MiMedx Audit Results In Restatement Of 5 Years Of Financials

MiMedx Group Inc MDXG plunged nearly 21 percent Thursday after announcing:

• The departure of its CFO;
• The board-directed requirement to restate financial results related to sales recognition for the 2012 through 2016 fiscal years and interim periods of 2017; and
• The related withdrawal of all guidance for 2018.

The financial disclosure more than offset concurrent news of international progress demonstrating “meaningful operational progress which will result in expanded revenue contribution” over the next few years.

“The company's underlying business remains strong,” a press release said. 

Why It’s Important

MiMedx intimated investors may have been acting on inaccurate revenue figures through the last two quarters.

Additionally, it suggested the metric may be further adjusted throughout an ongoing audit committee investigation that's evaluating sales, distribution practices and customers, which could expand the scope of restated financial items.

What’s Next

The company said it will not release additional updates until the investigation is closed, and it did not provide a timeframe for the filing of restated statements.

“It is diligently pursuing completion of the restatement and intends to make such filings as soon as reasonably practicable,” MiMedx's release said. 

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