Root Adjusts Financial Reporting for Equity Awards Tax

An announcement from Root (ROOT) is now available.

Root, Inc. has an equity incentive plan that issues equity awards to key stakeholders, which are settled either by withholding shares or through cash payments for tax purposes. The company announced that the $10.6 million tax liability from these equity awards, expected for Q2 2024, will not impact Operating expenses as initially thought. Instead, it will be reported as Additional paid-in capital in the financial statements, reflecting a change in accounting treatment from previous disclosures.

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