Virpax Pharmaceuticals, Inc. (NASDAQ:VRPX), a company focused on pharmaceutical preparations, reported significant corporate changes in a recent SEC filing. On Monday, the company's independent registered public accounting firm, EisnerAmper LLP, resigned. The resignation came after EisnerAmper's audit reports for the fiscal years ending December 31, 2023, and December 31, 2022, which included an explanatory paragraph regarding the company's ability to continue as a going concern but contained no adverse opinion or disagreements on accounting principles.
The company's Audit Committee and Board of Directors responded swiftly, appointing Bush & Associated CPA LLC as the new independent registered public accounting firm on Tuesday. Prior to this engagement, Virpax had not consulted with the new auditor on any accounting or auditing issues.
Additionally, Monday marked the departure of Eric Floyd, Chairman of the Board, who resigned due to disagreements with the Board's policies and operations. His concerns centered on salary reductions and the elimination of directors' and officers' insurance, which he believed could negatively affect the company's ability to retain key personnel and expose directors and officers to personal liability.
Floyd also stepped down from his roles as Chairman of the Scientific Technology Committee, Chairman of the Compensation Committee, and as a member of the Audit Committee.
The company has provided the SEC with a letter from EisnerAmper LLP to confirm the details of the accounting firm's resignation, as well as Eric Floyd's resignation letter. The changes in the company's certifying accountant and board composition are detailed in the SEC Form 8-K filed by Virpax Pharmaceuticals, Inc. on September 25, 2024.
In other recent news, Virpax Pharmaceuticals has seen a series of notable developments. The company announced an early repayment of a $2.525 million senior secured promissory note, indicating a robust financial strategy. In addition, Virpax issued nearly two million new shares of common stock following the exercise of previously issued warrants, resulting in an increase of approximately $2.7 million in proceeds.
Virpax Pharmaceuticals also reported positive results from a pilot study of its pain management product, Probudur, indicating the drug was well-tolerated and exhibited a slow-release profile without adverse effects. The company plans to file an Investigational New Drug Application for Probudur by the end of the year.
The pharmaceutical firm has also seen changes in its board, with the immediate resignation of Dr. Vanila M. Singh from its Board of Directors. The reasons for her departure have not been publicly disclosed, and the company has not yet announced a successor.
Virpax also received an extension until September 30, 2024, to meet Nasdaq's minimum stockholders' equity requirement. This comes after the company regained compliance with Nasdaq's minimum bid price requirement, ensuring its continued listing on the Nasdaq Stock Market.
InvestingPro Insights
In light of Virpax Pharmaceuticals' recent corporate changes, a look at the company’s financial health and market performance offers additional context for investors. According to InvestingPro data, Virpax has a market capitalization of $3.41 million, reflecting its position in the market. Despite challenging conditions, one of the InvestingPro Tips highlights a silver lining: the company holds more cash than debt on its balance sheet, which could provide some financial flexibility.
However, Virpax's stock has experienced significant volatility, with a notable decline over various time frames, including a one-week price total return of -8.58% and a one-year price total return of -91.02%. This trend aligns with another InvestingPro Tip, which points out that the stock has taken a big hit over the last week and has generally traded with high price volatility. Moreover, the company’s stock price is currently at 7.72% of its 52-week high, with a previous close at $0.69.
For investors seeking more comprehensive insights, there are additional InvestingPro Tips available that delve into Virpax’s performance and prospects. These tips include analysis of the company's gross profit margins, short-term liquidity, and profitability over the last twelve months. For further details, investors can visit InvestingPro for a total of 11 tips to better understand Virpax Pharmaceuticals’ financial position and stock performance.
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