CAMBRIDGE, Mass. and NESS ZIONA, Israel - BiomX (NYSE:PHGE) Inc. (NYSE American: PHGE), a biotechnology company focusing on phage therapy development, announced today that its independent registered public accounting firm included a "going concern" qualification in its audit opinion. This disclosure follows the guidelines of the NYSE American Company Guide, necessitating a public announcement due to the nature of the audit opinion.
The qualification was mentioned in the company’s annual report on Form 10-K for the fiscal year that concluded on December 31, 2023, and filed with the Securities and Exchange Commission (SEC) today. It is important to note that this announcement does not reflect any amendments to BiomX’s 2023 audited financial statements or its annual report.
BiomX is currently in the clinical stage of developing phage therapies aimed at eradicating specific pathogenic bacteria linked to chronic diseases. The company utilizes both naturally occurring and engineered phages in its treatments.
BiomX’s latest financial disclosures and the auditor's concerns can be found in the SEC filings, which highlight potential risks and uncertainties facing the company. The details of these filings are available on the SEC’s website.
This news is based on a press release statement from BiomX Inc. and does not include any promotional content or endorsement of the company’s claims. The announcement serves to inform shareholders and the public of the audit opinion and to comply with regulatory requirements.
InvestingPro Insights
BiomX Inc. (NYSE American: PHGE), amidst the "going concern" qualification by its auditors, shows a market capitalization of $16.12 million, reflecting the size and scale of the company within the biotechnology sector. The company's financial health is under scrutiny, as indicated by the recent audit report, and InvestingPro data provides additional context to the auditor's concerns. With an adjusted price-to-earnings (P/E) ratio over the last twelve months as of Q4 2023 standing at -0.63, BiomX's stock performance and valuation metrics signal challenges in generating profitable growth.
InvestingPro Tips suggest that BiomX is quickly burning through cash and has suffered from weak gross profit margins. These factors, combined with the expectation that net income is likely to drop this year, paint a cautious picture for investors. In addition, analysts do not anticipate the company will be profitable within this fiscal year, which aligns with the concerns raised in the auditor's report. On the brighter side, the company has experienced a strong return over the last month with a 60.55% price total return, but this is set against a backdrop of high price volatility that the stock generally trades with.
For investors seeking a deeper understanding of BiomX's financial position and future prospects, InvestingPro offers a wealth of additional insights. With a total of 12 InvestingPro Tips available, investors can gain a more comprehensive view of the company's financial health and market performance. To access these insights, visit InvestingPro and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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