Exagen (XGN) has disclosed a new risk, in the Accounting & Financial Operations category.
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Exagen faces a significant business risk if it fails to maintain effective internal control over financial reporting. The company’s recent admission of material errors due to inadequate controls has already necessitated a restatement of financials, undermining investor confidence and potentially affecting stock prices. As Exagen grows and transitions out of its “emerging growth company” status, the demands for compliance with Section 404 of Sarbanes-Oxley will intensify. If future evaluations by management or external auditors uncover additional material weaknesses, Exagen could suffer regulatory consequences, market penalties, and restricted access to capital markets.
The average XGN stock price target is $6.00, implying 238.98% upside potential.
To learn more about Exagen’s risk factors, click here.
