8-K: Harvard Apparatus Regenerative Technology Changes Accounting Firms: Marcum LLP Resigns, CBIZ CPAs P.C. Appointed

Harvard Apparatus Regenerative Technology, Inc. announces a change in its independent registered public accounting firm, with Marcum LLP resigning and CBIZ CPAs P.C. being appointed, effective April 11, 2025.

Summary

• Harvard Apparatus Regenerative Technology, Inc. (the Registrant) has changed its independent registered public accounting firm.
• Marcum LLP resigned as the Registrant's independent registered public accounting firm on April 11, 2025.
• The Registrant engaged CBIZ CPAs P.C. as its new independent registered public accounting firm, effective April 11, 2025, with the approval of the Audit Committee.
• Marcum's reports on the Registrant's financial statements for the fiscal years ended December 31, 2024 and December 31, 2023, did not contain an adverse opinion or a disclaimer of opinion, but included a paragraph expressing substantial doubt about the Company's ability to continue as a going concern.
• There were no disagreements with Marcum on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure during the Registrant's two most recent fiscal years and the subsequent interim period through April 14, 2025.
• The Registrant provided Marcum with a copy of the disclosures regarding the change in accounting firms, and Marcum concurred with the statements made by the Registrant concerning its dismissal.

Sentiment

Score: 4

Explanation: The change in auditors and the prior 'going concern' warning raise concerns, but the smooth transition and concurrence from the previous auditor mitigate some of the negative sentiment.

Positives

• Marcum LLP concurred with the statements made by Harvard Apparatus Regenerative Technology, Inc. regarding its dismissal as the Registrant's independent registered public accounting firm.
• The transition to CBIZ CPAs P.C. was approved by the Audit Committee of the Registrant's Board of Directors.

Negatives

• Marcum's reports on the Registrant's financial statements for the fiscal years ended December 31, 2024 and December 31, 2023, included a paragraph expressing substantial doubt about the Company's ability to continue as a going concern.

Risks

• The inclusion of a going concern paragraph in Marcum's audit reports for the past two fiscal years indicates potential financial instability for Harvard Apparatus Regenerative Technology, Inc.

Industry Context

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

Comparison to Industry Standards

• It is difficult to compare this event to industry standards without knowing the specific reasons for the auditor change.
• Auditor changes can be triggered by various factors, including mergers and acquisitions of accounting firms (as seen with CBIZ acquiring Marcum's attest business), disagreements over accounting practices, or concerns about the company's financial health.
• The inclusion of a going concern warning is a serious matter and suggests that the company's financial situation requires close monitoring.

Stakeholder Impact

• Shareholders may be concerned about the change in auditors and the previously issued going concern warning.
• The company's ability to secure financing could be affected by the going concern warning.

Key Dates

Keywords

accounting firm, CBIZ CPAs P.C., Marcum LLP, independent auditor, Harvard Apparatus Regenerative Technology, auditor resignation, going concern