Arcellx, Inc. (ACLX): auditor change — Arcellx overstates R&D expense by $6.3M in Q1 2022, $7.7M in H1 2022; prior financials non-reliable

Arcellx, Inc.

Audit Committee concludes Q1 and Q2 2022 financials no longer reliable due to R&D expense accounting errors.
R&D expense overstated by $6.3M in Q1 2022 and $7.7M in first half of 2022; no impact on cash or cash flows.
Material weakness in internal control over financial reporting related to R&D expense accounting.
Company to file amended Form 10-Q/As for Q1 and Q2 2022, expects to file concurrently with Q3 2022 10-Q.
Cash position unchanged: $210.9M as of March 31, 2022 and $307.0M as of June 30, 2022.

item 4.02

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

Arcellx, Inc. reported that prior financial statements should not be relied upon.

Action: non reliance

Exact text from the filing

the Audit Committee of the Board of Directors of Arcellx, Inc., after discussion with management, concluded that (i) the Q1 2022 Financial Statements, included in the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (the “ SEC ”) on May 12, 2022, and (ii) the Q2 2022 Financial Statements included in the Quarterly Report on Form 10-Q filed with the SEC on August 15, 2022 should no longer be relied upon.

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Source: SEC EDGAR

accession 0001193125-22-281337

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