Here's the 10Q and 10K/A (4/29/16) from approximately that period. The article is dated 5-1-16. I'd like you to find the relevant section where that is actually shown in the financials from that period? The article is written as though this is an admission of culpability. I didn't see it in the relevant financial report. Maybe I was just looking too quickly.
However, I did find that their regular audit processes, from 2014 had PREVIOUSLY disclosed that issue, prior to Phase Five's report, not as an admission of culpability, but as a measure to IMPROVE their processes. Long before it was suggested, by the fakers, it was a part of the company's improvement and audit process, it appears. Phase Five's report came out in 2015. It "found" nothing that had not already been highlighted by the company and that was not being remedied. Neither did that reporter. His report suggests it is in relation to Phase Five's allegations, as though, again, there is some admission here of culpability.
I think your ability to find that and point it out is very interesting.
(5) I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
he or she and the other certifying officers have disclosed to the issuer's auditors and to the audit committee of the board of directors (or persons fulfilling the equivalent function):
any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer's internal controls;
In connection with the annual report of Northwest Biotherapeutics, Inc. (the “Company”) on Form 10-K/A for the year ended December 31, 2015, as filed with the Securities and Exchange Commission (the “Report”), I, Linda F. Powers, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: April 29, 2016
By: /s/ Linda F. Powers Name: Linda F. Powers Title: Chief Executive Officer and President (Principal Executive Officer and Principal Financial and Accounting Officer)
IN fact, the admissions by the company came from, not 2016, not after Phase Five, but BEFORE Phase Five, in 2014, during their regular audit processes:
Our management and our independent auditors have identified internal control deficiencies, which our management and our independent auditor believe constitute material weaknesses
In connection with the preparation of our financial statements for the year ended December 31, 2014, and prior years, our management and our independent auditor identified certain internal control deficiencies that, in the aggregate, represent material weaknesses, including the following. However, these weaknesses did not result in any material unadjusted differences when preparing the December 31, 2014, financial statements.
· Insufficient segregation of duties, oversight of work performed and lack of compensating controls in our finance and accounting function due to limited personnel.
· Lack of controls in place, including those surrounding related party transactions, to ensure that all material transactions and developments impacting the financial statements are reflected and properly recorded.
· Lack of documentation to support occurrences of review and approval procedures.
· Design deficiencies that do not meet stated control objectives that elevate the level of risk of a material misstatement to our financial statements.
· Policies and procedures with respect to the review, supervision and monitoring of our accounting operations throughout the organization were either not designed and in place or not operating effectively.
· We did not maintain an adequate risk oversight function to evaluate and report on risks to financial reporting throughout the organization, including completion of a comprehensive risk assessment to identify all potential risk areas and evaluate the adequacy of controls to mitigate identified risk.
· We did not maintain an effective anti-fraud program designed to detect and prevent fraud relating to (i) an effective whistle- blower program or other comparable mechanism and (ii) an ongoing program to manage identified fraud risks.
16
As part of our independent auditors’ communications with our audit committee with respect to audit procedures for the year ended December 31, 2014, our independent auditors informed the audit committee that these deficiencies constituted material weaknesses, as defined by Auditing Standard No. 5, “An Audit of Internal Control Over Financial Reporting that is Integrated with an Audit of Financial Statements and Related Independence Rule and Conforming Amendments,” established by the Public Company Accounting Oversight Board, or PCAOB. Accordingly, the report of Marcum LLP on the Company’s internal control over financial reporting as of December 31, 2014, as well as management’s report as of the same date, which were included in the Annual Report, contained an adverse opinion thereon. Since 2012, we have retained a third party firm to perform our financial reporting function on a contract services basis. This third party firm specializes in technical accounting and SEC reporting services, and performs this function for many other bio-pharma companies, both small and large. This third party firm is owned and managed by individuals with significant “Big 4” accounting firm experience. In addition, we hired a “Big 4” accounting firm in early 2015 to review the significant estimates surrounding our derivative financial instruments. Management intends to take additional steps in due course to make the necessary improvements to address these deficiencies, but the timing of such steps is uncertain and the availability of funding and resources for such steps are also uncertain. Our ability to retain or attract qualified individuals to serve on our Board and to take on key management or other roles within our Company is also uncertain. Our failure to successfully complete the remediation of the existing weaknesses could lead to heightened risk for financial reporting mistakes and irregularities, and/or lead to a loss of public confidence in our internal controls that could have a negative effect on the market price of our common stock.
Danny Fortson and Peter Evans Published: 1 May 2016 Comment (0) Print Shares in Northwest Biotherapeutics have plunged nearly 90% since last summerShares in Northwest Biotherapeutics have plunged nearly 90% since last summer ( Andrew Brookes/Getty Images) A biotech company backed by star investor Neil Woodford has admitted it is incapable of policing internal fraud or related-party transactions.
Its annual report also said plans to improve its financial controls were “uncertain”.
Shares in Northwest Biotherapeutics, which is developing a brain cancer treatment, have plunged nearly 90% since last summer.
In October, the US-listed company was labelled a “house of cards” by the investment firm Phase Five Research. It alleged that the chief executive, Linda Powers, had funnelled millions of dollars from the company into other businesses she controls.
Northwest denied wrongdoing and set up a special committee, led by a former justice department lawyer, to investigate the allegations. It has yet to reveal its findings.
In its latest annual report, Northwest revealed seven “material weaknesses” in its financial controls. It “did not maintain an effective anti-fraud programme designed to detect and prevent fraud relating to an effective
That last sentence appears not to be true. It appears the journalist relied upon someone perhaps he should not have relied upon?
AI
