Update on the audit of the 2022 accounts
Date: 29 January 2024
Flexion (Nasdaq: FLEXM) today announces that a comprehensive independent legal and accounting review relating to the FY 2022 accounts has now concluded. The Review was commissioned by the Board to support its auditors, Grant Thornton, in their work to audit the company’s accounts for FY 2022.
As announced on 22 November 2023, during the course of the audit of the FY 2022 accounts, a number of inter-related questions and uncertainties had arisen, relating to Audiencly, the Company's recently-acquired subsidiary (acquired on 5 April 2022) and its relationship with its main customer, which became insolvent during the course of 2023 (and which was, prior to its acquisition by the Company, a related party of Audiencly).
In order to answer these questions definitively, the Board commissioned a thorough and comprehensive independent legal and accounting review into, inter alia, the commercial and contractual relationships between the two entities, the accounting records of Audiencly and the information provided by it during the course of the audit.
The Review has now been completed to the Company's and Board’s satisfaction. An Executive summary of the Review has been sent to the Company's auditors whilst they await the full report which will be available over the following days. The Company continues to support the auditors and make every effort to conclude its reporting cycle as soon as possible.
The Company is in dialogue with the Registrar of Companies in England and Wales and other relevant parties to keep them updated of the ongoing work. Given the circumstances, the Registrar of Companies has extended its deadline to 29 February 2024 before it will send any notification of breach to the Company.
The Company continues to trade and to carry on its business as normal and therefore there is no risk that the Company will be struck off the Register of Companies in England and Wales for filing the Accounts late.
The Company may be subject to an automatic fine of up to £7,500 if accounts are filed more than 6 months late (1/7/2024).