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NioCorp’s Auditor Quits After Restating Financials It Restated Last Year
Rare earth metals developer also revised its 2023 financials after botching the warrant accounting associated with an acquisition.
October 13, 2023
NioCorp Development (NB), an explorer and developer of rare earth minerals, revealed a new accounting error not disclosed alongside the restatement of years of financials the prior year. The error was identified on the quarter ended March 31, 2023 and involved the accounting treatment of warrants offered to an asset manager. The error
The error required the restatement of NioCorp’s financials for the periods ended September 30, 2022 and December 31, 2022.
In its previous annual report, NioCorp acknowledged a control deficiency related to its accounting for non-routine transactions. The error resulted in NioCorp restating its financials for fiscal years ended June 30, 2022 and 2021, as well as the interim periods ended September 30, 2021, December 31, 2021, and March 31, 2022.
Separately, NioCorp also revised its financials as of March 31, 2023 after determining it had
used an incorrect strike price while valuing the warrants included in its GXII acquisition. The error resulted in an overstatement of other operating expenses, at fair value, and an understatement of change in fair value of warrant liabilities in condensed consolidated statement of operations and comprehensive loss for both the three- and nine-month periods ended March 31, 2023.
The error reduced NioCorp’s reported net loss in the period by $0.66 million, or 2.25%.
NioCorp revised its financials in its latest annual report but will not correct the errors included in previous filings.
In addition, warrant liabilities, at fair value and accumulated deficit were overstated and understated, respectively, as of March 31, 2023.
Separately, after markets closed on Friday October 13, 2023, NioCorp revealed its auditor, BDO is quitting. The firm will not stand for re-election at NioCorp’s next annual meeting.
BDO made the decision to quit without consulting NioCorp’s audit committee.
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