Alta Equipment Group Inc. and its subsidiaries (“Alta” or the “Company”) is engaged in the sale, service, and rental of material handling, construction, and environmental processing equipment in the states of Michigan, Illinois, Indiana, Ohio, Pennsylvania, New York, Virginia, Massachusetts, Maine, New Hampshire, Vermont, Rhode Island, Connecticut, Nevada, and Florida as well as the Canadian provinces of Quebec and Ontario. Unless the context otherwise requires, the use of the terms “the Company”, “we”, “us,” and “our” in these notes to the consolidated financial statements refers to Alta Equipment Group Inc. and its consolidated subsidiaries.

The accompanying consolidated financial statements include the consolidated accounts of the Company and its subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany transactions and balances have been eliminated in the preparation of the consolidated financial statements.

Subsequent to the issuance of the Company’s Consolidated Financial Statements filed on Form 10-K for the period ended December 31, 2023, the Company identified a multi-year error in the presentation of its Consolidated Statements of Cash Flows. Management determined its presentation of the proceeds from the sale of rent-to-rent equipment was incorrectly presented as an operating cash flow as opposed to an investing cash flow. The effect of this error was an overstatement of net cash provided by operating activities by $7.5 million and $5.4 million for the years ended December 31, 2022, and 2023, respectively, with a corresponding overstatement of net cash used in investing activities. Management has evaluated quantitative and qualitative factors for this misstatement and has concluded it was not material to the prior periods.

The following table reflects the effects of the correction on all affected line items of the Company’s previously reported Consolidated Financial Statements presented in this Form 10-K:


	Year Ended December 31,
	2023									2022
	As Previously Reported			Adjustment			As Restated			As Previously Reported		Adjustment			As Restated
OPERATING ACTIVITIES
Proceeds from sale of rental equipment - rent-to-sell	$	128.9		$	(5.4	)	$	123.5		$	133.1	$	(7.5	)	$	125.6
Net cash used in operating activities		63.8			(5.4	)		58.4			26.0		(7.5	)		18.5
INVESTING ACTIVITIES
Proceeds from sale of rental equipment - rent-to-rent		—			5.4			5.4			—		7.5			7.5
Net cash used in investing activities		(122.8	)		5.4			(117.4	)		162.6		7.5			(155.1	)

The Company has separately disclosed Rental fleet, net in its Consolidated Balance Sheet as of December 31, 2023, which was previously presented within Property and equipment, net in our 2023 Annual Report on Form 10-K. We have also updated all accompanying footnotes and disclosures affected by the reclassification.