8-K: StableX Changes Auditor Amid Control Weaknesses

StableX Technologies, Inc. has dismissed CBIZ CPAs P.C. and appointed Stephano Slack LLC as its new independent auditor, citing material weaknesses in internal financial controls.

Summary

• StableX Technologies, Inc. dismissed CBIZ CPAs P.C. as its independent registered public accounting firm on September 18, 2025.
• CBIZ CPAs P.C. did not issue any audit reports during its engagement period from April 10, 2025, to September 18, 2025.
• The dismissal was not due to disagreements on accounting principles or practices.
• The company reported material weaknesses in its internal control over financial reporting, including: (i) inability to document, formalize, implement, and revise controls, policies, and procedures (including IT controls) consistent with current personnel and resources; (ii) failure to document, maintain, and test effective control activities over the control environment, risk assessment, information technology, and monitoring components; and (iii) insufficient segregation of duties, oversight of work performed, and lack of compensating controls in finance and accounting functions due to limited personnel and resources.
• These material weaknesses were previously disclosed in the company's Annual Report for the fiscal year ended December 31, 2024.
• On September 19, 2025, the Audit Committee engaged Stephano Slack LLC as the new independent registered public accounting firm for the fiscal year ending December 31, 2025.
• Neither the company nor anyone on its behalf consulted with Stephano Slack LLC regarding accounting principles or audit opinions prior to their engagement.

Sentiment

Score: 3

Explanation: The repeated change of auditors and the explicit disclosure of material weaknesses in internal controls over financial reporting are significant negative indicators. While a new auditor has been appointed, the underlying issues suggest operational and governance challenges that could impact financial reliability and investor confidence.

Positives

• The company has appointed a new independent registered public accounting firm, Stephano Slack LLC, to ensure continuity of audit services.
• There were no disagreements with the dismissed auditor, CBIZ CPAs P.C., on matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures.

Negatives

• The company has changed its independent registered public accounting firm twice within a short period (Marcum LLP dismissed April 10, 2025; CBIZ CPAs P.C. dismissed September 18, 2025).
• Persistent material weaknesses in internal control over financial reporting were identified, indicating significant deficiencies in the company's financial oversight.
• The material weaknesses include inadequate documentation of controls, ineffective control activities, and insufficient segregation of duties in finance and accounting functions due to limited personnel and resources.

Risks

• The identified material weaknesses in internal control over financial reporting increase the risk of financial misstatements and potential restatements.
• Inadequate internal controls can lead to a lack of reliable financial information, impacting investor confidence and decision-making.
• The repeated change of auditors may raise concerns among investors and regulatory bodies regarding the company's financial reporting integrity and corporate governance.
• Limited personnel and resources in finance and accounting functions contribute to the material weaknesses, posing an ongoing challenge to remediation.

Future Outlook

The company has appointed Stephano Slack LLC as its independent registered public accounting firm for the fiscal year ending December 31, 2025, indicating an intention to continue with regular financial audits. The company will need to address the disclosed material weaknesses in internal control over financial reporting.

Management Comments

• Joshua Silverman, Chief Executive Officer, signed the report on behalf of StableX Technologies, Inc.

Industry Context

Frequent auditor changes and persistent material weaknesses in internal controls can significantly impact a company's credibility and investor confidence within the financial markets. Such issues often lead to increased scrutiny from regulators and can signal underlying operational or financial instability, potentially affecting the company's valuation and access to capital compared to industry peers with robust financial reporting frameworks.

Comparison to Industry Standards

• Material weaknesses in internal control over financial reporting are a significant deviation from industry best practices and regulatory expectations (e.g., Sarbanes-Oxley Act requirements).
• Companies typically strive for effective internal controls to ensure the accuracy and reliability of financial statements, a standard that StableX Technologies, Inc. is currently not meeting.
• The repeated change of auditors within a short timeframe is unusual and often viewed negatively compared to companies with long-standing auditor relationships, which can signal stability and consistent financial oversight.

Corporate Governance

Stakeholder Impact

• Shareholders face increased risk due to potential unreliability of financial statements and the possibility of future restatements, which could negatively impact share price.
• Investors may lose confidence in the company's financial reporting and corporate governance due to the repeated auditor changes and persistent material weaknesses.
• Regulatory bodies, such as the SEC, will likely scrutinize the company's efforts to remediate the identified internal control deficiencies.
• Employees in finance and accounting functions may experience increased pressure and workload to address the control weaknesses and implement new procedures.

Next Steps

• Stephano Slack LLC will serve as the independent registered public accounting firm for the fiscal year ending December 31, 2025.
• The company is expected to take steps to remediate the identified material weaknesses in its internal control over financial reporting.

Key Dates

Recommendation

The repeated change of independent auditors within a short period, coupled with the explicit disclosure of material weaknesses in internal control over financial reporting, signals significant governance and operational risks. These weaknesses, including inadequate documentation, ineffective control activities, and insufficient segregation of duties, raise serious concerns about the reliability of the company's financial statements and its ability to prevent or detect material misstatements. Such issues typically lead to increased scrutiny, potential restatements, and erosion of investor confidence, making the stock a high-risk investment with a negative outlook.

Keywords

StableX Technologies, AYRO, Auditor change, Independent registered public accounting firm, CBIZ CPAs, Stephano Slack, Internal control over financial reporting, Material weakness, Corporate governance, Financial reporting, SEC filing, 8-K, SBLX