8-K: Delcath Systems Announces Change in Independent Registered Accounting Firm

Delcath Systems, Inc. reports that Marcum LLP has resigned as their independent registered accounting firm, and CBIZ CPAs has been engaged as the new firm, effective immediately.

Summary

• Delcath Systems, Inc. announced that Marcum LLP resigned as their independent registered accounting firm on March 18, 2025.
• CBIZ CPAs was engaged as the company's new independent registered public accounting firm, effective immediately, for the fiscal year ending December 31, 2025.
• The change was approved by the Audit Committee of the Company's Board of Directors.
• Marcum's reports on the company's financial statements for the fiscal years ended December 31, 2024 and December 31, 2023, did not contain any adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles, except that the report for the fiscal year ended December 31, 2023 included an explanatory paragraph relating to substantial doubt about the Company's ability to continue as a going concern.
• There were no disagreements or reportable events between Delcath Systems and Marcum during the fiscal years ended December 31, 2024 and December 31, 2023, and through March 18, 2025.
• Delcath Systems did not consult with CBIZ CPAs regarding accounting principles or audit opinions during the specified periods.
• Marcum has provided a letter to the SEC agreeing with the statements made by Delcath Systems regarding their resignation.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While the change in accounting firms itself isn't inherently negative, the prior 'going concern' warning introduces a level of concern. The smooth transition mitigates some of the potential negative sentiment.

Positives

• The transition to a new accounting firm appears to be smooth, with no reported disagreements between Delcath Systems and Marcum.
• Marcum's letter to the SEC confirms their agreement with Delcath Systems' statements regarding the change in accounting firms.

Negatives

• Marcum's audit report for the fiscal year ended December 31, 2023, included an explanatory paragraph relating to substantial doubt about the Company's ability to continue as a going concern, which indicates potential financial instability.

Risks

• The change in accounting firms could potentially lead to increased scrutiny of Delcath Systems' financial statements.
• The previous going concern warning from Marcum raises concerns about the company's long-term financial viability.

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 health. The acquisition of Marcum's attest business by CBIZ CPAs is a relevant factor in this specific change.

Comparison to Industry Standards

• It's common for companies to switch auditors periodically, but the circumstances surrounding the change are crucial.
• A smooth transition, as indicated by Marcum's agreement with Delcath's statements, is generally viewed positively.
• However, the previous 'going concern' warning is a red flag that requires careful monitoring, as it suggests potential financial distress, similar to situations observed in other companies facing liquidity challenges.

Stakeholder Impact

• Shareholders may be concerned about the change in accounting firms and the previous 'going concern' warning.
• Employees may experience uncertainty if the company's financial stability is questioned.
• Creditors may reassess their risk exposure to Delcath Systems.

Key Dates

Keywords

accounting firm, CBIZ CPAs, Marcum LLP, Delcath Systems, independent auditor, resignation, financial statements, audit committee