8-K: Milestone Scientific Changes Independent Auditor

Milestone Scientific Inc. has announced the dismissal of CBIZ CPAs P.C. and the appointment of Grassi & Co., CPAs, P.C. as its new independent auditor.

Summary

• Milestone Scientific Inc. dismissed CBIZ CPAs P.C. as its independent registered public accounting firm, effective May 15, 2026.
• The company has engaged Grassi & Co., CPAs, P.C. to serve as its independent auditor for the fiscal year ending December 31, 2026.
• The change was approved by the Audit Committee of the Board of Directors.
• CBIZ CPAs' report for the year ended December 31, 2025, included a going concern qualification.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a neutral-to-negative event; while the auditor change itself is administrative, the underlying going concern qualification remains a significant risk factor for shareholders.

Positives

• The transition to a new auditor appears orderly with no reported disagreements on accounting principles or practices.
• CBIZ CPAs confirmed in a letter to the SEC that they agree with the company's statements regarding the dismissal.

Negatives

• The company's most recent financial statements for the year ended December 31, 2025, contained a going concern qualification, indicating substantial doubt about the company's ability to continue operations.

Risks

• Substantial doubt regarding the company's ability to continue as a going concern as noted in the 2025 audit report.

Future Outlook

The company has engaged Grassi & Co. to perform the audit for the fiscal year ending December 31, 2026.

Industry Context

StockSavvy.ai notes that auditor changes, while routine, are often scrutinized by investors when accompanied by going concern qualifications, as they may signal internal efforts to address financial stability or reporting challenges.

Comparison to Industry Standards

• Auditor changes are standard corporate governance procedures.
• The presence of a going concern qualification is a significant red flag compared to stable, profitable industry peers.

Corporate Governance

Stakeholder Impact

• Shareholders should monitor the company's financial stability given the going concern qualification.
• The change in auditor may impact the timeline or process of future financial reporting.

Next Steps

• Transition audit responsibilities to Grassi & Co. by May 15, 2026.
• Prepare for the 2026 fiscal year audit.

Key Dates

Recommendation

Investors should maintain a hold position until the company demonstrates a clear path to resolving the going concern issue and improving its financial health under the new audit firm.

Keywords

Milestone Scientific, MLSS, Auditor Change, Grassi & Co, CBIZ CPAs, Going Concern, SEC Filing