A previously published version of this story incorrectly stated that 4D’s loss widened in the first paragraph, and numbers were transposed in the fourth and fifth paragraphs. The story has been corrected.
4D pharma PLC on Friday restated its earnings for the first half of 2021, narrowing its previously reported loss, due to a change in the way warrants and units assumed by the company through its merger with Longevity Acquisition Corp. were reported.
The London- and U.S.-listed pharmaceutical company
said the warrants and units should be recorded as derivative liabilities and not equity instruments under both IFRS and U.S. GAAP accounting standards.
It added that the change doesn’t affect its cash position or operating results of the business.
Under the change, pretax loss for the half year ended June 30 was 50.1 million pounds ($68.2 million) compared with a previously reported loss of GBP57.0 million and a loss of GBP15.7 million for the comparable half.
Net loss is restated to GBP49.2 million from a loss of GBP56.1 million previously and GBP13.6 million for the first half of 2020.
On March 22, 4D pharma completed its acquisition of Longevity, which was first announced in October 2020.
Shares at 0815 GMT were down 1.45 pence, or 4.2%, at 33.0 pence.
Write to Ian Walker at email@example.com