Avid Bioservices, Inc.: auditor change — Avid restates financials after $1.4M note default; material weakness found

Avid Bioservices, Inc.

Holder of ≥25% of 1.250% Exchangeable Senior Notes due 2026 accelerated all notes due to missed legend removal and unpaid Additional Interest at 0.50% p.a.
Additional Interest accrued totaled approximately $1.4 million through February 29, 2024, triggering an event of default.
Audit Committee determined financial statements in Qs ending Oct 2022, Jan, Jul, Oct 2023 and FY 2023 are no longer reliable.
Company identified a material weakness in internal control over financial reporting related to note classification and disclosure.
Restated financials for affected periods will be filed via an amendment to FY 2023 10-K as soon as practicable.

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

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

Action: non reliance
Auditor: Ernst & Young LLP

Exact text from the filing

On March 11, 2024, the Audit Committee of the Company’s Board of Directors (the “Audit Committee”) determined, based on management’s recommendation and after consultation with Ernst & Young LLP, the Company’s independent registered public accounting firm, that as a result of the classification of the 2026 Notes as long-term liabilities, the consolidated financial statements included in the Relevant Reports should no longer be relied upon.

View on SEC.gov

Browse all auditor changes →

Source: SEC EDGAR

accession 0001683168-24-001433

view filing index on sec.gov

view primary document

Machine-readable: JSON · Markdown · Plain text

This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.