Ocugen Inc. (NASDAQ:OCGN), a biopharmaceutical company, disclosed today that it will restate its financial statements for specific periods due to identified accounting errors. The announcement, made in an 8K filing with the Securities and Exchange Commission, revealed inaccuracies in the application of U.S. Generally Accepted Accounting Principles (GAAP) to certain collaboration agreements.
The Audit Committee, with the recommendation of management and after consultation with Ernst & Young LLP, determined that the financial statements from January 1, 2020, up to the third quarter of 2023, were materially misstated and should not be relied upon.
This decision will lead to the restatement of the company's consolidated financial statements for the year ended December 31, 2022, and unaudited interim financial information for the first three quarters of both 2023 and 2022.
The errors primarily affect the accounting for estimated costs in one of its collaboration arrangements, which will result in changes to reported collaborative arrangement revenue, research and development expenses, other income (expense), net, and accrued expenses and other current liabilities.
While Ocugen has not yet provided an estimate of the anticipated changes in its results of operations for the year ended December 31, 2023, or any of the restated periods, the company stated that these errors are not expected to impact its cash position or financial projections.
Furthermore, the company identified a material weakness in its internal control over financial reporting and acknowledged that its internal control and disclosure controls and procedures were not effective as of December 31, 2023.
Ocugen has filed a Form 12b-25, notifying of its inability to timely file its 2023 Form 10-K due to the additional time required to correct the errors and prepare the restated financial statements. The company expects to file the 2023 Form 10-K by April 16, 2024, but it has cautioned that there can be no assurance of meeting this deadline or that no additional errors will be found.
The information for this article is based on a press release statement.
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