Amedica Corporation (NASDAQ:AMDA) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review

Amedica Corporation (NASDAQ:AMDA) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review

Story continues below

Item 4.02 Non-Reliance on Previously Issued Financial Statements
or a Related Audit Report or Completed Interim Review.

(a) On April 13, 2017, the Audit Committee of the board of
directors of Amedica Corporation (the Company) concluded that the
unaudited condensed consolidated financial statements filed on
November 14, 2016, in the Quarterly Report on Form 10-Q for the
quarter ended September 30, 2016 should no longer be relied upon.

During the preparation of its consolidated financial statements
for the fiscal year ended December 31, 2016, the Company
identified errors due to failure to record a one-time non-cash
charge of $3,779,000 for the deemed dividend related to the
accretion of a discount on conversion of Series A Preferred Stock
reported in its Quarterly Report on Form 10-Q for the quarter
ended September 30, 2016. Based on the Companys reassessment of
relevant accounting guidance the effect of this adjustment
results in an increase in the non-cash deemed dividend related to
the accretion of a discount on conversion of Series A Preferred
Stock. The increase in the deemed dividend went from a previously
reported amount $2,499,000 to $6,278,000, an increase of
$3,779,000. As a result of the adjustment, the net loss
attributable to common stockholders is $10,616,000 for the three
month period ended September 30, 2016 and $19,068,000 for the
nine month period ended September 30, 2016. The adjustment also
caused an increase in the per share net loss attributable to
common stockholders for the three month period ended September
30, 2016 from $0.30 to $0.46 and an increase in the per share net
loss attributable to common stockholders for the nine month
period ended September 30, 2016 from $0.97 to $1.21.

To correctly present the deemed dividend on Series A Preferred
Stock, net loss attributable to common stockholders and per share
net loss attributable to common stockholders, the Companys
interim unaudited condensed consolidated financial statements as
of and for the three and nine month periods ended September 30,
2016 will be restated in an amended Quarterly Report on Form
10-Q/A.

The registrants Audit Committee discussed the matters disclosed
in this Item 4.02 (a) with the registrants independent registered
public accounting firm, BDO USA, LLP.


About Amedica Corporation (NASDAQ:AMDA)

Amedica Corporation is a commercial biomaterial company. The Company is a vertically integrated silicon nitride orthopedic medical device manufacturer. It is focused on using its silicon nitride ceramic technology platform to develop, manufacture and sell a range of medical devices. It is also engaged in developing wear- and corrosion-resistant implant components for hip and knee arthroplasty. The Company markets its Valeo family of silicon nitride interbody spinal fusion devices in the United States, Europe and Brazil for use in the cervical and thoracolumbar areas of the spine. In addition to its silicon nitride-based spinal fusion products, it markets a line of non-silicon nitride spinal surgery products, which allows the Company to provide surgeons and hospitals with a solution for spinal procedures. Its Valeo interbody spinal fusion devices include Anterior Lumbar, Posterior Lumbar, Oblique Lumbar, Transforaminal Lumbar, Lateral Lumbar, Cervical and Corpectomy.

Amedica Corporation (NASDAQ:AMDA) Recent Trading Information

Amedica Corporation (NASDAQ:AMDA) closed its last trading session up +0.030 at 0.430 with 1,121,613 shares trading hands.

An ad to help with our costs