NeuroOne Medical Technologies Corporation (Nasdaq: NMTC) announced today that it will restate its financial results for the quarter ended March 31, 2026, due to a revenue recognition error discovered during a post-release review. The company emphasized that the restatement is a one-time correction and does not affect its ongoing business, cash position, or fiscal year 2026 revenue guidance of at least $10.5 million.
The error, identified on May 18, 2026, stemmed from a customer order modification on product shipment at the end of the quarter. This resulted in an overstatement of revenue by approximately $0.5 million against the initially reported $2.4 million for the quarter. Consequently, gross profit was overstated by about $0.3 million, and operating loss and net loss were understated by the same amount. No prior periods were impacted.
Dave Rosa, CEO of NeuroOne, stated, "This one-time correction does not change our revenue projections for the year. Our operations remain strong, our growth strategy is unchanged, and we continue to anticipate product revenue for fiscal 2026 of at least $10.5 million."
The Audit Committee of the Board of Directors, after discussion with management, determined on May 21, 2026, that the company would restate its unaudited condensed financial statements included in the Quarterly Report on Form 10-Q filed on May 12, 2026. As a result, that report and any documents referencing those results should no longer be relied upon. NeuroOne intends to file an amendment to the Form 10-Q within the next few weeks.
The company has initiated and will continue to implement measures designed to improve its internal controls over financial reporting to prevent similar issues in the future. The restatement highlights the importance of robust internal controls, especially for companies navigating complex revenue recognition scenarios.
NeuroOne Medical Technologies Corporation is a medical technology company focused on improving surgical care for patients with neurological disorders. The company markets a minimally invasive electrode technology platform with four FDA-cleared product families: Evo® Cortical Electrodes, Evo® sEEG Electrodes, OneRF® Ablation System (for brain), and OneRF® Trigeminal Nerve Ablation System. These solutions aim to reduce hospitalizations and surgical procedures while lowering costs and improving patient outcomes. NeuroOne is also engaged in research and development for drug delivery, basivertebral nerve ablation, and spinal cord stimulation programs.
For more information, visit nmtc1.com.
Forward-looking statements in this release are based on NeuroOne's current views and are subject to risks and uncertainties. The company undertakes no obligation to update these statements.
