Amyris Inc (fka AMRSQ)

[samsamsamiam]

https://www.sec.gov/litigation/admin/2021/34-93341.pdf

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934 Re le ase No. 93341 / October 15, 2021
ACCOUNTING AND AUDITING ENFORCEMENT Re le ase No. 4264 / October 15, 2021
ADMINISTRATIVE PROCEEDING File No. 3-20624
In the Matter of AMYRIS, INC.,
Respondent.
ORDER INSTITUTING CEASE-AND- DESIST PROCEEDINGS PURSUANT TO SECTION 21C OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS, AND IMPOSING A CEASE- AND-DESIST ORDER
I.
The Securities and Exchange Commission (“Commission”) deems it appropriate that cease- and-desist proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 (“Exchange Act”), against Amyris, Inc. (“Amyris” or “Respondent”).
II.
In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the “Offer”) which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission’s jurisdiction over it and the subject matter of these proceedings, which are admitted, Respondent consents to the entry of this Order Instituting Cease- And-Desist Proceedings Pursuant To Section 21C Of The Securities Exchange Act Of 1934, Making Findings, And Imposing A Cease-And-Desist Order (“Order”), as set forth below.

III.
On the basis of this Order and Respondent’s Offer, the Commission finds1 that:
Summary
1. During the first two quarters of 2018, Amyris improperly recognized certain royalty revenues that rendered its financial statements materially inaccurate. These revenue recognition errors resulted from internal accounting control failures that led to important information not being communicated to the company’s internal accounting staff concerning certain significant royalty payments, which also resulted in Amyris’s failure to make and keep accurate books and records.
2. Amyris failed to devise internal accounting controls to provide reasonable assurance that relevant information was communicated to its accounting staff so that transactions, including the estimation of royalty revenue could be recorded in accordance with U.S. generally accepted accounting principles (“GAAP”). Amyris also lacked sufficient resources within its finance and accounting function to provide reasonable assurance that the company properly applied GAAP to its royalty revenue transactions.
3. As a consequence of Amyris’s control insufficiencies, it overstated its royalty revenues in the first two quarters of 2018, rendering the company’s financial statements materially inaccurate and leading to the Company’s restatement of its quarterly revenue results for the first three quarters of 2018. As a result of this conduct, Amyris violated Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 13a-11 and 13a-13 thereunde



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