NervGen (NASDAQ: NGEN) restates interim statements and nets C$77.9 million

What happened

NervGen Pharma Corp. (NASDAQ: NGEN) said its audit committee found valuation errors in stock options and certain warrant derivative liabilities.

The company restated its condensed consolidated interim financial statements for June 30, 2026 and December 31, 2025. It said the errors ran from fiscal year 2020 through June 30, 2026.

NervGen said the errors did not affect cash flows or cash runway.

The filing says the company paid a C$4.97 million cash commission to underwriters, leaving total net proceeds of C$77.9 million.

It also says NervGen sold 949,700 common shares under its at-the-market program at a weighted average price of C$2.92 a share for gross proceeds of C$2.77 million.

In addition, C$4.08 million of original fair value linked to those options moved from reserves to share capital.

The filing says the restatement affected liabilities, common shares, reserves, deficit and the reported earnings line.

Key numbers

Metric	Latest	Change	Source
Total net proceeds	C$77.90 million		SEC 6-K
Cash and cash equivalents	C$86.79 million	from C$15.67 million, +C$71.12 million	Calculated from SEC 6-K
Six-month net income and comprehensive income	C$8.88 million	from -C$13.00 million, +C$21.88 million	Calculated from SEC 6-K
Six-month operating expenses	C$19.12 million	from C$11.61 million, +C$7.51 million	Calculated from SEC 6-K
Common shares sold under the at-the-market program	949,700 common shares		SEC 6-K

Read more: NervGen Pharma (NGEN) stock analysis and investment case

Why it matters

OptimistFi's case is that NervGen is a binary clinical-stage option, so cash and dilution still matter.

Cash and cash equivalents were C$86.79 million at June 30, 2026, up from C$15.67 million a year earlier.

That is a gain of C$71.12 million.

Six-month operating expenses were C$19.12 million, and the restatement also changed liabilities, common shares, reserves and deficit.

Six-month net income and comprehensive income was C$8.88 million, versus a C$13 million loss a year earlier.

The filing says that swing came from a C$29.45 million unrealized gain on the warrant derivative and C$3.92 million of share issuance costs allocated to the derivative, so it does not reflect operating performance.

The main risk remains in the filing itself. NervGen says it is pre-revenue, expects no revenues in the foreseeable future, and may need more financing on acceptable terms.

Stock perps: every US stock that trades as a perpetual future, by leverage, live

What's next

The base shelf is expected to stay effective until December 25, 2026.

On July 2, 2026, NervGen filed a prospectus supplement for a 2026 at-the-market program that lets it sell common shares through Nasdaq at prevailing market prices.

The company says it will use net proceeds for general corporate purposes, including operations, working capital, debt repayment, research and development, intellectual property development, and preclinical and clinical expenses.

More sales would add cash. If the company does not use the program, the balance sheet would stay the same.

More from OptimistFi

• NGEN stock: the NervGen Pharma thesis, its status and the next test to watch
• Stock research on every company OptimistFi covers

From OptimistFi Perps