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Avai Bio, Inc. (AVAI): material weakness open 2,038 days

By Russell Tomoum, Ctrl Worx™. Built from its own SEC filings. How the Clock works.

Avai Bio, Inc. reported ineffective internal control over financial reporting because of a material weakness in 11 filings since Jul 13, 2021. The latest was its 10-K for the period ended Mar 31, 2026.

Checked against SEC EDGAR: Oct 29, 2026 · Entry #11399

Causes the company named

Entity-level and governance · 11Segregation of duties · 11ITGC: general · 11Other · 1

No audit committee or independent directors, weak cash controls without segregation or dual signatures (Other: cash), and no formal data backup procedures.

What the latest filing says

Based on this evaluation, our Principal Executive Officer and Principal Financial Officer concluded that in light of the material weaknesses described below, our disclosure controls and procedures were not effective as of March 31, 2026. See material weaknesses discussed below in Management’s Annual Report on Internal Control over Financial Reporting. Management’s Report on Internal Control over Financial Reporting Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)). The Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject [...]

From the controls section of the 10-K filed Jul 14, 2026. Read the full filing on SEC EDGAR.

Company response: Avai Bio, Inc. can send a statement or a link to its remediation update to russell@ctrlworx.com. We post it here, unedited and dated.

Filings

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Based on public SEC filings. Causes are grouped into standard categories by Ctrl Worx. The filings are the authority. Ctrl Worx is not affiliated with Avai Bio, Inc. or the SEC. Not investment advice. Why you can rely on the Watch List.