NervGen to Restate Previously Filed Financial Statements Recognizing Non-Cash Accounting Adjustments
- Adjustments have no impact on cash and cash equivalents, cash runway, or business operations.
- Restatement is expected to reduce previously reported stock-based compensation expense, warrant liabilities, and accumulated deficit.
VANCOUVER, British Columbia, Sept. 25, 2026 (GLOBE NEWSWIRE) -- NervGen (NASDAQ: NGEN), a late-stage clinical biopharmaceutical company developing first-in-class neuroreparative therapeutics for spinal cord injury (SCI) and other neurotraumatic and neurologic conditions, today announced it will restate its audited annual financial statements for the year ended December 31, 2025, and its unaudited interim financial statements for the quarter ended June 30, 2026.
The restatement revises the valuation of certain warrants and options, reducing previously reported stock-based compensation expense and warrant liabilities, with corresponding adjustments to unrealized gains and losses on warrant derivatives. The adjustments are non-cash and are expected to reduce previously reported non-cash operating expense and accumulated deficit.
The adjustments have no impact on the Company’s cash and cash equivalents, cash runway, or business operations.
The Company expects to file restated audited financial statements and related management’s discussion and analysis for the year ended December 31, 2025, including restated 2024 comparative figures and an adjustment to January 1, 2024 opening balances. The Company also expects to file restated unaudited interim financial statements and related management’s discussion and analysis for the quarter ended June 30, 2026.
The Company expects to complete these filings as soon as feasible and remains on track to report its third quarter 2026 financial results.
About NervGen
NervGen (NASDAQ: NGEN) is a late-stage clinical biopharmaceutical company developing first-in-class neuroreparative therapeutics for spinal cord injury (SCI) and other neurotraumatic and neurologic conditions. The Company’s mission is to transform the lives of individuals living with SCI by enabling the nervous system to repair itself. NervGen’s lead therapeutic candidate, NVG-291, is a subcutaneously administered, neuroreparative peptide designed to target the inhibitory CSPG-PTPσ pathway. NVG-291 is the first pharmacologic candidate to improve function, independence, and quality of life in chronic SCI, as observed in the Phase 1b/2a CONNECT SCI study. NVG-291 has received Fast Track designation from the FDA and Orphan Drug designation from the European Medicines Agency for the treatment of SCI. Through NVG-291 and the Company’s next-generation candidate, NVG-300, NervGen is pursuing a pharmacologic approach to transform the treatment paradigm for neurotraumatic and neurologic conditions with significant unmet medical need. For more information, visit www.nervgen.com and follow NervGen on X and LinkedIn.
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws (collectively, “forward-looking statements”). Statements regarding the Company’s current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements, and other future events or developments constitute forward-looking statements. The words “may”, “will”, “would”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “likely” or “potential”, or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. Forward-looking statements include, without limitation, statements relating to: the Company’s plans to restate previously issued financial statements and the scope and anticipated effects of the restatement; the expected non-cash nature of the adjustments and their effects on previously reported liabilities and other financial statement amounts; the expectation that the adjustments will have no impact on the Company’s cash, cash equivalents and marketable investments, cash runway or business operations; the anticipated timing of completing and filing the restated financial statements and related amended disclosures; the timing of reporting the Company’s third-quarter 2026 financial results; and other factors described in the “Risk Factors” section of the Company’s most recently filed Annual Information Form and Annual Report on Form 40-F, its management’s discussion and analysis for the year ended December 31, 2025, and subsequent filings with Canadian securities regulators and the U.S. Securities and Exchange Commission. These documents are available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the SEC’s website at www.sec.gov. Readers should not place undue reliance on forward-looking statements made in this news release. Unless otherwise stated, the forward-looking statements contained in this news release are made as of the date of this news release, and the Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Contacts
On365 Partners, Investor Relations
ir@nervgen.com
203.293.8091
David Schull or Ignacio Guerrero-Ros, Ph.D., Media
Russo Partners
David.Schull@russopartnersllc.com
Ignacio.Guerrero-Ros@russopartnersllc.com
858.717.2310
