WALTHAM, MA – Spyre Therapeutics, Inc. (NASDAQ:SYRE), a pharmaceutical company, disclosed today that it will be amending its financial statements for the fiscal year 2023 and the first three quarters of 2024 due to errors in the calculation of net loss per share. The company's Audit Committee, in consultation with management and independent auditors, determined that the previously issued financial statements for the mentioned periods should no longer be relied upon.
The misapplication of U.S. GAAP was identified in relation to the treatment of Series A and Series B non-voting convertible preferred stock in the net loss per share calculations. This error does not affect the company's reported cash position or other financial data outside net loss per share figures.
The restated net loss per share amounts for the common and preferred stocks will be provided in the amended filings. For instance, the net loss per share for common stock for the three months ended September 30, 2024, will change from $(1.36) to $(42.24). The company intends to file the necessary amendments to its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as soon as possible.
Additionally, Spyre Therapeutics reported a material weakness in its internal control over financial reporting specifically related to the earnings per share calculation. The company is committed to remedying this weakness and believes that its remediation efforts will improve its internal control environment.
The company has communicated these issues with PricewaterhouseCoopers LLP, its independent registered public accounting firm. While Spyre Therapeutics expects to file an amendment to its Annual Report on Form 10-K/A on November 18, 2024, it cautions that this report contains forward-looking statements subject to risks and uncertainties.
This news is based on the recent 8-K filing by Spyre Therapeutics with the Securities and Exchange Commission.
InvestingPro Insights
In light of Spyre Therapeutics' recent disclosure regarding financial statement amendments, investors may find additional context from InvestingPro data and tips valuable. The company's market capitalization stands at $1.47 billion, reflecting its current valuation despite the accounting issues.
InvestingPro Tips highlight that Spyre Therapeutics holds more cash than debt on its balance sheet, which could provide some financial stability during this period of restatement. However, the company is not profitable over the last twelve months, and analysts do not anticipate profitability this year. This aligns with the reported net loss figures in the article and underscores the importance of accurate financial reporting.
The stock has experienced significant volatility, with InvestingPro data showing a 25.79% decline in the past week, likely influenced by the news of the financial restatement. Despite this recent setback, the stock has shown a remarkable 184.88% return over the past year, indicating investor optimism about the company's long-term prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Spyre Therapeutics, providing a deeper understanding of the company's financial health and market position.
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