A Florida diving equipment maker built its second quarter out of the wrong year's numbers, and the net income it reported was two and a half times what it earned

The error was the year.

Brownie's Marine Group, a Pompano Beach company that designs, tests, manufactures and distributes recreational hookah diving, scuba and water safety products, told the Securities and Exchange Commission on Monday that its board decided on 14 August that the second-quarter accounts it had filed ten days earlier can no longer be relied upon. The filing states the cause without softening it: financial information from an incorrect reporting year was used in preparing the results for the three months ended 30 June 2026.

Management found it, the company says, during an internal review of what had already been filed, after noticing that the reported results did not match its own understanding of how the quarter had gone.

The two numbers that move

Reported operating results for the quarter go from a loss of $151,080 to income of $22,716, a swing of $173,796 across the sign.

Reported net income goes from $580,542 to $218,658. The withdrawn figure is 2.66 times the corrected one, and the difference is $361,884.

Two further adjustments accompany them. An out-of-period related-party interest item had the whole of the interest expense recorded in 2026 when it should have been accruing from 2023; management has analysed that and concluded it is not material. And the equity roll forward is being corrected to reflect the right 2025 and 2026 periods. The affected lines for the quarter are revenue, gross profit, gross profit margin, operating results, other income and net income.

The controls were already known to be broken

None of this arrives as a surprise about the company's internal controls, because the company had already said they did not work. It disclosed material weaknesses before this, and concluded that both its internal control over financial reporting and its disclosure controls and procedures were not effective as of 30 June 2026. The filing attributes the restatement specifically to weaknesses in period-end close and reconciliation.

Seven remediation measures follow. Most are what you would expect: more board and management review of quarterly filings, tighter close and reconciliation procedures including steps designed to confirm that financial information corresponds to the correct reporting period and fiscal year, extra review checkpoints, an evaluation of the accounting organisation, and personnel changes in the reporting function.

One is less usual. The company intends to implement technology-assisted financial review procedures, including AI-enabled analytical testing, as a supplemental control to flag period inconsistencies, mathematical discrepancies and unusual variances for human review.

The gap between the decision and the filing

The board reached its conclusion on Friday 14 August. The current report reached EDGAR at 11.59 on Monday 24 August. The general instructions to Form 8-K call for a report within four business days of the event, which on those dates was Thursday 20 August, and the filing offers no account of the interval.

Bush & Associates, CPA, the company's independent registered public accounting firm, has been informed and concurs with management's conclusion. An amended Form 10-Q is promised. Until it lands, the company says, nobody should rely on the original.