8-K: Balance Labs Appoints New Independent Auditor, M&K CPAS, Replacing Assurance Dimensions

Balance Labs, Inc. has changed its independent registered public accounting firm from Assurance Dimensions, LLC to M&K CPAS, PLLC, effective immediately.

Summary

• Balance Labs, Inc. has appointed M&K CPAS, PLLC as their new independent registered public accounting firm for the fiscal year ending December 31, 2024.
• This change was approved by the Board of Directors on December 11, 2024.
• Assurance Dimensions, LLC was dismissed as the company's independent auditor, also effective December 11, 2024.
• Assurance Dimensions' reports on the company's financials for 2022 and 2023 did not contain any adverse opinions or disclaimers, but did include an explanatory paragraph about the company's ability to continue as a going concern.
• There were no disagreements between Balance Labs and Assurance Dimensions regarding accounting principles, financial statement disclosures, or auditing procedures.
• The company did not consult with M&K CPAS regarding accounting principles or the type of audit opinion prior to their appointment.

Sentiment

Score: 5

Explanation: The change in auditors is neutral, but the going concern note from the previous auditor is a negative factor. The lack of disagreements is a positive.

Positives

• The transition to a new auditor was completed without any reported disagreements or issues with the previous auditor.
• Assurance Dimensions confirmed they agree with the statements made by Balance Labs regarding their firm.

Negatives

• Assurance Dimensions' audit reports for 2022 and 2023 included an explanatory paragraph about the company's ability to continue as a going concern, which could be a concern for investors.

Risks

• The change in auditors could potentially raise questions from investors or regulators, although no issues were reported.
• The going concern note in the previous auditor's report indicates potential financial instability.

Industry Context

Changes in auditors are not uncommon, but they can sometimes signal underlying issues or a desire for a fresh perspective on a company's financials. The fact that the previous auditor included a going concern note is a significant factor.

Comparison to Industry Standards

• The change of auditors is a common practice, but the inclusion of a going concern note by the previous auditor is not typical and could be a concern for investors.
• Companies in similar situations often face increased scrutiny from investors and regulators following such changes.

Stakeholder Impact

• Shareholders may be concerned about the going concern note in the previous auditor's report.
• The change in auditors could lead to increased scrutiny from investors and regulators.

Next Steps

• M&K CPAS will conduct the audit for the fiscal year ending December 31, 2024.

Key Dates

Keywords

auditor, accounting firm, M&K CPAS, Assurance Dimensions, financial statements, audit, going concern