8-K: ARQ, Inc. Appoints Baker Tilly as New Auditor Following Moss Adams Merger

ARQ, Inc. has appointed Baker Tilly US, LLP as its new independent registered public accounting firm, succeeding Moss Adams, LLP, following Moss Adams' merger with Baker Tilly, with no reported disagreements or issues during the transition.

Summary

• ARQ, Inc. (the "Company") announced a change in its independent registered public accounting firm.
• Effective June 3, 2025, Moss Adams, LLP ("Moss Adams"), the Company's previous auditor, merged with Baker Tilly US, LLP, with the combined audit practices operating as Baker Tilly US, LLP ("Baker Tilly").
• As a result of the merger, Moss Adams resigned, and ARQ's Audit Committee approved the appointment of Baker Tilly to succeed Moss Adams.
• Audit reports issued by Moss Adams for the years ended December 31, 2024, and 2023, did not contain any adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
• There were no disagreements with Moss Adams on accounting principles, financial statement disclosure, or auditing scope/procedure during the years ended December 31, 2024 and 2023, or the subsequent interim period.
• No reportable events requiring disclosure under Item 304(a)(1)(v) of Regulation S-K occurred.
• ARQ, Inc. did not consult with Baker Tilly on accounting principles or audit opinions, nor were there any disagreements or reportable events, prior to Baker Tilly's appointment.
• Moss Adams confirmed its agreement with the statements made in the Form 8-K in a letter dated June 9, 2025, filed as Exhibit 16.1.

Sentiment

Score: 7

Explanation: The sentiment is positive because the change in auditors is a result of an external event (accounting firm merger) rather than internal issues at ARQ, Inc. The filing explicitly states there were no disagreements, adverse opinions, or reportable events, indicating a smooth and routine transition without negative implications for the company's financial reporting integrity.

Positives

• The transition of auditors was a result of a merger between accounting firms, not due to any issues with ARQ, Inc.'s financial reporting or internal controls.
• Moss Adams' audit reports for 2023 and 2024 contained no adverse opinions, disclaimers, or qualifications, indicating clean audits.
• There were no disagreements on accounting principles or auditing procedures with Moss Adams, nor any reportable events, ensuring a smooth transition.
• The Audit Committee promptly approved the successor firm, maintaining continuity in audit oversight.

Future Outlook

The document does not provide any forward-looking statements or guidance regarding ARQ, Inc.'s future financial performance or strategic direction, focusing solely on the change in its independent registered public accounting firm.

Management Comments

• The Audit Committee of the Company's Board of Directors approved the appointment of Baker Tilly to succeed Moss Adams as the Company's independent registered public accounting firm.
• Robert Rasmus, Chief Executive Officer, signed the report on behalf of Arq, Inc.

Industry Context

The merger of accounting firms like Moss Adams and Baker Tilly is a common occurrence in the professional services industry, driven by consolidation trends, expansion of service offerings, and pursuit of greater market share. For publicly traded companies, such mergers often necessitate a change in their independent auditors, as the acquiring firm typically assumes the audit engagement. This event reflects a routine administrative change for ARQ, Inc. rather than a reflection of its financial health or operational performance.

Corporate Governance

Stakeholder Impact

• Shareholders: Provides assurance of continued independent oversight of financial statements, maintaining confidence in financial reporting integrity.
• Employees: No direct impact on ARQ, Inc. employees mentioned.
• Customers/Suppliers: No direct impact on customer or supplier relationships mentioned.
• Creditors: Maintains confidence in the reliability of financial statements used for credit assessments.

Next Steps

• Baker Tilly US, LLP will now serve as ARQ, Inc.'s independent registered public accounting firm for future audits.

Key Dates

Keywords

ARQ Inc., Moss Adams, Baker Tilly, Auditor Change, Independent Registered Public Accounting Firm, SEC Filing, Form 8-K, Corporate Governance, Audit Committee, Financial Reporting