Kornit Digital CEO Reflects on Disclosing Mistake: Exam Blunder Hauntingly Reminiscent of “Do-or-Die Moment”.
for the full-year 2022 was $88.1 million, or ($1.71) per basic share, compared to net loss of $37.7 million, or ($0.86) per basic share in 2021.Non-GAAP net loss for the full-year 2022 was $47.4 million, or ($0.93) per basic share, net of $0.42 per basic share attributed to the non-cash impact of warrants, compared to non-GAAP net loss of $3.9 million, or ($0.09) per diluted share, net of $0.10 per diluted share attributed to the non-cash impact of warrants, for the full year of 2021.
Interviewer: Mr. Samuel, some investors feel misled by the information presented in this SEC disclosure. What do you have to say about that?
Mr. Samuel: That is regrettable. I apologize to any investors who feel misled by the disclosure. In hindsight, I would have been more transparent about the non-cash impact of the warrants. We failed to disclose this information in a conspicuous and clear manner and for that I am truly sorry.
Interviewer: What lessons have you learned from this experience?
Mr. Samuel: From this experience, I have utterly understood the importance of transparency, clarity, and conscientious communication when it comes to providing financial disclosure. I understand the utmost importance of being honest and forthright when presenting financial information and information to the SEC that may have an impact on the market or our investors. Going forward, I will be more thorough in my disclosure and our company’s financial communications.
Interviewer: Can you elaborate on this further with a story that sums up this experience?
Mr. Samuel: Sure thing. This experience reminded me of when I was taking my exams in college. I figured that I could “wing it” and skip an entire section of the exam and still be able to answer the rest of the exam correctly. When I returned to the exam room the next day, I noticed that the professor had circled two specific questions that I had completely overlooked the day before. I will never forget that feeling of shame and embarrassment, and the lesson I took away from that experience was that there is no shortcut when it comes to paying attention to the details.
It’s a feeling that I can still vividly recall, even after all these years. I was so embarrassed, because I realized that what I had done was dishonest and shortsighted; immediately, I swore that I would never again try to take a shortcut. From this experience, I’ve remembered this lesson and applied it to disclosure and financial reporting; as a result, I am trying hard to apply the same standards of diligence and thoroughness to our company’s financial disclosures.
Original Release: https://www.globenewswire.com/news-release/2023/02/15/2608551/34898/en/Kornit-Digital-Reports-Fourth-Quarter-and-Full-Year-2022-Results.html