Business Context and Reporting Period
Company: ASTROTECH Corp
Filing Type: Form 8-K (Current Report)
Date of Report: February 7, 2018
Subject: Non-reliance on previously issued financial statements for the quarter ended September 30, 2017.
Key Financial Metrics
This filing does not report new revenue, profit, cash flow, or debt figures. It addresses a specific calculation error regarding Net Loss per Common Share in the Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended September 30, 2017, and 2016.
Material Changes
- Restatement Trigger: The Audit Committee concluded that the interim financial statements in the Form 10-Q for the quarter ended September 30, 2017, should no longer be relied upon.
- Root Cause: The error was inadvertently caused by a reverse stock split that occurred after the end of the quarter, affecting the calculation of Net Loss per Common Share.
- Corrective Action: The Company is amending its Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, to correct these figures.
Management Commentary, Risks, and Controls
- Internal Controls: Management concluded that the Company's internal control over financial reporting and disclosure controls and procedures were not effective as of the end of the applicable restatement period due to the error.
- Future Disclosures: The Company will amend disclosures pertaining to the evaluation of controls and procedures in connection with the amended filing.
- Auditor Involvement: The Audit Committee and management discussed these matters with the independent registered public accounting firm, BDO USA, LLP.
Investor Verification Checklist
- Verify the amended Form 10-Q for the quarter ended September 30, 2017, once filed.
- Confirm the corrected Net Loss per Common Share figures for the periods ended September 30, 2017, and 2016.
- Review the updated assessment of internal controls over financial reporting in the amended filing.
- Monitor for any further disclosures regarding the reverse stock split impact on historical data.