Regulator demands NRF must revise statements

The Securities and Exchange Commission (SEC) has instructed NR Instant Produce (NRF) to revise its full-year 2024 and 2025 first-quarter financial statements, citing issues related to the accounting treatment of its shareholding changes in Kairous Asia Ltd (KAL).

- NUNTAWUN POLKUAMDEE

According to the SEC, NRF recorded the repayment of loans and accrued interest received in the form of KAL common shares as a business acquisition. KAL and its subsidiaries were established for the purpose of merging with other businesses under a special purpose acquisition company (SPAC) structure.

As no such merger has taken place, and given that KAL’s financials primarily consist of deposits and non-current liabilities without active business operations, the entity does not meet the definition of a “business” under relevant financial reporting standards, the regulator said in a statement.

The SEC also highlighted delays in KAL's SPAC-related activities compared with the original plan, which raises concerns about potential impairment of assets tied to the SPAC structure. These may include investments in subsidiaries, loans to subsidiaries, and accrued interest, with future recoverability hinging on the eventual success of the SPAC transaction.