AKERS BIOSCIENCES, INC. (NASDAQ:AKER) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review

AKERS BIOSCIENCES, INC. (NASDAQ:AKER) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
Item 4.02 Non-Reliance on Previously Issued Financial Statements

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On June 18, 2018, the Audit Committee of the Board of Directors (the “Audit Committee”) was advised by the Company’s independent registered public accounting firm, Morison Cogen LLP (“Morison”), that the following previously filed financial statements of the Company should not be relied upon:

(i) The Company’s audited consolidated financial statements for the fiscal year ended December 31, 2017, contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, originally filed with the Securities and Exchange Commission (“SEC”) on April 3, 2018 (the “Annual Report”),
(ii) The Company’s unaudited financial statement for the quarterly period ended September 30, 2017, contained in the Company’s Quarterly Report on Form 10-Q, originally filed with the SEC on November 14, 2017 (the “Q3 Report”); and
(iii) The Company’s unaudited financial statement for the quarterly period ended June 30, 2017, contained in the Company’s Quarterly Report on Form 10-Q, originally filed with the SEC on August 14, 2017 (the “Q2 Report”, which along with the Q3 Report and the Annual Report are referred to herein as the “Reports”).

Subsequent to the filing of the Annual Report certain information came to the attention of the Audit Committee that certain 2017 revenue transactions did not qualify for revenue recognition under generally accepted accounting principles. The Audit Committee is overseeing an investigation of these matters with assistance of Morison, outside counsel and forensic accountants.

The Company will, as soon as is practicable, make the appropriate adjustments to the above referenced Reports by filing with the SEC amendments to the Reports which, in each case, will include restated consolidated financial statements and notes thereto and any other appropriate revisions.

The Company’s Audit Committee discussed the matters described in this Item 4.02 with representatives of Morison. In accordance with Item 4.02(c) of Form 8-K, the Company provided Morison with a copy of the statements set forth in this Item 4.02 prior to the filing of this Report with the SEC. The Company requested that Morison furnish the Company with a letter addressed to the SEC stating whether Morison agrees with the above statements in this Item 4.02 as required by SEC rules. Morison has furnished the requested letter, and it is attached as an Exhibit 7.1 to this Report.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Cautionary Note Regarding Forward-Looking Statements

This Current Report on Form 8-K, the press release included herein, and any statements of representatives and partners of the Company related thereto contain, or may contain, among other things, certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company’s plans, objectives, projections, expectations and intentions and other statements identified by words such as “projects,” “may,” “will,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “potential” or similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission. Actual results (including, without limitation the timing for and results of the Company’s pending restatement, including the actual amounts deferred and recognized once such amounts are subject to audit) may differ significantly from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control). The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.


Akers Biosciences, Inc. Exhibit
EX-7.1 2 ex7-1.htm   Exhibit 7.1   June 19,…
To view the full exhibit click here

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