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Cellectar Biosciences (NASDAQ: CLRB) has received a delinquency notification from Nasdaq due to a delay in filing its Q2 2024 10-Q report. The delay is caused by the need to restate previously filed financial statements following a re-evaluation of accounting treatment for warrants issued in October 2022. The restatement affects audited financials for 2022-2023 and unaudited quarterly reports from Q1 2023 to Q1 2024.
Cellectar has until October 21, 2024, to submit a compliance plan to Nasdaq. If accepted, Nasdaq may grant an extension until February 17, 2025. The company expects to complete the restatement process in about six weeks, after which it will file the Q2 2024 10-Q. The notice does not currently affect Cellectar’s Nasdaq Capital Market listing.
Cellectar Biosciences (NASDAQ: CLRB) ha ricevuto una notifica di inadempienza da Nasdaq a causa di un ritardo nella presentazione del rapporto 10-Q per il secondo trimestre del 2024. Il ritardo è dovuto alla necessità di riemanare i bilanci precedentemente presentati a seguito di una rivalutazione del trattamento contabile per i warrant emessi nell’ottobre 2022. La riemissione influisce sui bilanci verificati per il 2022-2023 e sui rapporti trimestrali non verificati dal primo trimestre del 2023 al primo trimestre del 2024.
Cellectar ha tempo fino al 21 ottobre 2024 per presentare un piano di conformità a Nasdaq. Se accettato, Nasdaq potrebbe concedere un’estensione fino al 17 febbraio 2025. L’azienda prevede di completare il processo di riemissione in circa sei settimane, dopo di che presenterà il 10-Q per il secondo trimestre del 2024. La notifica non influisce attualmente sulla quotazione di Cellectar nel Nasdaq Capital Market.
Cellectar Biosciences (NASDAQ: CLRB) ha recibido una notificación de incumplimiento de Nasdaq debido a un retraso en la presentación de su informe 10-Q del segundo trimestre de 2024. El retraso se debe a la necesidad de reexpresar los estados financieros presentados anteriormente tras una reevaluación del tratamiento contable de las opciones emitidas en octubre de 2022. La reexpresión afecta a los estados financieros auditados para 2022-2023 y a los informes trimestrales no auditados desde el primer trimestre de 2023 hasta el primer trimestre de 2024.
Cellectar tiene hasta el 21 de octubre de 2024 para presentar un plan de cumplimiento a Nasdaq. Si se acepta, Nasdaq puede conceder una extensión hasta el 17 de febrero de 2025. La compañía espera completar el proceso de reexpresión en aproximadamente seis semanas, después de lo cual presentará el 10-Q del segundo trimestre de 2024. La notificación no afecta actualmente la cotización de Cellectar en el Nasdaq Capital Market.
Cellectar Biosciences (NASDAQ: CLRB)는 2024년 2분기 10-Q 보고서를 제출하는 데 지연으로 인해 Nasdaq으로부터 연체 통지를 받았습니다. 지연은 2022년 10월에 발행된 워런트에 대한 회계 처리 재평가의 필요성으로 인해 발생했습니다. 이 재표시는 2022-2023년에 대한 감사된 재무제표와 2023년 1분기부터 2024년 1분기까지의 비감사 분기 보고서에 영향을 미칩니다.
Cellectar는 2024년 10월 21일까지 Nasdaq에 준수 계획을 제출해야 합니다. 수락되면 Nasdaq은 2025년 2월 17일까지 연장할 수 있습니다. 회사는 약 6주 안에 재표시 프로세스를 완료할 것으로 예상하고 있으며, 그 후 2024년 2분기 10-Q를 제출할 예정입니다. 현재 이 통지는 Cellectar의 Nasdaq 자본 시장 상장에 영향을 미치지 않습니다.
Cellectar Biosciences (NASDAQ: CLRB) a reçu une notification de non-conformité de Nasdaq en raison d’un retard dans le dépôt de son rapport 10-Q du deuxième trimestre 2024. Ce retard est dû à la nécessité de réviser les états financiers précédemment déposés suite à une réévaluation du traitement comptable des bons de souscription émis en octobre 2022. La révision concerne les états financiers audités pour 2022-2023 et les rapports trimestriels non audités du premier trimestre 2023 au premier trimestre 2024.
Cellectar a jusqu’au 21 octobre 2024 pour soumettre un plan de conformité à Nasdaq. Si accepté, Nasdaq pourrait accorder une prolongation jusqu’au 17 février 2025. L’entreprise prévoit de terminer le processus de révision dans environ six semaines, après quoi elle déposera le 10-Q du deuxième trimestre 2024. La notification n’affecte pas actuellement la cotation de Cellectar sur le Nasdaq Capital Market.
