8-K: BioSig Technologies Changes Accounting Firms: Marcum LLP Resigns, CBIZ CPAs P.C. Engaged

BioSig Technologies announces a change in its independent registered public accounting firm, with Marcum LLP resigning and CBIZ CPAs P.C. being engaged, effective April 30, 2025.

Summary

• BioSig Technologies, Inc. reported a change in its independent registered public accounting firm on April 30, 2025.
• Marcum LLP resigned from this role, and the company engaged CBIZ CPAs P.C. as its new independent registered public accounting firm, with the approval of the Audit Committee.
• Marcum's reports on the company's financial statements for the fiscal years ended December 31, 2024 and 2023, did include an explanatory paragraph regarding substantial doubt about the company's ability to continue as a going concern.
• There were no disagreements with Marcum on accounting principles, financial statement disclosure, or auditing scope during the past two fiscal years and the subsequent interim period.
• Material weaknesses were identified in internal control related to stock-based compensation, review processes, and segregation of duties, as disclosed in the company's Form 10-Ks for 2024 and 2023.
• BioSig Technologies 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 accounting firms and the disclosure of past material weaknesses in internal control raise concerns, leading to a negative sentiment. The inclusion of an explanatory paragraph in the audit reports regarding the company's ability to continue as a going concern further contributes to this negative sentiment.

Positives

• The transition to a new accounting firm was approved by the Audit Committee.
• Marcum LLP agreed with the statements made by BioSig Technologies, Inc. regarding their resignation.

Negatives

• Marcum's audit reports for 2023 and 2024 included an explanatory paragraph about the company's ability to continue as a going concern.
• Material weaknesses in internal control related to stock-based compensation, review processes, and segregation of duties were previously identified.

Risks

• The previously identified material weaknesses in internal control could pose ongoing risks to financial reporting.
• The inclusion of an explanatory paragraph in Marcum's audit reports regarding the company's ability to continue as a going concern indicates potential financial instability.

Industry Context

Changes in accounting firms are not uncommon, but they can raise concerns if they coincide with financial difficulties or disagreements over accounting practices. Investors often scrutinize the reasons behind such changes to assess potential risks.

Comparison to Industry Standards

• When a company changes auditors, it is typical to compare the audit fees and scope of services provided by the previous and new firms.
• Companies like Medtronic or Boston Scientific, which are in a similar industry, are expected to have robust internal controls and transparent financial reporting.
• The presence of material weaknesses in internal control, as disclosed by BioSig, would be considered a deviation from industry best practices.

Stakeholder Impact

• Shareholders may be concerned about the change in accounting firms and the previously identified material weaknesses in internal control.
• Creditors may reassess the company's creditworthiness due to the going concern qualification in the audit reports.

Key Dates

Keywords

accounting firm, CBIZ CPAs P.C., Marcum LLP, independent auditor, internal control, financial reporting, BioSig Technologies