Securities Investigation On Behalf of Shareholders of Apyx Medical Corporation – NASDAQ: APYX – Apyx Medical Will Restate Financials Which Can No Longer Be Relied Upon
Kehoe Law Firm, P.C. is making investors aware that it is investigating securities claims on behalf of investors of Apyx Medical Corporation (“Apyx Medical” or the “Company”) to determine whether Apyx Medical issued materially false or misleading business information to investors.
Apyx Medical Corporation Concludes That Its Previously Filed Financial Statements For The 12 Months Ended December 31, 2018 and The Quarterly Statements For The Three and Nine Months ended September 30, 2018 and Three Months Ended March 31, 2019 Can No Longer Be Relied Upon
On March 16, 2020, Apyx Medical stated (“Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review“):
On March 12, 2020, [Apyx Medical’s] Management and the Audit Committee of the Board of Directors, following discussion with our predecessor independent registered public accounting firm, concluded that the Company’s previously filed financial statements for the twelve months ended December, 31 2018 and the quarterly statements for the three and nine months ended September 30, 2018 and three months ended March 31, 2019, can no longer be relied upon as the result of the aggregation of errors identified by Management and the Company’s new accounting personnel during 2019 related to the following:
-The elimination of markup on intercompany sales from our subsidiary in Bulgaria,
-The collection and remission of employee’s income and payroll taxes related to the exercise of stock options in 2018 and 2019,
-Reporting the incorrect amount of income to employees on their form W-2 for both non-qualified and incentive stock option exercises and misclassification of some non-qualified stock option exercises as incentive stock option exercises,
-Accounting for stock-based compensation expense (related to forfeitures, vesting periods, modifications, fair value measurements and other miscellaneous items)
-Accounting for revenue and deferred expenses related to pre-developments activities in some of its OEM contracts
Additionally, on March 12, 2020 the Audit Committee of the Board of Directors discussed with the predecessor independent registered public accounting firm the matters to be disclosed in this 8-K.
As a result of the aforementioned items, the financial statements for the year ended December 31, 2018, and the three- and nine-month periods ended September 30, 2018 and three-month period ended March 31, 2019 will be restated. The Company anticipates filing the restated financial statements within the extension period allowed in accordance with Form 12b-25, however the time required to complete the restatements cannot be stated with full certainty at this time. [Emphasis added.]
On this news, Apyx Medical’s securities fell $0.23 per share, or more than 5%, to close at $4.36 per share on March 17, 2020.
Are You An Apyx Medical – APYX- Investor Who Has Suffered Losses?
Apyx Medical investors who have suffered losses are encouraged to contact Kehoe Law Firm, P.C, Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq, (215) 792-6676, Ext. 801, [email protected], to discuss potential legal claims.