Study #1

Biomedical Company going public

Atossa Genetics (ATOS)


History

The company  is a healthcare company focused on the development and marketing of novel cellular and molecular diagnostic risk assessment products for breast cancer.  They have received FDA clearance to market it’s system of early stage breast cancer detection and has already begun deployment using it’s patent protected technology.

Challenge

Atossa Genetics has a lot of interest in their product & service, and anticipates growing very rapidly.  In order to properly launch the company, a large infusion of capital was needed to finish development and manufacturing of the system, build a sales and marketing team, and rapidly expand its growth.

With a pending boom in growth, the company decided to go public as there was a substantial interest not only in the product itself, but in the company and it’s success from investors.  The process of an IPO is a long and costly endeavor, and the company recognized the need to bring in experts early on to help facilitate both the IPO process, as well as the growth of the company thereafter.

The immediate needs were:

* Revise the forecast for the changing business model

* Implement and manage the accounting procedures & day to day activity

* Comply with the SEC regarding the S1 filing financial section and MD&A

* Facilitate and work with auditors to have quarterly and annual financial reports reviewed and audited for inclusion in filings

* Determine the accounting treatment of various events such as issuance of stock

 

Solution

* Revise the outdated financial model to reflect the current business model for the company

* Facilitate the quarterly reviews and annual audits

* Prepare all financial statements, footnotes and MD&A disclosures required for a S1 SEC Filing – intent to go public, along with revisions to the S1 based on SEC feedback

* Handle accounting for the company along with research & proper entry of options, patent royalties, employment accruals, and other non-standard transactions

* Acting Human Resource manager for the first employees of the company, handling payroll, taxes, reporting

* Implement other best business practices for accounting and financial reporting so the company is prepared once public and generating revenue

 

Results

* The company is on track for a Q2 2011 IPO

* Relationships with auditors and outside investors have established the company as a credible startup

* A management team, board of directors and advisers has been put in place to ensure success

* Company quickly gained traction for its product & service and continues to rapidly grow