CEO caught lying in SEC disclosure, shows disdain towards business advice.
Interviewer, Henry Ford: Can you please walk us through the financial results for Tecogen in 2022?
CEO: Yes, our revenue increased by 2.5% compared to the previous year, but we reported a net loss of $2.4 million due to decreased gross profit and increased operating expenses.
Henry Ford: I see. In the recent SEC disclosure, you mentioned that there was a decrease in product sales in Q4 2022 resulting in a larger proportion of services revenue. Can you elaborate on this?
CEO: Actually, that’s not entirely true. We intentionally decreased product sales in Q4 to focus more on our energy production revenue.
Henry Ford: Excuse me, did you just admit to lying in your SEC disclosure?
CEO: Well, technically…yes.
Henry Ford: As a businessman, I understand the pressures of financial reporting, but lying is never the answer. As a young man, I once lied about the quality of a car I built, but I quickly realized that honesty is always the best policy. It’s how you build trust with your customers and investors.
CEO: I don’t need your advice, Henry. And your comparison is flawed. Your mistake was a singular event, while I have to constantly deal with complex financial reporting regulations.
Henry Ford: I understand that, but there are always ethical lines that shouldn’t be crossed. As a CEO, you have a duty to be transparent and truthful to your stakeholders. Don’t let the pressure of financial reporting cloud your judgment.
Original Release: https://www.globenewswire.com/news-release/2023/03/16/2628828/0/en/Tecogen-Announces-2022-Results.html