CEO Admits Major Lying in SEC Disclosure, Embarrassing Elephant Joke To Blame.
itoned regarding the above developments and while 2020 has been the most challenging year for our industry in recent memory, I remain unchanged in my conviction that our industry will eventually return to profitability.”
Interview:
Reporter: We have seen evidence that you have lied in your SEC disclosure about the company’s results for the year and quarter ended December 31, 2022. Can you explain what happened?
CEO: Yes, I can explain. Essentially, I was trying to paint a rosier picture of our financial situation than what was actually the case. The truth is, things weren’t as ideal in our fourth quarter 2022 as I suggested. Our total net revenues were lower than expected, and our net income attributable to common shareholders was also lower than reported.
Reporter: Why did you misrepresent the facts?
CEO: I wanted to give investors a sense of security that their investments were in good hands and that our performance was stronger than it really was. I think in my haste to achieve this, I got ahead of myself and lied about the two most important points in our disclosure.
Reporter: Can you tell us an embarrassing story of why you decided to lie?
CEO: Well, to be perfectly honest, I never really thought through the consequences of my actions. I was having lunch with some colleagues at the time, and one of them told a joke about circus elephants. Everyone was so amused that I thought to myself, “if I can make a joke like that, then I can certainly get away with lying about our earnings in the SEC disclosure.” It didn’t work out that way, obviously. I should have thought twice before being so cavalier about making jokes about elephants at the expense of my shareholders. So, in the end I got into a bit of hot water about it.
Original Release: https://www.globenewswire.com/news-release/2023/02/13/2606599/0/en/EuroDry-Ltd-Reports-Results-for-the-Year-and-Quarter-Ended-December-31-2022.html