8-K: Emmaus Life Sciences Appoints CBIZ CPAs as New Independent Auditor Following Marcum LLP Acquisition

Emmaus Life Sciences replaced its independent auditor from Marcum LLP to CBIZ CPAs following CBIZ's acquisition of Marcum's attest business.

Summary

• Emmaus Life Sciences, Inc. announced a change in its independent registered public accounting firm.
• On November 1, 2024, CBIZ CPAs P.C. acquired the attest business of Marcum LLP.
• As a result, on May 2, 2025, Marcum LLP resigned as Emmaus Life Sciences' auditor, and CBIZ CPAs was engaged as the new auditor with the approval of the Audit Committee.
• Marcum LLP's audit report for the fiscal year ended December 31, 2024, did not contain an adverse opinion or disclaimer, but included a paragraph indicating substantial doubt about the company's ability to continue as a going concern.
• There were no disagreements or reportable events between Emmaus Life Sciences and Marcum LLP during the fiscal year ended December 31, 2024, and through May 2, 2025.
• Emmaus Life Sciences did not consult with CBIZ CPAs on accounting principles or audit opinions prior to their engagement.

Sentiment

Score: 5

Explanation: The sentiment is neutral as it primarily reports a change in auditors due to an acquisition. The mention of a 'going concern' paragraph in the previous auditor's report is a concern, but the change itself is a procedural matter.

Positives

• The transition to CBIZ CPAs was approved by the Audit Committee of the Board of Directors.
• Marcum LLP's audit report did not contain an adverse opinion or disclaimer.

Negatives

• Marcum LLP's audit report for the fiscal year ended December 31, 2024, included a paragraph indicating substantial doubt about the company's ability to continue as a going concern.

Risks

• The audit report from Marcum LLP raised concerns about the company's ability to continue as a going concern, which could impact investor confidence.

Industry Context

Changes in auditing firms are common, especially following acquisitions or mergers within the accounting industry. Companies are required to disclose such changes to maintain transparency with investors.

Comparison to Industry Standards

• The disclosure of a change in auditors is a standard practice and is in line with SEC regulations.
• The inclusion of a 'going concern' paragraph in the audit report is not uncommon for companies facing financial difficulties, and it is the auditor's responsibility to highlight such concerns.

Stakeholder Impact

• Shareholders should be aware of the change in auditors and the previous auditor's concerns about the company's ability to continue as a going concern.
• The change in auditors may have a minimal impact on employees.

Key Dates

Keywords

auditor, CBIZ CPAs, Marcum LLP, Emmaus Life Sciences, accounting firm, audit committee