8-K: Mosaic ImmunoEngineering Changes Accounting Firms as KMJ Corbin & Company LLP Resigns

Mosaic ImmunoEngineering has changed its independent registered public accounting firm from KMJ Corbin & Company LLP to Rose, Snyder & Jacobs LLP, effective May 22, 2024.

Summary

• Mosaic ImmunoEngineering, Inc. has announced that KMJ Corbin & Company LLP resigned as their independent registered public accounting firm on May 21, 2024.
• The resignation was due to KMJ's partners and professional staff joining Crowe LLP.
• The company's Audit Committee approved the resignation on the same day.
• KMJ's audit reports for the fiscal years ended December 31, 2023 and 2022 did not contain any adverse opinions or disclaimers, but included an explanatory paragraph about the company's ability to continue as a going concern.
• There were no disagreements between Mosaic and KMJ on accounting principles, financial statement disclosures, or auditing scope.
• Mosaic has engaged Rose, Snyder & Jacobs LLP as its new independent registered public accounting firm, effective May 22, 2024.
• The company did not consult with Rose, Snyder & Jacobs LLP on any accounting or auditing matters prior to their engagement.

Sentiment

Score: 4

Explanation: The change in auditors is not inherently negative, but the going concern warning from the previous auditor is a significant concern. The lack of any other information makes it difficult to be more positive.

Positives

• The transition to a new auditor was completed quickly, with Rose, Snyder & Jacobs LLP engaged the day after KMJ's resignation.
• There were no disagreements between the company and the previous auditor, KMJ, on any accounting or auditing matters.

Negatives

• KMJ's audit reports for the past two fiscal years included an explanatory paragraph indicating substantial doubt about the company's ability to continue as a going concern.

Risks

• The going concern warning from the previous auditor could raise concerns about the company's financial stability.
• Changing auditors can sometimes lead to increased scrutiny and potential delays in financial reporting.

Management Comments

• The company has not provided any specific comments in this document.

Industry Context

Changes in auditors are not uncommon, but the reason for the change, in this case, the previous firm's staff joining another firm, is less typical. The going concern warning is a significant issue that will likely be closely watched by investors.

Comparison to Industry Standards

• The change of auditors is not unusual, but the circumstances of the change, with the previous firm's staff moving to another firm, is less common.
• The going concern warning is a significant issue that is not typical for companies that are considered financially stable.
• Companies like BioNTech and Moderna, which are also in the biotech space, have not had similar going concern issues in their recent filings.

Stakeholder Impact

• Shareholders may be concerned about the going concern warning and the change in auditors.
• Creditors may also be concerned about the company's ability to continue as a going concern.

Key Dates

Keywords

auditor, accounting firm, KMJ Corbin & Company LLP, Rose, Snyder & Jacobs LLP, resignation, going concern, financial statements, audit