The Lovesac Company Reports Preliminary Second Quarter Fiscal Year 2024 Results - Seite 2

Financial Restatements and Postponement of Second Quarter Fiscal 2024 Financial Results

As announced on August 16, 2023, the Company has determined the need to restate its previously issued financial statements for fiscal year 2023 and its first quarter fiscal 2024 primarily due to errors in accounting for a last mile journal entry and the methodology used by the Company to calculate the accrual of its last mile freight expenses. Accordingly, the Company has determined that it is appropriate to correct the misstatements in the Company’s previously issued financial statements by amending its Annual Report on Form 10-K for the fiscal year ended January 29, 2023 (the “2023 Form 10-K/A”) and its Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2023 (the “First Quarter 2024 Form 10-Q/A”). The Company is working diligently to file its 2023 Form 10-K/A and First Quarter 2024 Form 10-Q/A as expeditiously as possible.

Given the time and focus dedicated to the restatement process and the completion and filing of the Company’s 2023 Form 10-K/A and First Quarter 2024 Form 10-Q/A, the Company currently expects a delay in completing its customary quarterly review and reporting process and the filing of its Form 10-Q for the fiscal second quarter ended July 30, 2023.

Lovesac will make a subsequent announcement to schedule the date and time of its earnings release and conference call for the second quarter fiscal 2024.

About The Lovesac Company

Based in Stamford, Connecticut, The Lovesac Company (NASDAQ: LOVE) is a technology driven company that designs, manufactures and sells unique, high-quality furniture derived through its proprietary Designed for Life approach which results in products that are built to last a lifetime and designed to evolve as customers' lives do. The current product offering is comprised of modular couches called Sactionals, premium foam beanbag chairs called Sacs, and the Sactionals StealthTech Sound + Charge System. As a recipient of Repreve's 6th Annual Champions of Sustainability, responsible production and innovation are at the center of the brand's design philosophy with products protected by a robust portfolio of utility patents. Products are marketed and sold primarily online directly at www.lovesac.com, supported by direct-to-consumer touch points in the form of our own showrooms, as well as through shop-in-shops and pop-up-shops with third party retailers. LOVESAC, SACTIONALS, AND THE WORLD'S MOST ADAPTABLE COUCH are trademarks of The Lovesac Company and are Registered in U.S. Patent and Trademark Office.