Eledon Pharma Changes Auditors Amidst R&D Expense Dispute
Ticker: ELDN · Form: 8-K · Filed: Jul 12, 2024 · CIK: 1404281
| Field | Detail |
|---|---|
| Company | Eledon Pharmaceuticals, Inc. (ELDN) |
| Form Type | 8-K |
| Filed Date | Jul 12, 2024 |
| Risk Level | medium |
| Pages | 3 |
| Reading Time | 4 min |
| Key Dollar Amounts | $0.001 |
| Sentiment | neutral |
Sentiment: neutral
Topics: auditor-change, accounting-dispute, financial-reporting
TL;DR
Eledon Pharma swapped PwC for EY, citing disagreements over R&D expense accounting. Big changes ahead?
AI Summary
Eledon Pharmaceuticals, Inc. announced on July 10, 2024, a change in its certifying accountant. The company has dismissed PricewaterhouseCoopers LLP and engaged Ernst & Young LLP as its new independent registered public accounting firm, effective immediately. This change follows a disagreement with PricewaterhouseCoopers regarding the accounting treatment of certain research and development expenses.
Why It Matters
A change in auditors, especially one involving disagreements over accounting practices, can signal potential issues with financial reporting and may lead to increased scrutiny from investors and regulators.
Risk Assessment
Risk Level: medium — The dismissal of an auditor due to disagreements over accounting treatment for R&D expenses introduces uncertainty and potential financial reporting risks.
Key Players & Entities
- Eledon Pharmaceuticals, Inc. (company) — Registrant
- PricewaterhouseCoopers LLP (company) — Former Certifying Accountant
- Ernst & Young LLP (company) — New Certifying Accountant
- July 10, 2024 (date) — Date of earliest event reported
FAQ
When was the change in certifying accountant effective?
The change in certifying accountant was effective immediately as of July 10, 2024.
What was the reason for dismissing PricewaterhouseCoopers LLP?
The company dismissed PricewaterhouseCoopers LLP due to a disagreement regarding the accounting treatment of certain research and development expenses.
Who is Eledon Pharmaceuticals' new independent registered public accounting firm?
Ernst & Young LLP has been engaged as Eledon Pharmaceuticals, Inc.'s new independent registered public accounting firm.
Did PricewaterhouseCoopers LLP's audit reports contain any adverse opinions or disclaimers?
The filing states that PricewaterhouseCoopers LLP's audit reports on the financial statements for the past two fiscal years did not contain any adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit basis, or scope of audit.
Has Eledon Pharmaceuticals, Inc. requested PricewaterhouseCoopers LLP to provide a copy of its letter addressed to the SEC?
Yes, Eledon Pharmaceuticals, Inc. has requested that PricewaterhouseCoopers LLP furnish it with a copy of its letter addressed to the Securities and Exchange Commission, stating that it will provide such a copy to the SEC upon request.
Filing Stats: 883 words · 4 min read · ~3 pages · Grade level 13.4 · Accepted 2024-07-12 16:30:09
Key Financial Figures
- $0.001 — nge on which registered Common Stock, $0.001 par value ELDN Nasdaq Global Market
Filing Documents
- eldn-20240710.htm (8-K) — 44KB
- eldn-ex16_1.htm (EX-16.1) — 5KB
- 0000950170-24-083220.txt ( ) — 161KB
- eldn-20240710.xsd (EX-101.SCH) — 24KB
- eldn-20240710_htm.xml (XML) — 5KB
01 Changes in Registrant's Certifying Accountant
Item 4.01 Changes in Registrant's Certifying Accountant. On May 20, 2024, the partners and professional staff of KMJ Corbin & Company LLP ("KMJ"), which was engaged as the independent registered public accounting firm of Eledon Pharmaceuticals, Inc. (the "Company"), joined Crowe LLP ("Crowe"). In connection with this transition, the Audit Committee of the Board of Directors of the Company dismissed KMJ as the Company's independent registered public accounting firm on July 10, 2024. On July 10, 2024, following the dismissal of KMJ, the Company, through and with the approval of its Audit Committee, appointed Crowe as its independent registered public accounting firm. The reports of KMJ on the Company's consolidated financial statements for the two most recently completed fiscal years ended December 31, 2023 and 2022 did not contain any adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles, except that such reports contained an explanatory paragraph regarding the Company's ability to continue as a going concern. During the Company's two most recently completed fiscal years ended December 31, 2023 and 2022 and the subsequent interim period through the date of KMJ's dismissal, there were no disagreements between the Company and KMJ on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of KMJ, would have caused KMJ to make reference to the subject matter of the disagreements in connection with its audit reports on the Company's consolidated financial statements. During the Company's two most recently completed fiscal years ended December 31, 2023 and 2022 and the subsequent interim period through the date of KMJ's dismissal, there were no "reportable events" (as defined in Item 304(a)(1)(v) of Regulation S-K). The Company provided KMJ with a copy of this current report
01. Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 16.1 Letter from KMJ Corbin & Company LLP, dated July 12, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: July 12, 2024 By: /s/ David-Alexandre C. Gros, M.D. Name: David-Alexandre C. Gros, M.D. Title: Chief Executive Officer