Biotech Auditor Quits
Pacific Biometrics Inc. said Monday its auditor, Coopers & Lybrand LLP, resigned after the Irvine developer of diagnostic and laboratory services restated its loss for a recent quarter on the auditor’s advice.
In a news release in early May, the company initially said it posted a loss of $1.1 million, or 62 cents a share, for its third quarter, ended March 31. Later last month, the company reported a wider loss of $1.3 million, or 88 cents, for the period.
A company official attributed the change to the auditor’s recommendation that it step up depreciation being taken for technology under license from another Irvine company. The faster rate resulted in a noncash adjustment of $187,400 against quarterly results.
The company said it was not notified by the auditors that there were any material errors in the financial statements or material deficiencies in the design or operation of internal controls.
An official in the auditor’s Newport Beach office declined to comment.