Business

BiomX receives going concern note from auditors By Investing.com

Published

2 months ago

April 4, 2024

CAMBRIDGE, Mass. and NESS ZIONA, Israel – BiomX (NYSE:) Inc. (NYSE American: PHGE), a biotechnology company focusing on phage therapy development, announced today that its independent registered public accounting firm included a “going concern” qualification in its audit opinion. This disclosure follows the guidelines of the NYSE American Company Guide, necessitating a public announcement due to the nature of the audit opinion.

The qualification was mentioned in the company’s annual report on Form 10-K for the fiscal year that concluded on December 31, 2023, and filed with the Securities and Exchange Commission (SEC) today. It is important to note that this announcement does not reflect any amendments to BiomX’s 2023 audited financial statements or its annual report.

BiomX is currently in the clinical stage of developing phage therapies aimed at eradicating specific pathogenic bacteria linked to chronic diseases. The company utilizes both naturally occurring and engineered phages in its treatments.

BiomX’s latest financial disclosures and the auditor’s concerns can be found in the SEC filings, which highlight potential risks and uncertainties facing the company. The details of these filings are available on the SEC’s website.

This news is based on a press release statement from BiomX Inc. and does not include any promotional content or endorsement of the company’s claims. The announcement serves to inform shareholders and the public of the audit opinion and to comply with regulatory requirements.

InvestingPro Insights

BiomX Inc. (NYSE American: PHGE), amidst the “going concern” qualification by its auditors, shows a market capitalization of $16.12 million, reflecting the size and scale of the company within the biotechnology sector. The company’s financial health is under scrutiny, as indicated by the recent audit report, and InvestingPro data provides additional context to the auditor’s concerns. With an adjusted price-to-earnings (P/E) ratio over the last twelve months as of Q4 2023 standing at -0.63, BiomX’s stock performance and valuation metrics signal challenges in generating profitable growth.

InvestingPro Tips suggest that BiomX is quickly burning through cash and has suffered from weak gross profit margins. These factors, combined with the expectation that net income is likely to drop this year, paint a cautious picture for investors. In addition, analysts do not anticipate the company will be profitable within this fiscal year, which aligns with the concerns raised in the auditor’s report. On the brighter side, the company has experienced a strong return over the last month with a 60.55% price total return, but this is set against a backdrop of high price volatility that the stock generally trades with.

For investors seeking a deeper understanding of BiomX’s financial position and future prospects, InvestingPro offers a wealth of additional insights. With a total of 12 InvestingPro Tips available, investors can gain a more comprehensive view of the company’s financial health and market performance. To access these insights, visit InvestingPro and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Business

China’s EV makers are having more trouble paying their bills and now take 2 to 3 times longer than Tesla does

Published

4 hours ago

May 19, 2024

Pearl Liu, Linda Lew, Bloomberg

The time it’s taking for some of China’s electric-car makers to pay suppliers is ballooning — a further sign of stress in the nation’s increasingly cutthroat auto market.

Nio Inc. was taking around 295 days to clear its receipts payable, the vast majority of which are owed to suppliers, at the end of 2023 versus 197 days in 2021, according to the most recent available data compiled by Bloomberg. Xpeng Inc., another US-listed Chinese EV maker, was taking 221 days to honor its obligations to vendors and related parties, up from 179 days, the data show.

Elon Musk’s Tesla Inc., by comparison, only took around 101 days, and that period has remained largely stable in the past three years.

The extended payment cycles are indicative of the pressure many automakers are under in China, where economic growth remains sluggish and consumer sentiment is subdued. That’s translated into reduced demand for electric cars, and the once fast-growing market is now beset with intense price wars and crunched profit margins.

Since Beijing phased out a national subsidy program for EV purchases in 2022, some smaller manufacturers have been pushed to the brink. WM Motors filed for restructuring in October, and Human Horizons Group Inc., the owner of premium EV brand HiPhi, suspended operations for at least six months in February.

