> ## Content Index
> Fetch the complete content index at: https://www.bullished.co/llms.txt
> Use this file to discover other available public pages before exploring further.

# GlobalTech's 2025 Net Loss More Than Triples After $8.4 Million Tax Accounting Error Voids Two Years Of Financials
- URL: https://www.bullished.co/globaltechs-2025-net-loss-more-than-triples-after-8-4-million-tax-accounting-error-voids-b78a7ec6/
- Published: 2026-10-02T20:56:01.000Z
- Updated: 2026-10-03T20:38:32.000Z
- Description: The Nevada company's audit committee says every financial statement from its 2025 annual report through its most recent quarterly filing must be restated.
- Author: Matteo Parrino
- Tags: Earnings, GLTK, Industry: Communication Services

GlobalTech told investors Friday that its financial statements covering all of 2025 and the first half of 2026 contain material errors and can no longer be relied upon — a disclosure that wipes out the credibility of nearly two years of reported results for the small Nevada-based company. The error, rooted in a miscalculation of deferred tax assets, is expected to more than triple the company's reported net loss for 2025, according to an [8-K filed Friday](https://www.sec.gov/Archives/edgar/data/0001938338/000147793226006021/gltk%5F8k.htm?ref=bullished.co) with the SEC.

## What The Filing Says

On September 29, GlobalTech's audit committee — after discussions with management and the company's independent auditor, Zahid Jamil & Co — concluded that three sets of previously issued financial statements all contain material errors and must be restated. Those are: the audited annual results for the year ended December 31, 2025, filed with the SEC on March 31, 2026; the unaudited quarterly results for the three months ended March 31, 2026, filed May 15, 2026; and the unaudited results for the three and six months ended June 30, 2026, filed August 13, 2026.

The root cause is an error in how GlobalTech accounted for the realizability of its deferred tax assets — credits a company records when it expects to use past losses to reduce future tax bills. The company concluded that its prior accounting failed to appropriately weigh objectively verifiable negative evidence as of December 31, 2025, and instead placed undue reliance on subjective projections of future taxable income. That misjudgment violated standard accounting rules under [ASC 740](https://www.sec.gov/Archives/edgar/data/0001938338/000147793226006021/gltk%5F8k.htm?ref=bullished.co), the section of U.S. accounting standards governing income taxes.

The correction requires an additional valuation allowance of about $8.40 million as of December 31, 2025\. Once applied, the company's total valuation allowance against its deferred tax assets rises to $11.77 million, according to the [SEC filing](https://www.sec.gov/Archives/edgar/data/0001938338/000147793226006021/gltk%5F8k.htm?ref=bullished.co).

## The Revised Numbers

The financial impact runs across GlobalTech's balance sheet and income statement. On the income statement, tax expense for 2025 is expected to jump from $0.29 million to $8.69 million, pushing the net loss after taxes from $3.15 million to $11.55 million — a more than threefold increase. Comprehensive loss for the year would widen from $2.11 million to $10.51 million. Basic and diluted loss per share attributable to the company would change from $(0.01) to $(0.04).

On the balance sheet, the deferred tax asset is reduced to zero after the adjustment. A deferred tax liability of $5.76 million that had previously been offset against deferred tax assets will now be presented as a non-current liability. Total assets shrink from $103.15 million to $100.50 million, while total liabilities climb from $63.31 million to $69.07 million. Total shareholders' equity falls from $39.83 million to $31.43 million, driven by an increase in accumulated deficit from $39.82 million to $44.46 million and a decrease in non-controlling interest from $60.12 million to $56.35 million.

GlobalTech noted that the error did not affect the company's cash position, cash flows, revenues, or liquidity.

## Internal Controls Failed Too

Alongside the restatement, management disclosed that the error exposed material weaknesses in GlobalTech's internal controls over financial reporting — meaning the systems designed to catch exactly this kind of mistake were not working as of December 31, 2025\. The company said its disclosure controls and procedures were also not effective as of that date.

Management is continuing to evaluate the effect of the error on internal controls for the quarters ended March 31, 2026, and June 30, 2026\. A remediation plan is being developed and will be included in the amended periodic reports once filed.

GLTK shares closed at $4.98 at Friday's close, up about 4% from the prior session, though the 8-K was accepted after the market closed and that move predates the disclosure (market data). The filing was signed by Dana Green, GlobalTech's chief executive officer.

## What To Watch

GlobalTech is working to file an amended annual report on Form 10-K/A for the year ended December 31, 2025, and amended quarterly reports on Form 10-Q/A for the quarters ended March 31, 2026, and June 30, 2026, as soon as practicable. Those restated filings will carry revised financial statements, updated management discussion of results, and a full description of the identified material weaknesses alongside the company's remediation plan. The company cautioned that preliminary estimates are subject to change and that additional or different errors could surface as the review is completed.

Until the amended filings land, every set of financial statements GlobalTech has published since its 2025 annual report — including any related earnings releases or investor presentations — should be treated as unreliable, the audit committee said.

### Sources

- [8-K Filing — GlobalTech Corp (GLTK)](https://www.sec.gov/Archives/edgar/data/0001938338/000147793226006021/gltk%5F8k.htm?ref=bullished.co) — SEC EDGAR