8-K: Belpointe PREP Announces Change in Independent Registered Public Accounting Firm

Belpointe PREP, LLC has replaced Citrin Cooperman & Company, LLP with CohnReznick LLP as its independent registered public accounting firm, effective April 17, 2025.

Summary

• Belpointe PREP, LLC announced a change in its independent registered public accounting firm.
• Citrin Cooperman & Company, LLP (Citrin) decided not to stand for re-election due to a strategic shift in focus away from Belpointe PREP's core business sector, effective April 11, 2025.
• Citrin's audit reports for the fiscal years ended December 31, 2024 and 2023, did not contain any adverse opinions, disclaimers, qualifications, or modifications.
• There were no disagreements or reportable events between Belpointe PREP and Citrin during the fiscal years ended December 31, 2024 and 2023, and through the effective date of Citrin's resignation.
• The Audit Committee of the Board of Directors approved the appointment of CohnReznick LLP (CohnReznick) as the new independent registered public accounting firm on April 17, 2025.
• Belpointe PREP did not consult CohnReznick on accounting principles or audit opinions during the fiscal years ended December 31, 2024 and 2023, and through April 17, 2025.
• Both Citrin and CohnReznick provided letters to the Securities and Exchange Commission agreeing with the disclosures made in the Form 8-K.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The change in auditors is not inherently negative, and the company has taken steps to ensure a smooth transition. The stated reason for the change is also not alarming.

Positives

• Citrin Cooperman's audit reports for 2023 and 2024 were clean, with no adverse opinions or qualifications.
• The transition to a new accounting firm appears to be smooth, with both firms providing letters of agreement to the SEC.

Negatives

• Citrin Cooperman decided not to stand for re-election, which could raise concerns about the company's relationship with its auditor, although the stated reason is a strategic shift at Citrin.

Risks

• The change in auditors could potentially lead to increased scrutiny from investors and regulators.
• There is a risk that the new auditor, CohnReznick, may identify issues that were not previously identified by Citrin Cooperman, although this is not suggested in the document.

Future Outlook

The company will be audited by CohnReznick for the fiscal year ending December 31, 2025.

Industry Context

Changes in auditors are not uncommon, but they can sometimes signal underlying issues within a company. In this case, the stated reason for the change appears to be driven by the auditor's strategic shift, which is less concerning than a disagreement between the company and the auditor.

Comparison to Industry Standards

• Auditor changes are a normal part of business, but the circumstances surrounding the change are important to consider.
• Companies like General Electric have experienced significant scrutiny following auditor changes, particularly when accompanied by accounting restatements or disagreements.
• In this case, the transition appears orderly, with both firms cooperating and providing letters to the SEC, which is a positive sign.

Stakeholder Impact

• Shareholders may have questions about the change in auditors, but the company has provided an explanation in the Form 8-K.
• Employees in the finance and accounting departments will need to work with the new auditor, CohnReznick.

Key Dates

Keywords

accounting firm, CohnReznick, Citrin Cooperman, Belpointe PREP, auditor, Form 8-K