The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation of the Company’s financial position and results of operations have been included for the periods presented herein. The notes that follow are an integral part of the Company’s consolidated financial statements.

Certain prior period amounts have been reclassified to conform to the current period presentation, the effect of which was not material to the Company’s consolidated financial statements.

The Company assessed the materiality of these errors on prior period consolidated financial statements in accordance with the Securities and Exchange Commission ("SEC") Staff Accounting Bulletin No. 99, "Materiality", codified in ASC 250, Accounting Changes and Error Corrections ("ASC 250"). Based on this assessment, management concluded that the error correction is not material to any previously presented interim or annual financial statements. The impact of the revisions to the quarterly periods ended March 31, 2023, June 30, 2023, September 30, 2023, March 31, 2024, June 30, 2024 and September 30, 2024 are presented in "Note 30 – Unaudited Quarterly Financial Information".

Revised Consolidated Statements of Income


		Year ended December 31, 2022
		As reported			Revision			As revised
Net sales	$		6,794	$		37	$		6,831
Cost of goods sold	$		5,178	$		37	$		5,215
Gross profit	$		1,616	$		—	$		1,616


		Year ended December 31, 2023
		As reported			Revision			As revised
Net sales	$		6,027	$		51	$		6,078
Cost of goods sold	$		4,721	$		51	$		4,772
Gross profit	$		1,306	$		—	$		1,306

On February 29, 2024, the Company announced that it needed additional time to complete its 2023 year-end reporting process, including its review of internal control over financial reporting as of December 31, 2023, and for the Audit Committee of the Board of Directors (the “Audit Committee”) to complete a related internal review (the “Audit Committee Internal Review”). The scope of the Audit Committee Internal Review included, among other things, reviewing (i) the process for reviewing reports made to the Chemours Ethics Hotline; (ii) the Company’s practice for managing working capital, including the related impact on metrics within the Company’s incentive plans; and (iii) certain non-GAAP metrics included in filings made with the Securities and Exchange Commission or otherwise publicly released, and related disclosures. 

The Audit Committee has completed its planned procedures with respect to the Internal Review and determined, among other things, based on the review conducted with the assistance of independent outside counsel, that:

Further discussion related to the Audit Committee Internal Review is included under the heading "Securities Related Litigation and Requests for Information Arising From Audit Committee Internal Review, and Related Indemnification Agreements" within "Note 22 – Commitments and Contingent Liabilities".

The Consolidated Statements of Operations for the year ended December 31, 2024 include a pre-tax benefit of $20 for insurance proceeds within selling, general and administrative expenses, net of third-party legal expenses of $6. In December 2024, Chemours and EIDP agreed to a 50/50 distribution of then-available funds within the previously established joint escrow account, with Chemours receiving $20, representing a release of previously recorded restricted cash. The Company recorded $20 in cash and cash equivalents at December 31, 2024 representing its interest in the escrow account established for these insurance proceeds.

The proceeds were recovered over a period of more than four years beginning in the second quarter 2020. Of the amounts recorded in the Consolidated Statement of Operations for the year ended December 31, 2024, $13 relates to amounts collected prior to January 1, 2024. The Company assessed the materiality of these out-of-period adjustments on current and prior period consolidated financial statements in accordance with the Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin No. 99, “Materiality,” codified in ASC 250, Accounting Changes and Error Corrections (“ASC 250”). Based on this assessment, management concluded that the amounts are not material to any previously presented interim or annual financial statements, or the current annual financial statements.

The Company believes it has sufficient liquidity, through future cash flows from operations, unrestricted cash on hand and availability under its revolving credit facility to timely settle its current liabilities through at least the end of February 2026, however, an adverse resolution of one or more legal or environmental matters could have a material adverse effect on the Company's liquidity.

As disclosed in "Note 22 – Commitments and Contingent Liabilities", the Company and certain of its subsidiaries are subject to various lawsuits, claims, assessments, government investigations, regulatory proceedings and other legal proceedings with respect to product liability, intellectual property, personal injury, commercial, contractual, employment, regulatory, environmental, anti-trust, and other such matters that arise in the ordinary course of business in multiple jurisdictions. The Company’s ability to timely settle its long term liabilities in the event such liabilities become current as a result of an adverse resolution of a legal matter will depend on its ability to generate sufficient future operating cash flows, resolve legal and environmental matters under acceptable terms and conditions and refinance its revolving credit facility and other long term debt on acceptable terms and conditions.

At December 31, 2024, the Company has $713 of unrestricted cash and cash equivalents, of which $404 is maintained at foreign subsidiaries. The Company anticipates generating additional positive cash flows from operations in 2025. The Company has $1,803 of current liabilities as of December 31, 2024. The Company also has $640 of availability under its revolving credit facility at December 31, 2024. The revolving credit facility contains terms that impact its capacity based in part on the Company’s twelve-month trailing EBITDA, as defined. The revolving credit facility matures on October 7, 2026. It is the Company’s intent to extend the maturity of the revolving credit facility, however, there is no assurance the Company will be able to extend the facility on acceptable terms and conditions, if at all. Accordingly, there are risks and uncertainties with respect to the Company’s ability to achieve its liquidity objectives.