High Wire Networks disclosed in a regulatory filing on July 15, 2026, that its previously issued financial statements for the first three quarters of 2025 contain material errors and will be restated. The announcement follows discussions between management and its independent auditor, Sadler, Gibb & Associates, which advised the company that the affected filings should no longer be relied upon.
What went wrong
During the preparation of the company's year-end audit, management identified that defaults on certain loans payable had not been recorded in the interim financial statements. The oversight caused the company to understate the current portion of loans payable on its balance sheet and to omit a non-operating loss on settlement of debt totaling $1,376,890. That omission meant total other expense and net loss were both understated across the affected periods.
The specific filings that will be restated are the quarterly reports for the periods ended March 31, June 30, and September 30, 2025. The company stated that any related press releases, earnings releases, and investor communications describing those periods should also no longer be relied upon.
Internal control weakness
Alongside the restatement, management concluded that the company's disclosure controls and procedures were not effective as of the end of each affected quarter. The filing points to a material weakness in internal control over financial reporting, specifically related to monitoring debt obligations and compliance with the terms of financing agreements. The company says it has begun implementing remediation measures, including enhanced monitoring of debt agreements, strengthened review procedures over debt obligations, and increased oversight by senior management.
Next steps
High Wire Networks intends to file amended quarterly reports on Form 10-Q/A for each of the three affected periods as soon as practicable. The nature of the errors and the effect of the restatement will be described in a new note to the restated financial statements. The company's auditor has confirmed it agrees with the statements made in the filing.
The restatement adds to a period of financial strain for High Wire Networks. The company's 2024 results showed a sharp revenue decline, and its delayed annual report earlier this year had already raised concerns about liquidity and cash reserves. The newly disclosed errors do not change the company's cash position, but they do signal that its financial reporting infrastructure requires significant repair.