8-K: Inspire Veterinary Partners Changes Auditors

Inspire Veterinary Partners, Inc. has dismissed Kreit & Chiu CPA LLP and appointed M&K CPAS, PLLC as its new independent registered public accounting firm, effective October 16, 2025.

Summary

• Inspire Veterinary Partners, Inc. (the "Company") dismissed Kreit & Chiu CPA LLP (K&C) as its independent registered public accounting firm on October 16, 2025.
• The Company appointed M&K CPAS, PLLC (M&K) as its new independent registered public accounting firm, effective October 16, 2025, to audit financial statements for the fiscal year ended December 31, 2025.
• There were no disagreements between the Company and K&C on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure during the two most recent fiscal years (ended December 31, 2024 and 2023) and the subsequent interim period through October 16, 2025.
• K&C advised the Company of material weaknesses in its internal control over financial reporting during the aforementioned period.
• K&C's audit reports for the fiscal years ended December 31, 2024 and 2023 included an explanatory paragraph regarding substantial doubt about the Company's ability to continue as a going concern.
• The Audit Committee of the Board of Directors approved the decision to replace K&C.
• The Company had no consultations with M&K regarding accounting principles, audit opinions, disagreements, or reportable events prior to their engagement.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the disclosure of material weaknesses in internal controls and the previous auditor's 'going concern' explanatory paragraphs for two consecutive fiscal years, indicating significant financial and operational risks. The lack of disagreements with the previous auditor on accounting principles is a minor positive, but it is heavily outweighed by the severe underlying issues.

Positives

• No disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedure were reported between the Company and the dismissed auditor, K&C.
• The change in auditors was approved by the Audit Committee of the Board of Directors, indicating proper corporate governance oversight.

Negatives

• The previous auditor, K&C, advised the Company of material weaknesses in its internal control over financial reporting.
• K&C's audit reports for the fiscal years ended December 31, 2024 and 2023 contained an explanatory paragraph expressing substantial doubt about the Company's ability to continue as a going concern.

Risks

• Material weaknesses in internal control over financial reporting could lead to financial misstatements, fraud, or an inability to accurately report financial results.
• Substantial doubt about the Company's ability to continue as a going concern indicates significant financial instability and potential liquidity issues, posing a risk to long-term viability.

Future Outlook

The filing does not provide specific forward-looking statements or guidance regarding financial performance or operational outlook, beyond the engagement of a new auditor for the fiscal year ended December 31, 2025.

Management Comments

• Kimball Carr, President and Chief Executive Officer, signed the report on behalf of Inspire Veterinary Partners, Inc.
• Kreit & Chiu CPA LLP stated in their letter to the SEC that they agree with the statements made by Inspire Veterinary Partners, Inc. under Item 4.01 of its Form 8-K concerning their firm.

Industry Context

The change in auditors, particularly when accompanied by disclosures of material weaknesses in internal controls and going concern issues, is a significant event that can impact investor confidence. While not directly related to broader industry trends in veterinary services, these issues highlight fundamental financial health and operational stability concerns that are critical for any publicly traded company, regardless of industry.

Comparison to Industry Standards

• The disclosure of material weaknesses in internal control over financial reporting falls below industry best practices for financial transparency and operational integrity, as strong internal controls are a fundamental expectation for public companies.
• The inclusion of a 'going concern' explanatory paragraph by the previous auditor for two consecutive fiscal years (2023 and 2024) indicates a level of financial distress that is significantly worse than healthy, stable companies within the veterinary services industry or broader market benchmarks.

Stakeholder Impact

• Shareholders face increased uncertainty and potential devaluation of their investment due to the disclosed material weaknesses in internal controls and the substantial doubt about the Company's ability to continue as a going concern.

Next Steps

• M&K CPAS, PLLC will audit the Company's consolidated financial statements for the fiscal year ended December 31, 2025.

Key Dates

Recommendation

The presence of material weaknesses in internal control over financial reporting and the previous auditor's explanatory paragraph regarding substantial doubt about the company's ability to continue as a going concern for two consecutive fiscal years (2023 and 2024) indicate severe financial instability and operational risks. These are critical red flags that suggest a high probability of further financial deterioration and significant risk to capital, warranting a strong sell recommendation.

Keywords

Inspire Veterinary Partners, auditor change, Form 8-K, accounting firm, internal controls, going concern, IVP, veterinary services, SEC filing