NervGen to Restate Previously Filed Financial Statements Recognizing Non-Cash Accounting Adjustments

The valuation revisions are expected to lower several reported balances without changing cash runway.

Rhea-AI Summary

NervGen (NGEN) will restate previously filed annual and quarterly financial statements to revise valuations of certain warrants and options. The restatement covers audited statements for the year ended December 31, 2025, and unaudited statements for the quarter ended June 30, 2026.

The revisions are expected to reduce previously reported stock-based compensation expense, warrant liabilities, non-cash operating expense and accumulated deficit. They will also adjust unrealized gains and losses on warrant derivatives. The changes are non-cash and do not affect cash and cash equivalents, cash runway or business operations. NervGen expects to complete the filings as soon as feasible and remains on track to report third-quarter 2026 results.

News Explained

The restatement also reaches back to 2024: NervGen expects its restated audited statements for the year ended December 31, 2025 to include restated 2024 comparative figures and an adjustment to opening balances as of January 1, 2024.

Market Context

The Aug 13 filing recorded a $19.4 million non-cash unrealized warrant-derivative loss, providing a ...

Analysis

The Aug 13 filing recorded a $19.4 million non-cash unrealized warrant-derivative loss, providing a directly related accounting precedent; this notice says the restatement adjustments do not affect cash, runway, or operations.

Historical Context

1 past event · Latest: Aug 13

1 event

1. Aug 13

   Quarterly financial results

   24h Move

   +0.0%

   Q2 filing recorded a $19.4 million non-cash unrealized loss on warrant derivatives.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

stock-based compensation, warrant liabilities, accumulated deficit, warrant derivatives

4 terms

stock-based compensation financial

"reduce previously reported stock-based compensation expense"

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

View in glossary

warrant liabilities financial

"stock-based compensation expense, warrant liabilities, and accumulated deficit"

Warrant liabilities are the financial obligations a company records when it grants warrants—special rights allowing someone to buy shares at a set price in the future. If the warrants are expected to be exercised, they are treated as a liability because the company might need to deliver shares or cash later. This matters to investors because it affects the company’s reported financial health and the potential dilution of existing shares.

accumulated deficit financial

"warrant liabilities, and accumulated deficit"

Accumulated deficit is the running total of a company’s past net losses minus any profits, showing how much the business has eaten into its own funds over time—think of it like a bank account that’s been overdrawn by repeated shortfalls. It matters to investors because a large accumulated deficit reduces the cushion that protects owners and creditors, can limit dividends or borrowing, and signals how much funding the company may need to reach profitability.

warrant derivatives financial

"adjustments to unrealized gains and losses on warrant derivatives"

Warrant derivatives are financial instruments that give the holder the right, but not the obligation, to buy a company’s stock at a fixed price before a set date; their value is tied to the underlying share price. Think of them as a coupon that can turn into shares if the stock rises, offering leveraged upside for buyers while posing greater risk and potential dilution to existing shareholders, so investors watch them for profit opportunities and impacts on share value.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Adjustments have no impact on cash and cash equivalents, cash runway, or business operations.
• Restatement is expected to reduce previously reported stock-based compensation expense, warrant liabilities, and accumulated deficit.

VANCOUVER, British Columbia, Sept. 25, 2026 (GLOBE NEWSWIRE) -- NervGen (NASDAQ: NGEN), a late-stage clinical biopharmaceutical company developing first-in-class neuroreparative therapeutics for spinal cord injury (SCI) and other neurotraumatic and neurologic conditions, today announced it will restate its audited annual financial statements for the year ended December 31, 2025, and its unaudited interim financial statements for the quarter ended June 30, 2026.

The restatement revises the valuation of certain warrants and options, reducing previously reported stock-based compensation expense and warrant liabilities, with corresponding adjustments to unrealized gains and losses on warrant derivatives. The adjustments are non-cash and are expected to reduce previously reported non-cash operating expense and accumulated deficit.

The adjustments have no impact on the Company’s cash and cash equivalents, cash runway, or business operations.

The Company expects to file restated audited financial statements and related management’s discussion and analysis for the year ended December 31, 2025, including restated 2024 comparative figures and an adjustment to January 1, 2024 opening balances. The Company also expects to file restated unaudited interim financial statements and related management’s discussion and analysis for the quarter ended June 30, 2026.

The Company expects to complete these filings as soon as feasible and remains on track to report its third quarter 2026 financial results.

About NervGen

NervGen (NASDAQ: NGEN) is a late-stage clinical biopharmaceutical company developing first-in-class neuroreparative therapeutics for spinal cord injury (SCI) and other neurotraumatic and neurologic conditions. The Company’s mission is to transform the lives of individuals living with SCI by enabling the nervous system to repair itself. NervGen’s lead therapeutic candidate, NVG-291, is a subcutaneously administered, neuroreparative peptide designed to target the inhibitory CSPG-PTPσ pathway. NVG-291 is the first pharmacologic candidate to improve function, independence, and quality of life in chronic SCI, as observed in the Phase 1b/2a CONNECT SCI study. NVG-291 has received Fast Track designation from the FDA and Orphan Drug designation from the European Medicines Agency for the treatment of SCI. Through NVG-291 and the Company’s next-generation candidate, NVG-300, NervGen is pursuing a pharmacologic approach to transform the treatment paradigm for neurotraumatic and neurologic conditions with significant unmet medical need. For more information, visit www.nervgen.com and follow NervGen on X and LinkedIn.

Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws (collectively, “forward-looking statements”). Statements regarding the Company’s current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements, and other future events or developments constitute forward-looking statements. The words “may”, “will”, “would”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “likely” or “potential”, or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. Forward-looking statements include, without limitation, statements relating to: the Company’s plans to restate previously issued financial statements and the scope and anticipated effects of the restatement; the expected non-cash nature of the adjustments and their effects on previously reported liabilities and other financial statement amounts; the expectation that the adjustments will have no impact on the Company’s cash, cash equivalents and marketable investments, cash runway or business operations; the anticipated timing of completing and filing the restated financial statements and related amended disclosures; the timing of reporting the Company’s third-quarter 2026 financial results; and other factors described in the “Risk Factors” section of the Company’s most recently filed Annual Information Form and Annual Report on Form 40-F, its management’s discussion and analysis for the year ended December 31, 2025, and subsequent filings with Canadian securities regulators and the U.S. Securities and Exchange Commission. These documents are available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the SEC’s website at www.sec.gov. Readers should not place undue reliance on forward-looking statements made in this news release. Unless otherwise stated, the forward-looking statements contained in this news release are made as of the date of this news release, and the Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Contacts
On365 Partners, Investor Relations
ir@nervgen.com
203.293.8091

David Schull or Ignacio Guerrero-Ros, Ph.D., Media
Russo Partners
David.Schull@russopartnersllc.com
Ignacio.Guerrero-Ros@russopartnersllc.com
858.717.2310

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Will NervGen's financial restatement affect its cash runway?

No. The adjustments are non-cash and do not affect NervGen's cash and cash equivalents, cash runway or business operations.

Will NervGen's restatement include changes to its 2024 figures?

Yes. NervGen expects its restated audited statements for the year ended December 31, 2025, to include restated 2024 comparative figures and an adjustment to January 1, 2024 opening balances.