{"schema_version":"secwatch.filing_event.v1","accession":"0001683168-24-001433","form_type":"8-K","ticker":null,"cik":"0000704562","company_name":"Avid Bioservices, Inc.","filed_at":"2024-03-12T23:59:59+00:00","discovered_at":"2026-05-14T18:03:26.705061+00:00","generated_at":"2026-06-04T23:31:47.866342+00:00","sec_items":["4.02"],"event_type":"other_material","sentiment":"negative","materiality_score":0.9,"calibrated_materiality_score":0.9,"confidence":"high","headline":"Avid restates financials after $1.4M note default; material weakness found","bullets":["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."],"urls":{"canonical":"https://secwatch.observer/filing/0001683168-24-001433","json":"https://secwatch.observer/filing/0001683168-24-001433.json","markdown":"https://secwatch.observer/filing/0001683168-24-001433.md","text":"https://secwatch.observer/filing/0001683168-24-001433.txt","edgar_index":"https://www.sec.gov/Archives/edgar/data/704562/000168316824001433/0001683168-24-001433-index.htm","edgar_primary_document":"https://www.sec.gov/Archives/edgar/data/704562/000168316824001433/avid_8k.htm"},"model":{"generated_by":"deepseek-v4-flash:cloud@v2","generated_at":"2026-06-04T23:31:47.866342+00:00"},"review":{"review_status":"machine_generated","human_reviewed":false,"corrected":false,"correction_note":null,"correction_timestamp":null,"superseded_by":null,"related_filings":[]},"source_grounded_claims":[{"claim_id":"a0968d582fae3a5b50a22e87233567e9c5127b06","claim":"Avid Bioservices, Inc. reported that prior financial statements should not be relied upon.","evidence_excerpt":"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.","evidence_source":"SEC 8-K Item 4.01/4.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/704562/000168316824001433/0001683168-24-001433-index.htm","confidence":0.9,"family_label":"Auditor Changes","details":[{"label":"Action","value":"non reliance"},{"label":"Auditor","value":"Ernst & Young LLP"}],"fact_type":"auditor_change"}],"license":"Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer"}