8-K: Longeveron Inc. Changes Accounting Firms: Marcum LLP Resigns, CBIZ CPAs P.C. Engaged

Longeveron Inc. announces the resignation of Marcum LLP as its independent registered public accounting firm and the engagement of CBIZ CPAs P.C. as its new auditor, effective March 13, 2025.

Summary

• Longeveron Inc. reported that Marcum LLP resigned as their independent registered public accounting firm on March 13, 2025.
• The resignation was approved by the Company's Audit Committee and Board of Directors.
• Marcum's audit reports for the fiscal years ended December 31, 2024 and 2023 included an explanatory paragraph regarding the Company's ability to continue as a going concern.
• There were no disagreements or reportable events between Longeveron and Marcum during the fiscal years ended December 31, 2024 and 2023, and the subsequent interim period through March 13, 2025.
• CBIZ CPAs P.C. was engaged as the Company's new independent registered public accounting firm for the fiscal year ending December 31, 2025, also effective March 13, 2025.
• The Company did not consult with CBIZ regarding accounting principles or the type of audit opinion prior to their engagement.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While the change in accounting firms itself isn't inherently negative, the prior 'going concern' qualification introduces some concern.

Positives

• The transition to a new accounting firm appears to be amicable, with Marcum agreeing with the statements made by Longeveron in the Form 8-K.
• There were no disagreements or reportable events between Longeveron and Marcum, suggesting a smooth relationship.

Negatives

• Marcum's audit reports for 2024 and 2023 included an explanatory paragraph regarding Longeveron's ability to continue as a going concern, which could be a concern for investors.

Risks

• The change in accounting firms could potentially lead to increased scrutiny from investors and regulators.
• The going concern qualification in Marcum's audit reports raises concerns about the company's financial stability.

Future Outlook

The company will be working with CBIZ CPAs P.C. for the fiscal year ending December 31, 2025.

Industry Context

Changes in accounting firms are not uncommon, but they can sometimes signal underlying issues within a company. Investors often pay close attention to these changes, especially when coupled with going concern qualifications.

Comparison to Industry Standards

• The Big Four accounting firms (Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers) are generally considered the gold standard in the industry, providing audit services to the largest and most complex companies globally.
• Marcum LLP is a large regional firm, but not in the same league as the Big Four.
• CBIZ is a national professional services company, but also not in the same league as the Big Four.
• The inclusion of a 'going concern' paragraph is a serious matter, and is not typical for companies with strong financials.
• Comparatively, companies like Johnson & Johnson or Apple rarely, if ever, have such qualifications in their audit reports.

Stakeholder Impact

• Shareholders may be concerned about the change in accounting firms and the previous 'going concern' qualification.
• Employees may experience uncertainty due to the company's financial situation.

Key Dates