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NeOnc Technologies Holdings, Inc. (NASDAQ:NTHI), a small-cap biotech company with a market capitalization of $97.42 million, announced Monday that its unaudited consolidated financial statements for the quarter ended March 31, 2025, should no longer be relied upon and will be restated. The company cited an error related to the calculation of non-cash share-based compensation expense in its previously filed Form 10-Q. InvestingPro analysis indicates the company’s overall financial health score is currently weak at 1.57, with short-term obligations exceeding liquid assets.
According to a press release statement and SEC filing, NeOnc Technologies determined on August 13 that it had inadvertently overstated its non-cash share-based compensation expense for 1,486,667 restricted stock units (RSUs) granted to members of management on January 4, 2024. The error occurred because the company’s March 31, 2025 Form 10-Q incorrectly assumed those RSUs were fully vested as of that date, rather than vested over a 22-month period. As a result, the reported expense was higher than it should have been, as only 15 months of vesting should have been recognized by March 31, 2025.
Management, after discussions with the Audit Committee of the Board of Directors, concluded that the affected financial statements must be restated. The restatement is reflected in the company’s Form 10-Q for the quarter ended June 30, 2025.
NeOnc Technologies is incorporated in Delaware and is listed on the Nasdaq Stock Market under the ticker NTHI. The company’s principal executive offices are located in Calabasas, California.
This information is based on a statement in a press release and a filing with the Securities and Exchange Commission.
In other recent news, NeOnc Technologies Holdings, Inc. has finalized a $50 million investment from Quazar Investment following the incorporation of its subsidiary, NuroMENA Holdings Ltd., by the Abu Dhabi Global Market. This investment is set to accelerate the launch of NeOnc’s central nervous system platform across the Middle East and North Africa. Additionally, NeOnc has secured two National Institutes of Health grants totaling $2.5 million to further develop its cancer therapeutic compound, NEO212. This includes a $400,000 Phase 1 grant for preclinical studies and a $2.1 million Phase 2 grant for clinical development in newly diagnosed gliomas.
In other developments, NeOnc has entered into a definitive agreement to acquire intellectual property assets for $3.5 million. This acquisition involves 3D bioprinting, artificial intelligence, and quantum modeling technologies aimed at enhancing preclinical drug discovery for brain-targeted therapies. The transaction includes acquiring all equity interests in a to-be-formed Delaware entity owned by Dr. Ishwar K. Puri and Beth R. Levinson. These recent developments highlight NeOnc Technologies’ strategic efforts to expand its research and development capabilities.
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