KANSAS CITY — Hostess Brands, Inc. has announced it intends to refile financial statements for its 2018, 2019 and 2020 fiscal years to take into consideration the Securities and Exchange Commission’s finding that certain Hostess warrants should have been classified as liabilities.

As a result of the restatement, Hostess said it expects to recognize incremental non-operating expenses or gains that will fluctuate based on the change in the fair value of the outstanding warrants classified as liabilities. The restatement is expected to result in an incremental non-operating gain of $35 million to $45 million, loss of $55 million to $65 million and gain of $75 million to $85 million for the years ended Dec. 31, 2020, 2019 and 2018, respectively.

Hostess said it expects that there will be no impact to its historically reported cash and cash equivalents, cash flows from operating, investing or financing activities or net leverage ratio. The company also expects there will be no changes to its non-GAAP financial measures, including adjusted net revenue, adjusted gross profit, adjusted operating income, adjusted net income, adjusted Class A net income, adjusted EBITDA and adjusted EPS.

“All estimates contained in this report are subject to change as management completes the Form 10-K/A, and the company’s independent registered accounting firm has not audited or reviewed these estimates or ranges,” Hostess noted in the SEC filing. “An audit of annual financial statements and/or review of quarterly financial statements could result in material changes to these ranges and estimates. The company’s management is also in the process of reassessing the effectiveness of the company’s internal control over financial reporting and its disclosure controls and procedures, including whether any material weakness exists.”