MYND ANALYTICS, INC. (OTCMKTS:MYAN) 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.
Restatement of Financial Statements relating to
Classification of Commitment Shares
On December 6, 2016, MYnd Analytics, Inc. (the Company), entered
into a Common Stock Purchase Agreement (the Purchase Agreement)
with Aspire Capital Fund LLC (Aspire Capital). Upon the terms and
subject to the conditions and limitations set forth in the
Purchase Agreement, Aspire Capital is committed to purchase up to
an aggregate of $10 million of the Company’s common stock over a
period of approximately 30 months, at the Company’s sole
discretion. In connection with the Purchase Agreement, the
Company issued 80,000 shares of common stock to Aspire Capital as
commitment shares (the Commitment Shares). The Company reported
the issuance of the Commitment Shares in its Quarterly Report on
Form 10-Q for the quarter ended December 31, 2016 (the Original
10-Q) as a non-cash prepaid other asset on each of its condensed
consolidated balance sheets, consolidated statement of cash flows
and consolidated statements of stockholders equity, at their fair
market value of $708,000, of which, $23,600 was amortized as an
expense on the condensed consolidated statement of operations.
However, on March 24, 2017, the Company’s chief financial
officer, after consulting with representatives from Anton Chia
LLP, the Company’s independent registered public accounting
firm, determined that the financial statements in the Original
10-Q should no longer be relied upon since the correct accounting
treatment under ASC 340-10-S99-1/SAB Topic 5.A is to reflect the
entire value of the issued Commitment Shares as offering costs
netted against additional paid in capital as part of stockholders
equity. As a result, the Company will restate its condensed
consolidated statement of operations, consolidated balance
sheets, consolidated statement of cash flows and consolidated
statements of stockholders equity for the quarter ended December
31, 2016 to reclassify the value of the Commitment Shares and
reverse the recorded amortization expense. The amended quarterly
report on Form 10-Q/A for the quarter ended December 31, 2016
will reflect the proper accounting treatment of the issuance of
the Commitment Shares and the effect thereof on the Company’s
accompanying condensed consolidated financial statements, notes
to the condensed consolidated financial statements and
managements discussion and analysis. The incorrectly classified
balance sheet item was non-cash in nature and our original report
did not overstate available cash and cash equivalents nor did it
understate our losses for the period.
About MYND ANALYTICS, INC. (OTCMKTS:MYAN)
MYnd Analytics, Inc., formerly CNS Response, Inc., is a cloud-based predictive analytics company that provides objective clinical decision support to mental healthcare providers for the treatment of behavioral disorders, including depression, anxiety, bipolar disorder and post-traumatic stress disorder (PTSD). It uses its neurometric platform, PEER Online, to generate Psychiatric Electroencephalogram, Evaluation Registry Reports to predict the likelihood of response by an individual to certain medications for the treatment of behavioral disorders. The Company’s technology helps in evaluating pharmacotherapy options in patients suffering from non-psychotic behavioral disorders. PEER provides medical professionals with medication sensitivity data for a subject patient based upon the identification and correlation of treatment outcome information from other patients with similar neurophysiologic characteristics. This treatment outcome information is contained in the PEER Online database. MYND ANALYTICS, INC. (OTCMKTS:MYAN) Recent Trading Information
MYND ANALYTICS, INC. (OTCMKTS:MYAN) closed its last trading session down -0.10 at 5.90 with 10,950 shares trading hands.