8-K: Milestone Scientific Changes Auditors, Engaging CBIZ CPAs After Marcum LLP Resignation

Milestone Scientific Inc. announces the resignation of Marcum LLP as its independent auditor and the engagement of CBIZ CPAs, effective April 22, 2025.

Summary

• Milestone Scientific Inc. has changed its independent registered public accounting firm.
• Marcum LLP resigned as the company's auditor on April 22, 2025.
• CBIZ CPAs was engaged as the new independent registered public accounting firm, effective immediately on April 22, 2025.
• The Audit Committee of the Company's Board of Directors approved the engagement of CBIZ CPAs.
• Marcum's audit reports for the fiscal years ended December 31, 2024 and 2023 did not contain any adverse opinions, disclaimers, or qualifications.
• There were no disagreements between Milestone Scientific and Marcum regarding accounting principles, financial statement disclosure, or auditing scope during the relevant periods.
• No reportable events occurred during the fiscal years ended December 31, 2024 and 2023, and the subsequent interim period through April 22, 2025.
• Milestone Scientific did not consult with CBIZ CPAs on accounting principles or audit opinions prior to their engagement.

Sentiment

Score: 7

Explanation: The announcement is neutral to slightly positive. The change in auditors appears to be a procedural matter related to an acquisition, and there are no indications of any underlying issues or disagreements.

Positives

• Marcum's reports on the company's consolidated financial statements for the fiscal years ended December 31, 2024 and 2023 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles.
• There were no disagreements between the Company and Marcum on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.
• There were no 'reportable events' as defined in Item 304(a)(1)(v) of Regulation S-K.

Risks

• A change in auditors can sometimes signal underlying issues, although the document states there were no disagreements or reportable events.

Industry Context

Changes in auditors are not uncommon, but investors often scrutinize the reasons behind such changes. In this case, it appears to be related to an acquisition of Marcum's attest business by CBIZ CPAs.

Comparison to Industry Standards

• Auditor changes are a normal part of corporate governance, but the circumstances surrounding the change are always important.
• Companies like General Electric, which switched from KPMG to Deloitte, or Tesla, which has used multiple auditors, demonstrate that auditor changes can occur for various reasons, including mergers, acquisitions, or strategic decisions.
• The key is whether the change is accompanied by any disagreements or reportable events, which, according to the filing, is not the case here.

Stakeholder Impact

• Shareholders may want to monitor future filings to ensure a smooth transition with the new auditor.
• Employees in the finance department will likely be involved in the transition to CBIZ CPAs.

Key Dates

Keywords

auditor, CBIZ CPAs, Marcum LLP, Milestone Scientific, accounting firm, audit