Cellectar Biosciences (NASDAQ: CLRB) hat von Nasdaq eine Mitteilung über eine Zahlungsunfähigkeit erhalten, da die Einreichung des 10-Q-Berichts für das zweite Quartal 2024 verzögert wurde. Die Verzögerung ist auf die Notwendigkeit zurückzuführen, früher eingereichte Finanzberichte neu zu bewerten, aufgrund einer Überprüfung der Rechnungslegungsbehandlung für im Oktober 2022 ausgegebene Warrants. Die Neubewertung betrifft die geprüften Finanzzahlen für 2022-2023 und die nicht geprüften Quartalsberichte von Q1 2023 bis Q1 2024.
Cellectar hat bis zum 21. Oktober 2024 Zeit, um einen Compliance-Plan bei Nasdaq einzureichen. Wenn dieser akzeptiert wird, kann Nasdaq eine Verlängerung bis zum 17. Februar 2025 gewähren. Das Unternehmen erwartet, den Neubewertungsprozess in etwa sechs Wochen abzuschließen, nach dem es den 10-Q für das zweite Quartal 2024 einreichen wird. Die Mitteilung hat derzeit keine Auswirkungen auf die Nasdaq Capital Market-Notierung von Cellectar.
Positive
- The financial statement changes are expected to be non-cash and non-operating
- The company has a clear timeline for addressing the issue, expecting to complete the restatement process in about six weeks
- Cellectar’s listing on the Nasdaq Capital Market is not currently impacted by the notice
Negative
- Cellectar is not in compliance with Nasdaq’s periodic financial report filing requirement
- The company needs to restate financial statements for multiple periods, indicating potential accounting issues
- There is a risk of delisting if Nasdaq does not accept the compliance plan or if the company fails to meet extended deadlines
- The delay in financial reporting could impact investor confidence and potentially affect the stock price
This restatement of financial statements is a significant red flag for investors. The need to re-evaluate accounting treatment for warrants suggests potential internal control weaknesses. While the changes are expected to be non-cash and non-operating, they could still impact key financial metrics and investor confidence.
The delay in filing the Q2 2024 10-Q and the Nasdaq non-compliance notice add further pressure. Although Cellectar has time to submit a compliance plan, this situation creates uncertainty and may lead to increased scrutiny from regulators and investors. The 6-week estimated timeline for restatement seems optimistic given the complexity of the issue.
Investors should closely monitor the company’s progress in addressing these accounting issues and regaining Nasdaq compliance. This event may also impact Cellectar’s ability to raise capital in the near term, which is important for a late-stage biopharmaceutical company.
The restatement of financial statements raises potential legal and regulatory risks for Cellectar. While the company has disclosed the issue proactively, there’s still a risk of shareholder litigation or SEC investigation, especially if the restatement reveals significant discrepancies or impacts key financial metrics.
The company’s compliance with Nasdaq listing rules is now under scrutiny. Although Cellectar has been given time to submit a compliance plan, failure to meet Nasdaq’s requirements could lead to delisting proceedings. This would have severe consequences for the company’s ability to raise capital and maintain investor confidence.
Investors should be aware that the restatement process may uncover additional issues, potentially leading to further delays or complications. The company’s transparency and timeliness in addressing these issues will be important in mitigating legal and regulatory risks.
This financial restatement could significantly impact investor sentiment towards Cellectar. The biopharmaceutical sector relies heavily on investor confidence and accounting issues can erode trust quickly. We may see increased volatility in CLRB stock as the market digests this news and awaits the restated financials.
The timing is particularly challenging as Cellectar is in the late-stage clinical phase, typically a capital-intensive period. Any hesitation from investors or difficulty in raising funds could potentially delay clinical progress or force the company to seek less favorable financing options.
Competitors in the oncology space may gain an edge if Cellectar’s focus is diverted to resolving these financial issues. However, if the company can swiftly address the restatement and maintain its clinical timelines, the long-term impact on its market position might be Investors should closely monitor both the financial restatement process and any updates on clinical progress.
FLORHAM PARK, N.J., Aug. 23, 2024 (GLOBE NEWSWIRE) — Cellectar Biosciences, Inc. (NASDAQ: CLRB), a late-stage clinical biopharmaceutical company focused on the discovery, development, and commercialization of drugs for the treatment of cancer, today announced that the Company had received an expected delinquency notification letter (the “Notice”) from the Listing Qualifications Staff of the Nasdaq Stock Market LLC (“Nasdaq”) on August 20, 2024. The Notice indicated that the Company is not in compliance with the periodic financial report filing requirement set forth in Nasdaq Listing Rule 5250(c)(1) as a result of the Company’s delay in filing its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 (the “Second Quarter 10-Q”), by the applicable due date.