“Everybody’s suffering,” said Jochen Siebert, managing director at consultancy JSC Automotive. “For manufacturers, price reductions mean less money coming in. So the money they owe to their suppliers may be necessary for them to remain liquid.”

Representatives for Nio and Xpeng didn’t respond to requests for comment.

Delayed payments are starting to have a knock-on effects at auto-parts suppliers, Siebert said.

“Tier-three or four suppliers really get bitten, because they can’t pass it on,” he said, adding the EV sector may see a “messy consolidation” as suppliers go bankrupt, quickly causing production issues for automakers down the line.

Indeed Jiaxing, Zhejiang-based Minth Group Ltd., a supplier of exterior body parts, saw its accounts and notes receivables surge more than 40% to 4.74 billion yuan ($656 million) as of December from the end of 2020, while its cash and equivalents shrank by almost one-third to 4.2 billion yuan over the same period, according to data compiled by Bloomberg.

Hunan Yuneng New Energy Battery Material Co., which is a major supplier to BYD Co., according to data compiled by Bloomberg, saw its accounts and notes receivables more than triple to 10.43 billion yuan at the end of 2022 from a year earlier, while cash reserves fell to 435.2 million yuan.

“The price war won’t end soon and the stress eventually will be delivered to suppliers,” said Zhu Lin, a Shanghai-based managing director with turnaround management firm Alvarez & Marsal.

“We’ve seen more car components producers approaching us to improve their performance and some of them are thinking about offloading unprofitable businesses,” Zhu said. “The weak ones in the supply chain will face a high risk of being kicked out of the game.”

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Business

Russian strikes on Ukraine’s Kharkiv region kill at least 11

Published

8 hours ago

May 19, 2024

ArticleHeader-author

A view shows a crater that appeared after a Russian missile strike on a structure at a resort, amid Russia’s attack on Ukraine, in Kharkiv, Ukraine May 19, 2024. REUTERS/Valentyn Ogirenko

Valentyn Ogirenko | Reuters

Russia struck a busy lakeside resort on the edge of Ukraine’s second largest city on Sunday and also attacked villages in the surrounding region, killing at least 11 people and wounding scores.

The missile strikes were the latest in what have been constant Russian attacks in recent weeks on the Kharkiv region of northeastern Ukraine, where Russian troops have launched an offensive.

Valentyna, 69, had blood running down her face at the lakeside resort area where her home had been destroyed and a busy restaurant nearby been obliterated. Her husband was killed down by the water, she said, gesturing to the area near the shore where there was now a crater, rubble and corpses.

“To lose my husband, to lose my house, to lose everything in the world, it hurts, it hurts me,” she shouted through tears “They (the Russians) are animals, why do they need to kill people?”

Prosecutors said six people were killed there, one was still missing and 27 wounded. Rescuers said the initial strike was followed by a second strike around 20 minutes later, targeting emergency crews at the scene in a so-called “double tap”.

“There were never any soldiers here,” said Yaroslav Trofimko, a police inspector who arrived after the first strike and was then caught up in the second. “It was a Sunday, people were supposed to be here to rest, children were supposed to he here, pregnant women, resting, enjoying a normal way of life.”

Another five people were killed and 9 injured later in the day in two villages in Kupiansk district. Local governor Oleh Syniehubov said Russian forces shelled two villages of the district with a self-propelled multiple rocket launcher.

President Volodymyr Zelenskyy again called on Western allies to supply Kyiv with additional air defence systems to protect Kharkiv and other cities.

“The world can stop Russian terror – and to do so, the lack of political will among leaders must be overcome,” Zelenskyy said on Telegram.

“Two Patriots for Kharkiv will make a fundamental difference,” he said, referring to Patriot missile defence systems. Air defence systems for other cities and sufficient support for soldiers on the front line would ensure Russia’s defeat, the president added

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