Aditxt, Inc., a biotech company, has responded to the U.S. Securities and Exchange Commission (SEC) regarding its investment in Evofem Biosciences, Inc. and the associated accounting treatment. In a letter dated June 6, 2024, Aditxt addressed the SEC's inquiry about the $22.7 million investment in Evofem, clarifying that it is accounted for under the cost method as per ASC 321, due to the lack of a readily determinable fair value for Evofem's Series F-1 Preferred Stock. Aditxt also confirmed that it does not exercise significant influence over Evofem, negating the need for financial statements under Rule 3-09 of Regulation S-X. Additionally, Aditxt does not consider the acquisition of Evofem probable at this stage, given the significant conditions yet to be satisfied...Show More

Aditxt, Inc., a biotech company, has responded to the U.S. Securities and Exchange Commission (SEC) regarding its investment in Evofem Biosciences, Inc. and the associated accounting treatment. In a letter dated June 6, 2024, Aditxt addressed the SEC's inquiry about the $22.7 million investment in Evofem, clarifying that it is accounted for under the cost method as per ASC 321, due to the lack of a readily determinable fair value for Evofem's Series F-1 Preferred Stock. Aditxt also confirmed that it does not exercise significant influence over Evofem, negating the need for financial statements under Rule 3-09 of Regulation S-X. Additionally, Aditxt does not consider the acquisition of Evofem probable at this stage, given the significant conditions yet to be satisfied, which include conversions of preferred stock, agreements with warrant holders and convertible noteholders, and a series of financial transactions. The company also detailed amendments to the merger agreement with Evofem, including the extension of filing dates and adjustments to investment requirements. Aditxt's letter follows a series of amendments and agreements related to the merger, including the termination and subsequent reinstatement of the merger agreement, and outlines the conditions that must be met for the merger to proceed.