Biophytis to Restate Previously Issued Financial Statements
Biophytis today announced that the Company’s previously issued audited consolidated financial statements for the fiscal years ended December 31, 2019 and 2020 and unaudited consolidated financial statements for the six month periods ended June 30, 2021 and 2020 will be restated to correct the Company’s accounting treatment of its convertible notes.
These technical corrections relate to the inappropriate historical accounting practices relating to notes convertible into ordinary shares and/or redeemable for cash with attached warrants issued to convertible noteholders.
The Company is still in the process of evaluating the impact of these corrections on its financial statements for the affected periods, however the Company does not believe that the corrections will affect the Company’s cash position as at the end of the relevant accounting periods.
Consequently, the Company’s previously released financial statements for the affected time periods, the associated reports of the Company’s auditors and of the Company’s management and related press releases, or other communications describing Biophytis’s financial statements for the affected periods should no longer be relied upon as regards the impacted accounting items.
The Company is not currently aware of any other accounting corrections requiring adjustment to any prior period financial statements.
The Company expects, as soon as reasonably practicable, to file restated financial statements on Form 20-F/A for the years ended December 31, 2019 and 2020, and furnish restated financial statements for the half years ended June 30, 2020 and 2021 on Form 6-K. The Company also expects to publish shortly the management’s report for the six month period ended June 30, 2021, which will incorporate the restated financial statements.