Summary by Moomoo AI
On April 11, 2024, Conduit Pharmaceuticals Inc. announced that its previously issued unaudited financial statements for the first three quarters of 2023 should not be relied upon and will require restatement. The decision, made after discussions with the company's advisors and its independent accounting firm Marcum LLP, pertains to the incorrect accounting treatment of certain legal expenses related to a business combination and concurrent private placement financing. These expenses, which should have been capitalized, were instead expensed, leading to an understatement of net income and prepaid expenses, and an overstatement of additional paid-in capital. The necessary adjustments will reduce legal expenses reported in the first, second, and third quarters of 2023 by $493,000, $402,000, and $639,000, respectively. Conduit Pharmaceuticals plans to include the restated financials and adjustments in its upcoming annual report on Form 10-K. The company's management and Audit Committee have discussed these issues with Marcum LLP, which will also provide a letter to the SEC regarding the restatement.