Stewards updates Envy acquisition pro forma, books USD 20.04 million required-redemption liability for escrowed shares

• Stewards revised its preliminary acquisition accounting for the Envy Acquisition, reclassifying 7,000,000 escrowed shares as a mandatorily redeemable instrument rather than stockholders’ equity.
• The company now records a required-redemption liability of USD 20.04 million, measured as the present value of seven monthly USD 3 million payments discounted at a preliminary 18% annual effective rate.
• It also shifted USD 0.957 million of discount accretion into FY2025 interest expense under the pro forma assumption that the acquisition occurred on Jan. 1, 2025.
• The changes could alter the final liability measurement, acquired-asset basis, depreciation, amortization, and interest expense.
• The company expects to finalize the accounting in its next periodic report.

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