Cancer Genetics down 32% on material weakness disclosure and increased A/R

|About: Cancer Genetics, Inc. (CGIX)|By:, SA News Editor

Thinly traded nano cap Cancer Genetics (CGIX -31.8%) is down on more than a 7x surge in volume in response to its announcement of Q4 and 2017 results.

For the year, sales were up 7.7% to $26.1M, net loss worsened 32.1% to ($20.9M) and cash consumption improved 24.0% to ($13.6M).

The company disclosed that accounts receivable expanded to ~$16M before adjustments due to disruptions in collections in its Clinical Services unit. It recorded a bad debt expense of $4.4M and wrote off $1.8M in A/R in Q4.

It also disclosed a material weakness in its controls over financial reporting as well as a going concern paragraph from its auditor.

Management has engaged Raymond James to assist in the evaluation of strategic alternatives, including an outright sale of the company.

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