Investors looking for
on Monday may have had trouble finding it. That's because the Brisbane, Calif.-based biotech company has been delisted for failing to promptly file quarterly financial statements with the
Securities and Exchange Commission
The company vows that it will submit the necessary documents in a few months and seek reinstatement to the Nasdaq.
VaxGen announced the Nasdaq verdict late Friday, repeating earlier comments that it is implementing "a more appropriate revenue recognition policy." The company said those efforts caused the delay in filing its quarterly financial reports for the three months ended March 30 and for the three months ended June 30.
The company added that it will restate 2002 and 2003 fiscal year reports, saying this "will have no effect on VaxGen's cash position and will result in a material increase in reported revenues and a decrease in net loss applicable to stockholders for the combined periods."
VaxGen had $18 million in cash and investment securities as of June 30, and the company said it believes it has sufficient cash resources to operate into the first quarter of 2005.
Now listed on the so-called pink sheets, a stock quotation service for thinly traded public companies, VaxGen said the Nasdaq will allow the company to apply for relisting after it files the SEC documents. VaxGen said it intends to file those statements before the end of October.
VaxGen said it has received a letter from the market that says, in part, that the revenue recognition matter "does not appear to have resulted from any impropriety or questionable internal controls."
VaxGen announced in May that it was reviewing its policy regarding government contracts for medical research. The contracts are with the National Institute of Allergy and Infectious Diseases. VaxGen has noted that this issue had been revealed to investors as early as February 2003, but it wasn't until May 2004 that the company delayed filing its first-quarter financial report.
The company is implementing new accounting policies to provide "the most appropriate revenue recognition method in conformity with generally accepted accounting principles."
The company's stock, which hit a 52-week high of $18.11, closed at $6.97 on Friday as a Nasdaq stock. In late morning trading Monday as a pink-sheet stock, VaxGen's shares were up to $7.85.