An Audit Committee of the Board of Directors of Interpace Biosciences, Inc. (IDXG) recently concluded its independent investigation. It was conducted to probe into the complaints of certain billing and employment as well as compliance matters. The investigation found all those allegations in the complaints unsubstantiated and concluded that no evidence of any illegal acts was found.
IDXG announced the committee’s conclusion on October 14, 2020 which drove its stock price to surge 32.33% on the day. As described in the company’s Notification of Late Filing on Form 12b-25 that the company remained unable to timely submit its Form 10-Q for the quarter ended June 30, 2020 in July 2020.
After that notification filing, Interpace received letters from employees raising voices over company’s certain employment and billing and compliance matters. Those letters also include letter from an employee who left the company over mentioned concerns. The company took the matter with and informed its Audit Committee and Regulatory Compliance Committee and also approached its independent registered public accounting firm.
Company’s Audit Committee then started investigation into matters highlighted by employees in their letters. Independent counsel and advisors also assisted the Audit Committee in that investigation. Upon completion of the investigation, Audit Committee concluded that the allegation made by the employees in their letters were not substantiated and there was found no evidence of any illegal acts while performing those activities.
Interpace last week also announced quarterly results for fiscal quarter ended June 30, 2020 and also shared business and financial updates. Net revenue for the second quarter getting hardest hit by the impact of COVID-19 declined by 13% to post $5.4 million. However company’s year-to-date net revenue came increasing at the rate of 19% against that of the same period last year. The company posted year-to-date net revenue of $14.6 million. IDXG acquired its pharma services segment in third quarter of last year and inclusion of results from that segment helped the company post positive 2020 results.