APTEVO THERAPEUTICS INC. (NASDAQ:APVO) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review

ME Staff 8-k

8 years ago

APTEVO THERAPEUTICS INC. (NASDAQ:APVO) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review

Item 4.02(a)

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

On March 30, 2017, the board of directors and the audit committee
of Aptevo Therapeutics Inc. (the Company), in consultation with
management, concluded that: (i) the Companys audited financial
statements for the year ended December 31, 2015 and unaudited
financial information for the quarter ended March 31, 2016
included in the Companys Registration Statement on Form 10 filed
with the Securities and Exchange Commission (the SEC) on July 13,
2016 and (ii) the Companys unaudited financial information for
the quarters ended June 30, 2016 and September 30, 2016 included
in the Companys Quarterly Reports on Form 10-Q for the quarters
ended June 30, 2016 and September 30, 2016 filed with the SEC on
August 25, 2016 and November 14, 2016, respectively, should no
longer be relied upon due to errors identified therein.

The errors were identified in the course of preparing the
Companys audited financial statements for the year ended December
31, 2016 and relate to the accounting treatment of certain
deferred tax liabilities.The errors did not impact the Companys
net loss, revenues, or stockholders equity, but required the
restatement of Companys previously issued financial statements,
as described below.

Our December 31, 2015 financial statements include $41.8 million
of intangible assets which resulted from the acquisition of
in-process research and development (IPRD) programs related to
TRU-016, a novel CD37-directed therapy for B-cell malignancies,
such as chronic lymphocytic leukemia and non-Hodgkins lymphoma.
This amount was deemed to be an indefinite-lived asset, to remain
as an indefinite-lived asset on the balance sheet until
completion or abandonment of the associated research and
development efforts. Following the spin-off of the Company in
August 2016, the Company conducted an internal review of all
deferred tax assets and liabilities acquired and it was
determined that a deferred tax liability should have been
recorded associated with the difference between the book basis
and the tax basis of the asset as a part of the acquisition in
2010.The error has no effect on the net assets distributed in the
spin-off.

The Company, in its Annual Report on Form 10-K for the year ended
December 31, 2016, has corrected its financial statements for the
affected periods, consisting of:

adjustments to the balance sheets as of December 31,
2015, March 31, 2016 and June 30, 2016 to increase
deferred tax liabilities by $15.3 million and to make a
corresponding $15.3 million increase in goodwill; and

adjustments to the statement of operations for the three
and nine months ended September 30, 3016 to increase each
of (i) the amount of impairment expense, (ii) loss from
operations, (iii) loss before income tax and (iv) benefit
from income tax by $15.3 million. Net loss is not
affected by these adjustments.

The Company does not intend to file amendments to any prior SEC
filings for the periods through September 30, 2016.

The board of directors, the audit committee of the board of
directors and management have discussed the matters disclosed in
this Item 4.02(a) of this Current Report on Form 8-K with the
Companys independent registered public accounting firm.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number

Description

99.1	Press Release dated March 31, 2017

About APTEVO THERAPEUTICS INC. (NASDAQ:APVO)
Aptevo Therapeutics Inc. is a biotechnology company. The Company is focused on oncology and hematology therapeutics. The Company is engaged in the discovery, development, commercialization and sale of oncology and hematology therapeutics. The Company’s technology is the ADAPTIR (modular protein technology) platform. The Company has approximately four products in the areas of hematology and infectious diseases, as well as various investigational-stage product candidates in immuno-oncology. The Company’s investigational-stage product candidates include MOR209/ES414, ES210, ES425, Otlertuzumab and 5E3. Its technology can produce monospecific and multispecific immunotherapeutic proteins that bind to various targets. The Company’s marketed products are WinRho SDF (Rho(D) Immune Globulin Intravenous (Human)), HepaGam B (Hepatitis B Immune Globulin Intravenous (Human)), VARIZIG (Varicella Zoster Immune Globulin (Human)), and IXINITY (coagulation factor IX (recombinant)). APTEVO THERAPEUTICS INC. (NASDAQ:APVO) Recent Trading Information
APTEVO THERAPEUTICS INC. (NASDAQ:APVO) closed its last trading session down -0.07 at 1.89 with 78,153 shares trading hands.