The delay in filing the Second Quarter 10-Q is a result of the Company’s need to restate certain previously filed financial statements. As was previously reported on Form 8-K filed with the U.S. Securities and Exchange Commission (SEC) on August 9, 2024, after engaging Deloitte & Touche LLP as the Company’s independent registered accounting firm the Company determined that it was necessary to re-evaluate its accounting treatment for warrants issued as part of a financing completed in October 2022. The financial statement changes are all expected to be non-cash and non-operating. The Company expects to restate the previously issued (i) audited consolidated financial statements for the fiscal years ended December 31, 2023 and 2022, contained in its Annual Reports on Form 10-K and (ii) unaudited interim condensed consolidated financial statements for the periods ending March 31, 2023, June 30, 2023, September 30, 2023, and March 31, 2024, contained in its Quarterly Reports on Form 10-Q (the “Previously Issued Statements”). Restating and filing the Previously Issued Statements must be completed prior to filing the Second Quarter 10-Q.
The Company has 60 calendar days, or until October 21, 2024, to submit a plan (“Plan”) to Nasdaq to regain compliance. If Nasdaq accepts the Plan, Nasdaq may grant an exception of up to 180 calendar days from the Form 10-Q’s due date, or until February 17, 2025, to regain compliance. If Nasdaq does not accept the Plan, the Company will have the opportunity to appeal that decision to a Nasdaq Hearings Panel.
The Notice does not impact the Company’s listing of its common stock on The Nasdaq Capital Market at this time. The Company expects the process of restating and filing the Previously Issued Statements will require approximately six weeks to complete, immediately after which it expects to file its Second Quarter 10-Q.
About Cellectar Biosciences, Inc.
Cellectar Biosciences is a late-stage clinical biopharmaceutical company focused on the discovery and development of proprietary drugs for the treatment of cancer, independently and through research and development collaborations. The company’s core objective is to leverage its proprietary Phospholipid Drug Conjugate™ (PDC) delivery platform to develop the next-generation of cancer cell-targeting treatments, delivering improved efficacy and better safety as a result of fewer off-target effects.
The company’s product pipeline includes lead asset iopofosine I 131, a small-molecule PDC designed to provide targeted delivery of iodine-131 (radioisotope), proprietary preclinical PDC chemotherapeutic programs and multiple partnered PDC assets.
For more information, please visit www.cellectar.com or join the conversation by liking and following us on the company’s social media channels: Twitter, LinkedIn, and Facebook.
Forward-Looking Statement Disclaimer
This news release contains forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company advises caution in reliance on forward-looking statements. Forward-looking statements include, without limitation: statements related to the completion of the Company’s review of accounting matters and audits of the Company’s financial statements, the Company’s plans to restate and file the Previously Issued Statements, and the preparation and filing the Second Quarter 10-Q. These forward-looking statements are made only as of the date hereof, and we disclaim any obligation to update any such forward-looking statements.
Contacts
MEDIA:
Claire LaCagnina
Bliss Bio Health
315-765-1462
clacagnina@blissbiohealth.com
INVESTORS:
Chad Kolean
Chief Financial Officer
investors@cellectar.com
FAQ
Why did Cellectar Biosciences (CLRB) receive a delinquency notification from Nasdaq?
Cellectar Biosciences (CLRB) received a delinquency notification from Nasdaq due to a delay in filing its Q2 2024 10-Q report, caused by the need to restate previously filed financial statements.
What financial periods are affected by Cellectar’s (CLRB) restatement of financial statements?
Cellectar’s (CLRB) restatement affects audited financial statements for fiscal years 2022 and 2023, and unaudited quarterly reports from Q1 2023 to Q1 2024.
When does Cellectar Biosciences (CLRB) expect to complete the restatement process?
Cellectar Biosciences (CLRB) expects to complete the restatement process in approximately six weeks from August 23, 2024.
What is the deadline for Cellectar (CLRB) to submit a compliance plan to Nasdaq?
Cellectar (CLRB) has until October 21, 2024, to submit a compliance plan to Nasdaq.
Is Cellectar’s (CLRB) listing on the Nasdaq Capital Market currently affected by the delinquency notice?
No, Cellectar’s (CLRB) listing on the Nasdaq Capital Market is not currently affected by the delinquency notice.
