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BALTIMORE, MD - TNF Pharmaceuticals, Inc. (NASDAQ:TNFA) announced the resignation of its previous independent registered public accounting firm, Morison Cogen LLP, effective as of Monday, due to the firm's decision to cease auditing publicly traded companies. The pharmaceutical company, which specializes in in vitro and in vivo diagnostic substances, stated that there were no disagreements or reportable events between the company and Morison Cogen that would have influenced their financial reporting or auditing processes.
The company's financial statements for the years ending December 31, 2023, and December 31, 2022, included a going concern note, which highlighted the company's net losses and negative cash flows but did not modify the auditor's opinion.
Following this change, TNF Pharmaceuticals has appointed Stephano Slack LLC as its new independent registered public accounting firm for the fiscal year ending December 31, 2024. This appointment was confirmed by the company's Audit Committee on Thursday. According to the press release, there were no consultations between the company and Stephano Slack during the past two fiscal years or the subsequent interim period regarding any accounting principles or transactions that would impact the company's financial statements.
The transition of auditing firms is a significant event for TNF Pharmaceuticals, as it ensures continuity in the company's financial oversight. The company has provided Morison Cogen with the disclosures regarding their resignation and has included Morison Cogen's letter to the U.S. Securities and Exchange Commission, dated today, as an exhibit in the 8-K filing. This corporate update is based on a press release statement.
In other recent news, TNF Pharmaceuticals has announced several key developments. The company has set its 2024 Annual Meeting of Stockholders for November 25, 2024, with a record date for voting stockholders as of October 18, 2024. Concurrently, TNF Pharmaceuticals has made amendments to the rights of its preferred stockholders, altering the method for calculating the issuance of additional preferred stock for dividend payments.
Further, the company has significantly expanded its authorized shares of common stock from 16,666,666 to a substantial 250,000,000, providing flexibility for future financial operations. TNF Pharmaceuticals has also undergone a rebranding to align with its focus on therapies targeting TNF-alpha and will now trade under the new symbol "TNFA" on the Nasdaq Capital Market.
InvestingPro Insights
The recent auditor change at TNF Pharmaceuticals comes amid challenging financial circumstances for the company. According to InvestingPro data, TNFA has a market capitalization of just $3.63 million, reflecting its small-cap status. The company's financial health appears precarious, with InvestingPro Tips indicating that it is not profitable over the last twelve months and suffers from weak gross profit margins.
The stock's performance has been notably poor, with InvestingPro data showing a staggering year-to-date price total return of -81.7% as of the most recent data. This aligns with the InvestingPro Tip that the stock price has fallen significantly over the last year. The company's price-to-book ratio stands at a concerning -78.64, further underscoring the financial challenges faced by TNFA.
On a positive note, an InvestingPro Tip reveals that TNFA holds more cash than debt on its balance sheet, which could provide some financial flexibility as it navigates its current difficulties. This information is particularly relevant given the going concern note mentioned in the company's recent financial statements.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for TNFA, which could provide further insights into the company's financial situation and prospects.
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