Shares of Singapore Institute of Advanced Medicine surged nearly 40% in recent trading.

Singapore Institute of Advanced Medicine (SGX:9G2) revealed that PwC, its external auditor issued a disclaimer of opinion on the company's financial statements for the fiscal year ended June 30, a filing with the Singapore Exchange said on Wednesday.

The company had reported a loss of SG$37.4 million after tax for the period and the auditor has highlighted doubt on its ability to continue as a going concern.

Net cash used in operations amounts to SG$12.9 million while liabilities have exceeded current assets by around SG$7.9 million.

The medical services company relies on a subsidiary that represents 87% of its total assets, which booked a loss after tax of around SG$21.1 million.

The external auditor said the company would require to make significant adjustments to its asset valuations and liability classifications.