Shares in AIM-listed artificial intelligence firm DeepVerge plummeted after it revealed its revenue for 2022 could be half as much as previously stated.
The company - which provides AI technology for the life sciences sector - said its actual revenue for 2022 would be 40-50% lower than the £17.2 million it had reported in January.
It said the “vast majority” of lost revenue will still be recorded in 2023, having been “incorrectly recognised” in last year’s accounts. However, some will not.
The Dublin-based firm added that it still expects to be able to stay in business, but this would require its capital to be “tightly managed”. It is looking at new funding options to shore up its balance sheet.
DeepVerge’s auditor Jeffreys Henry resigned less than a month ago. The AI firm said the accountants confirmed “there were no circumstances which they considered should be brought to the notice” of shareholders when they resigned.
The error was discovered following a review when new CFO Andrew Waters took over.
“Whilst it is extremely disappointing that 2022 revenues are likely to be so far below the figures provided by the previous executive management team, I’m confident that the new management has robust plans in place to deliver the order book during 2023 and 2024,” chairman Ross Andrews said.
Deepverge shares plummeted on the news, falling 45% to 0.8p. Shares are now down 98% since peaking in August 2020 when the company agreed to buy a firm that tested wastewater for Covid-19.
