Ault Alliance Announces Settlement of SEC Investigation
August 15 2023 - 8:15AM
Business Wire
Ault Alliance, Inc. (NYSE American: AULT), a diversified holding
company (“Ault Alliance” or the “Company”) today announced
that the Company, Executive Chairman Milton C. Ault, and Chief
Executive Officer William B. Horne have reached a settlement with
the U.S. Securities and Exchange Commission (“SEC”) to fully
resolve the SEC’s previously disclosed investigation into certain
of the Company’s public disclosures and its accounting for certain
transactions, among other matters.
Under terms of the settlement, the Company, Mr. Ault, and Mr.
Horne neither admit nor deny the SEC’s findings, which do not
entail intentional misconduct. The Company will pay a civil penalty
of $700,000 that was fully accrued in the fourth quarter of 2022;
Mr. Ault will pay disgorgement of $85,504 and a civil penalty of
$150,000; and Mr. Horne will pay a civil penalty of $20,720. In
addition, the Company has undertaken to retain an independent
consultant to conduct a comprehensive review of the Company’s
internal control over financial reporting and disclosure controls
and procedures, and to issue a report providing recommendations for
improvements.
Further details of the settlement can be found in the settlement
documents, which are publicly available on the SEC’s website.
The Company believes that this settlement is the right course of
action for the Company and continues to be committed to operating
at the highest level of integrity, including with respect to its
public filings and communications with investors.
Milton C. Ault, III, the Company’s Executive Chairman, stated
that: “Our settlement fully resolves the issues raised by the SEC’s
investigation, and we are focused on moving forward with the
Company’s business. Addressing the investigation has required
significant time and attention of the Company’s senior management
since it originated back in 2019, as well as significant Company
resources, and we are grateful to put the matter behind us.”
“Since the Company first learned of this investigation, we have
taken this matter very seriously, including by taking proactive
steps to address matters at issue,” said William B. Horne, the
Company’s Chief Executive Officer. “We have reevaluated and
strengthened our internal control over financial reporting, and we
have improved our processes, procedures, and supporting
documentation, including agreeing to hire an independent consultant
to assist in improving our processes. We remain committed to doing
the right thing on behalf of our employees and investors and are
pleased to have reached a resolution to this matter.”
About Ault Alliance, Inc.
Ault Alliance, Inc. is a diversified holding company pursuing
growth by acquiring undervalued businesses and disruptive
technologies with a global impact. Through its wholly and
majority-owned subsidiaries and strategic investments, Ault
Alliance owns and operates a data center at which it mines Bitcoin
and colocation and offers hosting services for the emerging
artificial intelligence ecosystems and other industries, and
provides mission-critical products that support a diverse range of
industries, including metaverse platform, oil exploration, crane
services, defense/aerospace, industrial, automotive,
medical/biopharma, consumer electronics, hotel operations and
textiles. In addition, Ault Alliance extends credit to select
entrepreneurial businesses through a licensed lending subsidiary.
Ault Alliance’s headquarters are located at 11411 Southern
Highlands Parkway, Suite 240, Las Vegas, NV 89141;
www.Ault.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made,
and the Company undertakes no obligation to update any of them
publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
the Company’s business and financial results are included in the
Company’s filings with the U.S. Securities and Exchange Commission,
including, but not limited to, the Company’s Forms 10-K, 10-Q and
8-K. All filings are available at www.sec.gov and on the Company’s
website at www.Ault.com.
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