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Cancer Genetics down 32% on material weakness disclosure and increased A/R

Published 04/03/2018, 11:31 AM
© Reuters.  Cancer Genetics down 32% on material weakness disclosure and increased A/R
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  • Thinly traded nano cap Cancer Genetics (CGIX -31.8%) is down on more than a 7x surge in volume in response to its announcement of Q4 and 2017 results.
  • For the year, sales were up 7.7% to $26.1M, net loss worsened 32.1% to ($20.9M) and cash consumption improved 24.0% to ($13.6M).
  • The company disclosed that accounts receivable expanded to ~$16M before adjustments due to disruptions in collections in its Clinical Services unit. It recorded a bad debt expense of $4.4M and wrote off $1.8M in A/R in Q4.
  • It also disclosed a material weakness in its controls over financial reporting as well as a going concern paragraph from its auditor.
  • Management has engaged Raymond James to assist in the evaluation of strategic alternatives, including an outright sale of the company.
  • Now read: Catalyst (CBIO) Presents At Needham and Company 17th Annual Healthcare Conference - Slideshow


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