Mira Pharmaceuticals, Inc. (NASDAQ:MIRA), a Florida-based pharmaceutical company with a market capitalization of $16.56 million, announced the change of its independent registered public accounting firm this week. The company's former accountant, Cherry Bekaert (EBR:BEKB) LLP, resigned on Monday.
During their tenure, Cherry Bekaert did not express any adverse opinions on Mira Pharmaceuticals' financial statements for the years ended December 31, 2023, and 2022. However, they did identify material weaknesses in the company's internal control over financial reporting for both years. According to InvestingPro analysis, these concerns are reflected in the company's weak overall Financial Health Score of 1.44 out of 5.
Cherry Bekaert's reports included explanatory paragraphs regarding concerns about the company's ability to continue as a going concern but contained no disagreements with the company on accounting practices or auditing procedures that would have required mention in their reports.
These going concern issues align with current financial metrics, as InvestingPro data shows the company reported a loss per share of $0.57 over the last twelve months. Despite these challenges, the company maintains a strong current ratio of 6.11, indicating sufficient liquid assets to meet short-term obligations.
Following Cherry Bekaert's resignation, Mira Pharmaceuticals engaged Salberg & Company P.A. as its new accounting firm on December 18, 2024. The board of directors approved this appointment following the recommendation of the Audit Committee.
Prior to the engagement of Salberg & Company P.A., Mira Pharmaceuticals had not consulted with the firm on any accounting principles or transactions, nor had there been any disagreements or reportable events as defined by regulatory standards.
In other recent news, Mira Pharmaceuticals has announced substantial preclinical success with its drug candidate, Ketamir-2, showing a 60% greater efficacy in reducing chemotherapy-induced pain compared to the FDA-approved treatment, gabapentin. The company is also preparing to submit an Investigational New Drug application for Ketamir-2 by the end of 2024. Additionally, Mira Pharmaceuticals is examining Ketamir-2's potential application for post-traumatic stress disorder.
In other corporate developments, the company has appointed Matthew Pratt Whalen as a new board member and Chairman of the Audit Committee, following the departure of Michael Jerman. Whalen brings over 20 years of experience in public accounting and corporate finance to Mira Pharmaceuticals.
Furthermore, Ascendiant Capital has initiated coverage on Mira Pharmaceuticals with a 'Buy' rating. Mira Pharmaceuticals' Chief Financial Officer, Michelle Yanez, has agreed to a reduced annual base salary, demonstrating her ongoing commitment to the company. The company has also successfully regained compliance with the Nasdaq's minimum bid price requirement.
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