8-K: HG Holdings Appoints BDO as New Auditor

HG Holdings, Inc. announced the appointment of BDO USA, P.C. as its new independent registered public accounting firm, effective November 1, 2025, following Horne LLP's staff joining BDO.

Summary

• HG Holdings, Inc. was notified on October 30, 2025, that the partners and professional staff of Horne LLP, its independent registered public accounting firm, would join BDO USA, P.C.
• Effective November 1, 2025, Horne LLP resigned as the Company's independent registered public accounting firm.
• The Company, with the approval of its Audit Committee, appointed BDO USA, P.C. as its new independent registered public accounting firm, also effective November 1, 2025.
• Prior to engaging BDO, neither the Company nor anyone on its behalf consulted with BDO regarding accounting principles or audit opinions.
• Reports from Horne LLP for the years ended December 31, 2024, and 2023, did not contain any adverse opinion, disclaimer of opinion, or qualifications.
• There were no disagreements with Horne LLP on accounting principles, financial statement disclosure, or auditing scope or procedures during the years ended December 31, 2024 and 2023, and through November 1, 2025.

Sentiment

Score: 7

Explanation: The filing indicates a smooth, administrative transition of auditing services with no reported disagreements or issues with the previous auditor, which is a neutral to slightly positive sign for corporate governance and financial reporting integrity.

Positives

• The transition of auditing services is a result of Horne LLP's staff joining BDO USA, P.C., suggesting continuity of personnel and knowledge.
• No disagreements or reportable events were identified with the previous auditor, Horne LLP, indicating a clean audit history and sound financial reporting practices.
• Horne LLP's audit reports for the fiscal years 2024 and 2023 were unqualified, providing assurance on the accuracy of past financial statements.

Risks

• Potential for minor administrative disruption during the transition period to a new auditing firm, although this is mitigated by the continuity of staff from Horne LLP joining BDO.

Future Outlook

The filing does not provide specific forward-looking statements or guidance beyond the effective date of the auditor change.

Management Comments

• The Company, through and with the approval of the Audit Committee of the Company's Board of Directors, appointed BDO as its independent registered public accounting firm.

Industry Context

Changes in independent registered public accounting firms are common, especially when accounting firms merge or their partners transition to other firms. This event reflects a standard administrative change following the integration of Horne LLP's professionals into BDO USA, P.C., a major global accounting network. Such transitions typically aim to ensure continuity of audit services for clients.

Corporate Governance

Stakeholder Impact

• Shareholders: Provides assurance of continued independent audit oversight without any reported issues from the previous auditor, maintaining confidence in financial reporting.
• Management: Ensures compliance with SEC regulations regarding auditor changes and maintains external financial scrutiny, which is crucial for corporate accountability.

Next Steps

• BDO USA, P.C. will serve as the independent registered public accounting firm for HG Holdings, Inc. going forward.

Key Dates

Recommendation

This filing details a routine administrative change in the company's independent registered public accounting firm due to a merger of accounting firms. It does not contain any information related to the company's financial performance, operational outlook, or strategic direction that would warrant a change in investment recommendation. The absence of disagreements with the prior auditor is a positive sign for corporate governance, but the event itself is neutral to the company's intrinsic value.

Keywords

HG Holdings, BDO USA, Horne LLP, Auditor Change, Independent Registered Public Accounting Firm, SEC Filing, Form 8-K, Corporate Governance, Audit Committee