BiomX Announces Compliance with NYSE Guidelines on Audit Opinion Disclosure
- None.
- None.
The disclosure of a going concern qualification is a significant indicator of financial distress, which can have a profound effect on investor confidence and the company's ability to raise capital. In BiomX's situation, this qualification suggests that the accounting firm sees potential risks in the company's ability to continue as a viable entity in the foreseeable future. Investors and creditors often view this as a red flag, potentially leading to a drop in stock price and increased cost of borrowing.
It is essential to assess the liquidity position and cash flow projections of BiomX to understand the severity of the situation. If the company is in the midst of advancing novel therapies, it's likely that they are incurring substantial R&D expenses without immediate revenue streams. Investors should monitor subsequent quarterly reports and press releases for signs of improved financial health or further deterioration.
From a market perspective, the biotech sector is highly volatile and sensitive to risk-related news. A going concern qualification can impact not only BiomX but also its peers, as investors may become more cautious in investing in similar profiles within the industry. The announcement is likely to trigger a thorough review of BiomX's market position, its pipeline potential and the competitive landscape.
Understanding the company's strategic partnerships, intellectual property and the uniqueness of its phage therapy platform will be important in evaluating its long-term market potential. Despite the current financial warning, BiomX's innovative approach to targeting pathogenic bacteria could still represent a significant breakthrough, meriting close observation of their progress in clinical trials and any strategic moves they make to stabilize their financial position.
Compliance with NYSE American Company Guide Sections 401(h) and 610(b) indicates BiomX's commitment to transparency and regulatory adherence, which is a positive sign for governance. However, the legal implications of a going concern qualification may include increased scrutiny from regulators and potential challenges in future financings or contractual agreements.
Shareholders and potential investors should be aware of the increased risks associated with the company's financial stability. Furthermore, the company's management will need to be proactive in addressing these concerns, possibly through restructuring, seeking new funding sources, or accelerating product development to reach commercialization more rapidly.
CAMBRIDGE, Mass. and NESS ZIONA, Israel, April 04, 2024 (GLOBE NEWSWIRE) -- BiomX Inc. (NYSE American: PHGE) (“BiomX”), a clinical-stage company advancing novel natural and engineered phage therapies that target specific pathogenic bacteria, today announced that, as previously disclosed in its annual report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the Securities and Exchange Commission on April 4, 2024, the audit opinion contained a going concern qualification from the Company's independent registered public accounting firm. This announcement is being made solely to comply with the NYSE American Company Guide Sections 401(h) and 610(b), which require separate disclosure of receipt of an audit opinion that contains a going concern qualification. This announcement does not represent any change or amendment to the Company's 2023 audited financial statements or to its 2023 annual report on Form 10-K.
About BiomX
BiomX is a clinical-stage company developing both natural and engineered phage cocktails designed to target and destroy bacteria in the treatment of chronic diseases. BiomX discovers and validates proprietary bacterial targets and customizes phage compositions against these targets. For more information, please visit www.biomx.com, the content of which does not form a part of this press release.
Safe Harbor
This press release contains express or implied “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “target,” “believe,” “expect,” “will,” “may,” “anticipate,” “estimate,” “would,” “positioned,” “future,” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on BiomX management’s current beliefs, expectations and assumptions. In addition, past and current pre-clinical and clinical results, as well as compassionate use, are not indicative and do not guarantee future success of BiomX clinical trials. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of BiomX’s control. Actual results and outcomes may differ materially from those indicated in the forward-looking statements. Therefore, investors should not rely on any of these forward-looking statements and should review the risks and uncertainties described under the caption “Risk Factors” in BiomX’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on April 4, 2024, and additional disclosures BiomX makes in its other filings with the SEC, which are available on the SEC’s website at www.sec.gov. Forward-looking statements are made as of the date of this press release, and except as provided by law BiomX expressly disclaims any obligation or undertaking to update forward-looking statements.
BiomX Contacts:
Investor Relations:
LifeSci Advisors, LLC
John Mullaly
(617)-698-9253
jmullaly@lifesciadvisors.com
BiomX, Inc.
Anat Primovich
Corporate Project Manager
+972 (50) 697-7228
anatp@biomx.com
Source: BiomX Inc.
FAQ
What did BiomX Inc. (PHGE) announce regarding its annual report for the fiscal year ended December 31, 2023?
What is the significance of the going concern qualification mentioned in the PR?
Which regulatory requirements prompted BiomX Inc. (PHGE) to make the announcement?
Does the announcement of the going concern qualification impact BiomX Inc.'s (PHGE) 2023 financial statements?
