Company: OPGN
Filing Date: 2025-08-21
Form Type: 10-K
Source: 0001829126-25-006628
Chunk: 1114

Company: OPGEN INC
Filing Date: 2025-08-21
Form: 10-K
Item: Item 6
Chunk 1114
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 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 and removed the previously recorded indemnification asset and gain on lease indemnification and changed the accounting estimates
related to the operating lease right-of-use asset and leasehold improvement property and equipment and recorded a gain on impairment adjustment.

Revenue Recognition

As described in Note 3 to the consolidated financial
statements, during the years ended December 31, 2024 and 2023, the Company derived revenues from (i) listing sponsorship and consultancy
services, (ii) the sale of Unyvero Application cartridges, Unyvero Systems, Acuitas AMR Gene Panel test products, and SARS CoV-2 tests,
(iii) providing laboratory services, and (iv) providing collaboration services including funded software arrangements, license arrangements,
and the FIND NGO collaboration on its Unyvero A30 platform.