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MiMedx to restate certain historical financial statements
As previously announced, the Audit Committee has been conducting an independent investigation into current and prior-period matters relating to certain sales and distribution practices and other matters. The determination of the need to restate was based on investigation results to date, which have primarily been focused on the accounting treatment afforded to such sales and distribution practices for two distributors for which certain implicit arrangements modified the explicit terms of the contracts, impacting revenue recognition during specified periods.
The Audit Committee investigation is ongoing, continues to evaluate sales and distribution practices at other distributors and customers, and may ultimately result in the identification of additional issues, broaden the scope of financial items or periods required to be restated, may result in additional actions taken by the Company, and may affect the preliminary conclusions expressed above. The Company does not intend to provide additional updates on the results of the investigation until it is concluded or the Company determines that further disclosure is appropriate or necessary.
Although the Company cannot at this time estimate when it will file its restated financial statements and Annual Report on Form 10-K for the year ended
Additional information relating to the Restatement will be disclosed in the Company's Current Report on Form 8-K that will be filed with the
Interim Chief Financial Officer
The Company also today announced that
The Company is initiating a search process to identify permanent replacements for these positions.
In addition to assuming the responsibilities of Chief Financial Officer, Mr. Borkowski will also oversee
Mr. Petit commented, "We are pleased to have Ed, a seasoned and accomplished healthcare and pharmaceutical executive, take on an important leadership role at our company during this transition period. His integrity, work ethic and business acumen will be critical to spearheading our key priorities, including our efforts to issue restated financials."
Mr. Borkowski is a seasoned healthcare and pharmaceutical executive with over 31 years of public company audit and accounting experience. Over the course of his career, he has spent 21 years at major pharmaceutical and healthcare related companies, during more than 10 of which he served as Chief Financial Officer at several multi-billion dollar companies. Mr. Borkowski serves as the Chairman of AzurRx, and is a director at
Shareholder Conference Call
MiMedx® is a leading biopharmaceutical company developing and marketing regenerative and therapeutic biologics utilizing human placental tissue allografts with patent-protected processes for multiple sectors of healthcare. "Innovations in Regenerative Medicine" is the framework behind the Company's mission to give physicians products and tissues to help the body heal itself. The Company processes the human placental tissue utilizing its proprietary PURION® Process methodology, among other processes, to produce safe and effective allografts by employing aseptic processing techniques in addition to terminal sterilization.
Safe Harbor Statement
This press release includes forward-looking statements that may be identified by words such as "believe," "expect," "may," "plan," "potential," "will," "preliminary," and similar expressions, and are based on management's current beliefs and expectations. Forward-looking statements are subject to risks and uncertainties, and the Company cautions investors against placing undue reliance on such statements.
Actual results may differ materially from those set forth in the forward-looking statements. For more detailed information on the risks and uncertainties, please review the Risk Factors section of the Company's most recent annual report or quarterly report filed with the