CEO walks into the CFO's office and asks: "How do the numbers look"?  The CFO answers: "How do you want them to look"?  

The implication is that with accounting, and various accounting methods....something like revenue recognition can be brought forward or deffered, same with write downs and write offs....with a revenue generating biz a company that wants to show a poor quarterly performance, they can defer revenues until the next quarter, and take a major write off in order to make the books look weak and lower EPS.

This joke was not my Father's invention of course....its been around for decades, probably 100 years or more.  Why would a public company want to appear weak?  Its that old saw about how you can't buy a stock low unless there are others willing to sell low.

With a non-revenue generating development stage biotech of course those options aren't available.  But it looks to me like Resverlogix is provding decent examples of how the same shenanigans can be played out in other ways.