In a recent shift in its financial oversight, Qualigen Therapeutics, Inc., a pharmaceutical company, has announced the appointment of WithumSmith+Brown, PC (Withum) as its new independent registered public accounting firm.
The decision, effective July 11, 2024, was approved by the audit committee of the company's board of directors and comes after the dismissal of its former auditor, Baker Tilly US, LLP (the "Former Auditor"), which had served the company since 2018.
The company's relationship with its former auditor concluded without any adverse opinion or disclaimer of opinion on the financial statements for the fiscal years ending December 31, 2023, and 2022. However, the reports included an explanatory paragraph highlighting substantial doubt about the company's ability to continue as a going concern.
During the tenure of the Former Auditor, there were no disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedure that would have necessitated a reference to the disagreements in any reports issued.
The Former Auditor did communicate a material weakness to the company's Audit Committee, which has been discussed, and the Former Auditor has been authorized to respond to inquiries from Withum regarding this matter. To affirm this, the Former Auditor has provided a letter, dated July 15, 2024, filed as Exhibit 99.1 with the Securities and Exchange Commission (SEC), stating their agreement with the statements made by the company in this report.
Withum has been engaged to audit and express an opinion on the consolidated financial statements of Qualigen Therapeutics for the year ending December 31, 2024. Prior to their engagement, the company did not consult Withum on any matters that would require disclosure under the SEC's regulations.
This corporate update is based on a press release statement from Qualigen Therapeutics, Inc., and provides a factual account of the company's change in its certifying accountant as reported to the SEC.
In other recent news, Qualigen Therapeutics has secured a $2 million loan through the issuance of a non-convertible senior note, according to recent SEC filings. The senior note, bearing an 18% annual interest rate, is set to mature on July 8, 2025, with the principal and interest payable at maturity.
Significant changes have occurred within Qualigen's board of directors, with the resignation of Richard David, Sidney Emery, Kurt Kruger, and Ira Ritter, and the subsequent appointment of Campbell Becher, Robert Lim, and Cody Price.
Furthermore, a warrant holder partially exercised their right to purchase shares of common stock, resulting in Qualigen Therapeutics now having 12,155,830 shares of common stock outstanding. Also noteworthy, the holder of Qualigen's 8% Senior Convertible Debenture due December 22, 2025, has fully converted the original principal balance of $3.3 million into Qualigen's common stock. These are among the recent developments for the company.
InvestingPro Insights
In light of Qualigen Therapeutics' recent auditor change, investors may be seeking additional context to understand the company's financial health. According to InvestingPro data, Qualigen has a market capitalization of approximately $3.73 million as of the last twelve months leading up to Q1 2024. It is worth noting that the company's stock has experienced significant volatility, with a one-week total return of 55.09% and a one-month total return of 118.14%, indicating a notable recent surge in the stock price.
Still, InvestingPro Tips suggest caution: the stock's RSI indicates it is in overbought territory, which may suggest a pullback could occur. Moreover, the company's short-term obligations exceed its liquid assets, which aligns with the previous auditor's concern about the ability to continue as a going concern. For those considering an investment in Qualigen, it is important to be aware that analysts do not anticipate the company will be profitable this year, and the company has not been profitable over the last twelve months.
For investors seeking a comprehensive analysis, there are additional InvestingPro Tips available that provide deeper insights into Qualigen's financials and forecasts. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and access the full range of expert tips and data to inform your investment decisions.
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