8-K: BioRestorative Therapies Changes Accounting Firms: Marcum LLP Resigns, CBIZ CPAs P.C. Appointed

BioRestorative Therapies, Inc. announces the resignation of Marcum LLP as its independent registered public accounting firm and the engagement of CBIZ CPAs P.C. effective April 16, 2025.

Summary

• BioRestorative Therapies, Inc. reported a change in its independent registered public accounting firm on April 16, 2025.
• Marcum LLP resigned from this role, and CBIZ CPAs P.C. was engaged as the new firm.
• Marcum's resignation was prompted by CBIZ CPAs P.C.'s acquisition of Marcum's attest business on November 1, 2024.
• Marcum's reports for the fiscal years ended December 31, 2024 and 2023, did not contain adverse opinions or disclaimers, except for an explanatory paragraph regarding the company's ability to continue as a going concern in 2024.
• There were no disagreements between the company and Marcum on accounting principles, practices, financial statement disclosure, or auditing scope during the relevant periods.
• Material weaknesses in internal control over financial reporting were previously identified and disclosed in the company's Form 10-Ks for the fiscal years ended December 31, 2024 and 2023.
• The company did not consult with CBIZ CPAs P.C. regarding accounting principles or the type of audit opinion prior to their engagement.

Sentiment

Score: 4

Explanation: The change in auditors and the disclosure of material weaknesses in internal control, along with the going concern note, raise concerns about the company's financial health, leading to a negative sentiment.

Negatives

• Marcum's audit report for the year ended December 31, 2024, included an explanatory paragraph regarding substantial doubt about the company's ability to continue as a going concern.
• Material weaknesses in internal control over financial reporting were identified in the company's Form 10-Ks for the fiscal years ended December 31, 2024 and 2023.

Risks

• The previously identified material weaknesses in internal control over financial reporting could lead to errors or irregularities in the company's financial statements.
• The explanatory paragraph in Marcum's audit report regarding the company's ability to continue as a going concern raises concerns about the company's financial stability.

Industry Context

Changes in accounting firms are not uncommon, but they can sometimes signal underlying issues with a company's financial reporting or internal controls. Investors often scrutinize these changes to understand the reasons behind them and assess any potential impact on the company's financial statements.

Comparison to Industry Standards

• When a company changes auditors, it is typical to disclose any disagreements with the former auditor and the reasons for the change.
• The disclosure of material weaknesses in internal control is also a standard practice, as required by Sarbanes-Oxley.
• The inclusion of a 'going concern' paragraph in an audit report is a serious matter that can raise concerns among investors and creditors.
• Companies like Amarin Corporation and Opko Health have also faced scrutiny regarding their financial reporting and internal controls, highlighting the importance of these issues in the biotech industry.

Stakeholder Impact

• Shareholders may be concerned about the change in auditors and the disclosed material weaknesses in internal control.
• Creditors may be concerned about the company's ability to continue as a going concern.

Key Dates

Keywords

accounting firm, CBIZ CPAs P.C., Marcum LLP, independent auditor, financial reporting, BioRestorative Therapies