8-K: Myomo Announces Board Changes and Auditor Transition

Myomo, Inc. announces the resignation of two board members and the engagement of a new independent registered public accounting firm following an acquisition.

Summary

• Myomo, Inc. announced that Amy Knapp and Yitzchak Jacobovitz will not stand for reelection to the Board of Directors at the 2025 annual meeting.
• Mr. Jacobovitz will transition to the role of Board Observer.
• The company engaged CBIZ CPAs as its independent registered public accounting firm, effective April 8, 2025, following Marcum LLP's resignation.
• Marcum LLP resigned after CBIZ CPAs acquired Marcum's attest business, effective November 1, 2024.
• Marcum's reports on the company's financial statements for the fiscal years ended December 31, 2024 and 2023 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles.

Sentiment

Score: 7

Explanation: The announcement is neutral to slightly positive. The board changes are presented as planned transitions, and management expresses confidence in the company's future. The auditor change is due to an acquisition, which is a common business event.

Positives

• The transition of Yitzchak Jacobovitz to a Board Observer role suggests continued involvement and support for the company.
• The company has thanked Ms. Knapp and Mr. Jacobovitz for their years of service as directors.
• Marcum's reports on the company's financial statements for the fiscal years ended December 31, 2024 and 2023 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles.

Negatives

• The departure of two board members could lead to a temporary gap in expertise or institutional knowledge.
• A material weakness related to a lack of design and maintenance of effective information technology general controls was disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Risks

• The company acknowledges uncertainties related to market conditions that could affect forward-looking statements.
• The company's future performance is subject to risks and uncertainties detailed in its SEC filings, including the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Future Outlook

The company plans to name additional directors in the future as it continues to evolve its governance and strategic oversight.

Management Comments

• Paul R. Gudonis, chairman and chief executive officer, expressed gratitude for the contributions of Amy Knapp and Yitzchak Jacobovitz.
• Ms. Knapp stated she was gratified to have played a role in the growth and success of the company and is pleased to continue advising the Company on reimbursement matters.
• Mr. Jacobovitz stated he is highly confident in the Company's strategic direction, its financial position and its trajectory toward achieving sustainable positive cash flow and looks forward to actively supporting and advising the Company as a non-voting board observer.

Industry Context

Changes in auditors are common, especially following acquisitions. Board member transitions are a normal part of corporate governance.

Management Changes

Stakeholder Impact

• Shareholders may be impacted by changes in the Board of Directors.
• The transition to a new auditor could affect investor confidence, although the company states there were no disagreements with the previous auditor.

Next Steps

• The company plans to name additional directors.
• Yitzchak Jacobovitz will transition to the role of Board Observer.
• The company will hold its 2025 Annual Meeting in June 2025.

Key Dates

Keywords

Board of Directors, Auditor, Myomo, Corporate Governance, Accounting, Resignation, Reelection