the SEC, it won’t be fined. It neither admitted nor denied misconduct.
Former CFO Vidul Prakash, 55, was charged with negligence-based fraud, disclosure, and books and records in San Francisco federal court.
Records infractions between Dec. 2020 and May 2021.
View, situated in Milpitas, California, went public in March 2021 after merging with a Cantor Fitzgerald-backed special-purpose acquisition firm for $1.6 billion.
A malfunctioning sealing component in View’s smart windows, which adjust tint in reaction to the sun and are commonly used in office buildings, caused the situation.
According to the SEC, View declared $22 million to $25 million of liabilities, mostly for manufacturing replacement windows, but should have disclosed $48 million to $53 million, including shipping and installation charges.
Prakash was often informed that View would pay for shipment and installation, but the staff failed to analyze if the costs were probable and could be fairly expected, which would require disclosure, according to the SEC.
In November 2021, View announced it would restate more than two years of financials and removed Prakash as CFO.
View, Prakash, and their lawyers did not immediately reply to calls for comment.
Since the SPAC acquisition, View shares have dropped 99%. The shares traded at 12 cents on Monday morning. The corporation requested a reverse stock split from shareholders last month.
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