Bioxytran, Inc. (OTCQB:BIXT), a pharmaceutical company based in Needham, Massachusetts, announced today that it is restating its financial statements for the years ended December 31, 2023, and 2022. The company has determined that its previously issued financial statements for these periods should no longer be relied upon due to misapplication in the guidance around the valuation of certain outstanding shares.
The restatement follows the May 3, 2024, SEC order against BF Borgers CPA PC and its sole audit partner, which has resulted in the auditor being denied the privilege of appearing or practicing before the Commission. Consequently, Bioxytran engaged Fruci & Associates II, PLLC, to re-audit the financials, leading to the discovery of inaccuracies in share valuation and timing issues in accruals.
The restated financials, disclosed in the company's Form 10-K/A filed today, show an increase in the loss of issuance line item by $212,458 for the year ended December 31, 2023, with a corresponding adjustment in Additional Paid in Capital (APIC). Compensation expense for the same year has been reduced by $19,935. The company also reclassified $300,000 in R&D expense to other income for the year ended December 31, 2022. These adjustments have not affected the net cash flows from operating, investing, or financing activities.
The company has corrected the share count for December 31, 2022, by 93,750 shares and reduced the share count for December 31, 2023, by 1,000,000 shares. The weighted average number of common shares outstanding has been adjusted accordingly for both years.
Bioxytran has also addressed insufficient accruals for intellectual property and corrected the classification of warrant forfeiture and issuance fees. The restatement includes adjustments to the balance sheet, statement of operations, and cash flows to reflect the corrected valuations and accrual timings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.