---
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"
generated_at: "2026-06-04T23:31:47.866342+00:00"
event_type: "other_material"
sentiment: "negative"
materiality_score: 0.9
calibrated_materiality_score: 0.9
confidence: "high"
source: SEC EDGAR
---

# Avid restates financials after $1.4M note default; material weakness found

## Summary
- 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.

## SEC filing metadata
- accession: 0001683168-24-001433
- form_type: 8-K
- cik: 0000704562
- company_name: Avid Bioservices, Inc.
- filed_at: 2024-03-12T23:59:59+00:00
- event_type: other_material
- sentiment: negative
- materiality_score: 0.9
- calibrated_materiality_score: 0.9
- confidence: high
- sec_items: 4.02
- 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

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001683168-24-001433
- JSON: https://secwatch.observer/filing/0001683168-24-001433.json
- Plain text: https://secwatch.observer/filing/0001683168-24-001433.txt

## Key facts
- Auditor Changes
  Avid Bioservices, Inc. reported that prior financial statements should not be relied upon.
  - Action: non reliance
  - Auditor: Ernst & Young LLP
  source text: 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_url: https://www.sec.gov/Archives/edgar/data/704562/000168316824001433/0001683168-24-001433-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.