Vistagen Therapeutics, Inc. (NASDAQ:VTGN), a biopharmaceutical company based in South San Francisco, has announced a change in its independent registered public accounting firm. On Monday, the company notified WithumSmith+Brown, PC (Withum) of its termination as the company's auditor, effective immediately. Subsequently, Vistagen has appointed KPMG LLP (KPMG) to take over the role for the fiscal year ending March 31, 2025.
The decision to switch auditors was made following a competitive selection process overseen by Vistagen's Audit Committee. Withum's reports on Vistagen's financial statements for the fiscal years ending March 31, 2023 and March 31, 2024, did not contain any adverse opinions or disclaimers. However, the report for the fiscal year ended March 31, 2023, included a going concern paragraph, which was absent in the subsequent year's report.
Vistagen confirmed that there were no disagreements with Withum on accounting principles or practices, financial statement disclosure, or auditing scope or procedure that would have required mention in Withum's reports on the company's financial statements for the mentioned fiscal years. Additionally, there were no reportable events as defined by the SEC regulations during those periods.
KPMG's engagement as the new auditor was approved by the Audit Committee on the same day Withum was dismissed. Prior to KPMG's appointment, Vistagen had not consulted with the firm on any accounting or auditing matters that would require disclosure in the SEC filings.
In compliance with SEC requirements, Vistagen provided Withum with the statements made in the 8-K filing and included a letter from Withum, dated July 10, 2024, as an exhibit to the filing, confirming their agreement with the statements made by Vistagen regarding their dismissal.
This transition in auditors comes as Vistagen continues to develop its pharmaceutical preparations. The company's SEC filing, which provides these details, is based on a press release statement.
In other recent news, Vistagen Therapeutics has made substantial progress in its clinical programs, particularly in the treatment of social anxiety disorder (SAD). The company reported positive results from its PALISADE-2 Phase 3 study of fasedienol, a drug candidate for SAD. This milestone marked the first positive Phase 3 study for SAD, leading to the initiation of the PALISADE-3 Phase 3 trial. These developments are part of Vistagen's ongoing efforts to secure FDA approval for the first-ever SAD treatment.
Vistagen's financial health also showed improvement, with a decrease in net loss and research and development expenses from the previous fiscal year. The company's cash and cash equivalents stood at $119.2 million as of March 31, 2024. In the future, Vistagen expects enhancements in trial design and execution, which are anticipated to increase efficiency and reduce variability.
These recent developments reaffirm Vistagen's commitment to advancing mental health treatments, particularly for conditions like SAD. The company's progress in its clinical trials and its improved financial health will be of interest to investors monitoring the pharmaceutical sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.