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NervGen restates financials after identifying material weaknesses in internal control over financial reporting
NGENNervgen Pharma Corp.
NervGen Pharma Corp. filed an amended Form 6-K to restate its unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2026, as well as its annual report for the year ended December 31, 2025. The restatement corrects material misstatements in warrant derivative liabilities, unrealized gains or losses on warrant derivatives, stock-based compensation expense, share issuance costs, and accumulated deficit. These errors stemmed from miscalculations of annualized volatility inputs used in Black-Scholes-Merton valuation models for options and warrants, as well as the incorrect classification of share issuance costs. The company identified material weaknesses in its internal control over financial reporting regarding valuation methodology documentation and segregation of duties within finance personnel. While the adjustments do not impact cash flows or liquidity, they significantly alter reported operating expenses and net income/loss figures. NervGen Pharma Corp. is a clinical-stage biopharmaceutical company developing neuroreparative therapeutics for spinal cord injury.