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Investing.com -- Maravai LifeSciences Holdings, Inc. (NASDAQ: MRVI) stock fell 15% after the company announced it is postponing its fourth quarter and full year 2024 earnings release and conference call. The life science reagent provider cited the need for additional time to complete its year-end financial close process, including the assessment of a potential non-cash impairment charge and an error in revenue recognition.
The delay has raised concerns among investors, leading to a significant drop in Maravai’s stock price during the trading session. The company stated it requires more time to evaluate a potential non-cash impairment charge related to goodwill from its acquisition of Alphazyme LLC. Additionally, Maravai is addressing an error discovered during the year-end audit procedures. This error involved approximately $3.9 million in revenue being incorrectly recorded in the last week of the second quarter of 2024, instead of the correct timing in the first week of the third quarter upon customer receipt. The company emphasized that this misstep is not anticipated to affect its full-year 2024 revenue, which is still expected to be near the mid-point of its previously announced guidance range of $255.0 million and $265.0 million.
Moreover, Maravai is working to assess and potentially remediate a material weakness in its internal controls over revenue recognition. The company has filed a Form 12b-25 with the U.S. Securities and Exchange Commission to notify of the late filing of its annual report and plans to complete the filing of its 2024 Form 10-K by March 18, 2025, which is within the 15-day extension period.
While Maravai has not provided a specific date for the rescheduled earnings call, it has committed to holding it and filing the required annual report as soon as practicable. The company’s stock movement reflects investor unease with the delay and the issues that have caused it, as the market reacts to the uncertainty surrounding Maravai’s financial health and internal controls.
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