Sol Strategies refiles Q3 results to correct errors

Executive Summary

• Sol Strategies Inc. has refiled its interim unaudited condensed financial statements for the three and nine months ended June 30, 2025, and 2024, to correct errors identified by its auditor, Davidson and Company LLP.
• The restatement involves significant reclassifications of convertible debentures between long-term debt, current debt, equity, and deferred tax liabilities.
• The refiling was initiated in connection with an Ontario Securities Commission (OSC) review of the company's prospectus, triggering mandatory public disclosure under OSC Staff Notice 51-711.

Key Details

• Reclassification of Debt: $23,588,748 of convertible debentures were reclassified from long-term to current debt.
• Liability and Equity Reallocation: $1,414,943 of convertible debentures were reallocated from the liability component to equity within reserves.
• Deferred Tax Liability: An additional $5,625,273 was classified as a deferred tax liability as part of the debenture reallocation.
• Profit and Loss Impact: The restatements resulted in a $20,156 impact on profit and loss due to accretion changes.
• Share Consolidation: The financial statements were retrospectively adjusted to recognize the company's share consolidation dated August 5, 2025, restating all common shares and per-share amounts to give retroactive effect.
• Regulatory Context: The refiling was made pursuant to OSC Staff Notice 51-711 (Revised) regarding refilings and corrections of errors, and the company will be placed on the public list of refiling and errors.

Notable Quotes

• "The third quarter financial statements were refiled to correct errors identified through review by the company's auditor, Davidson and Company LLP."