Company: OPGN
Filing Date: 2025-08-21
Form Type: 10-K
Source: 0001829126-25-006628
Chunk: 989

Company: OPGEN INC
Filing Date: 2025-08-21
Form: 10-K
Item: Item 5
Chunk 989
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 test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides
a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below
are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated
to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and
(2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter
in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit
matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

F-2

Restatement of Prior Period Financial Statements

On April 1, 2024, the Company entered into a lease
assignment agreement where the Company assigned, transferred, set over and conveyed to an assignee all its estate, right, title and interest
in and to the lease at its Rockville, Maryland headquarters. OpGen’s security deposit is set to remain with the landlord and be
repaid over time as agreed upon with the assignee. Since the assignment agreement states that OpGen, the assignor, has a continuing liability
for the performance of all covenants and conditions of the lease, the Company is required to include the related ROU lease liabilities
within its financial statements, and these liabilities will continue to decrease over the life of the lease. However, since the lease
assignment agreement also states that the assignee indemnifies OpGen, the assignor, from and against any claims, liabilities, etc. arising
out of or resulting from obligations of the assignee under the lease arising on or after April 1, 2024, the Company recorded an indemnification
asset on its balance sheet for the quarter ended March 31, 2024 of equal value to the lease liability, such that, on a net basis, there
would be no impact to stockholders’ equity or the balance sheet.

We discussed that the Company should consider
removing the indemnification asset from its books and restate its Form 10-Q for the quarter ended March 31, 2024. The Company agreed with
our findings