Radiopharmaceutical developer Navidea Biopharmaceuticals said that issues related to its Macrophage Therapeutics subsidiary and the resolution of a threatened proxy fight will result in a delayed filing of its Form 10-K with the U.S. Securities and Exchange Commission (SEC) for 2015.
Navidea said that the delay until March 30 is necessary due to the time it took to obtain financial information from Macrophage and assess its potential impact on consolidated financial statements, as well as the need for discussions with its auditors regarding a material weakness in internal controls at Macrophage and compliance with Navidea control policies by Macrophage's CEO and chief operating officer (COO). In addition, the delay was needed due to resolution of negotiations with investment firm Platinum Management and affiliates, including resolution of a threatened proxy contest with respect to control of Navidea's board of directors and confirmation of its existing line of credit with Platinum.
In connection with the material weakness in the internal controls at Macrophage, Macrophage's CEO and COO have resigned. Navidea said that it does not expect the outcome of the investigation to materially affect its financial results and it is working to complete and file its annual report on Form 10-K with the SEC as soon as possible. The firm also said the delayed filing with the SEC is not expected to have a material impact on its customers or the operations of its business.
For 2015 (end-December 31), Navidea had revenues of $13.2 million, more than double the $6.3 million turned in during 2014. Sales of its Lymphoseek radiopharmaceutical reached $10.3 million, up from $4.2 million in 2014. The company had operating expenses of $30 million in 2015, down from $32.3 million in 2014.
