8-K: PAVmed Inc. Announces Change in Independent Registered Public Accounting Firm Following CBIZ CPAs Acquisition of Marcum LLP's Attest Business

PAVmed Inc. reports a change in its independent registered public accounting firm from Marcum LLP to CBIZ CPAs following CBIZ's acquisition of Marcum's attest business.

Summary

• PAVmed Inc. announced that Marcum LLP resigned as its independent registered public accounting firm on April 23, 2025.
• This change was a direct result of CBIZ CPAs P.C.'s acquisition of Marcum LLP's attest business on November 1, 2024.
• With the approval of the audit committee, PAVmed Inc. engaged CBIZ CPAs as its new independent registered public accounting firm, effective April 23, 2025.
• The audit report from Marcum for the fiscal years ended December 31, 2024 and 2023 did not contain any adverse opinions, disclaimers, or qualifications, except for an explanatory paragraph regarding the company's ability to continue as a going concern.
• There were no disagreements or reportable events between PAVmed Inc. and Marcum LLP during the specified periods.
• PAVmed Inc. confirmed that it did not consult with CBIZ CPAs regarding accounting principles or audit opinions prior to the engagement.
• Marcum LLP provided a letter to the SEC agreeing with the statements made by PAVmed Inc. regarding their resignation.

Sentiment

Score: 6

Explanation: The announcement is neutral, simply reporting a change in accounting firms due to an acquisition. The going concern note in the previous auditor's report is a slight negative.

Positives

• The transition of accounting firms appears to be smooth, with no reported disagreements or reportable events.
• Marcum LLP's audit report did not contain any adverse opinions or disclaimers.

Negatives

• Marcum's audit report included an explanatory paragraph regarding the company's ability to continue as a going concern, which could be a concern for investors.

Risks

• The explanatory paragraph in Marcum's audit report regarding PAVmed's ability to continue as a going concern could raise concerns about the company's financial stability.

Industry Context

Changes in accounting firms are not uncommon, especially following mergers and acquisitions within the accounting industry. Companies are required to disclose such changes to maintain transparency with investors.

Comparison to Industry Standards

• The engagement of a new auditor following an acquisition is a standard practice.
• Companies like General Electric, which switched from KPMG to Deloitte, and Tesla, which replaced PricewaterhouseCoopers with Ernst & Young, have also undergone auditor changes.
• The disclosure of no disagreements during the auditor change is consistent with industry best practices.

Stakeholder Impact

• Shareholders should be aware of the change in accounting firm, although it is not expected to have a significant impact.
• The change ensures continued compliance with regulatory requirements for financial reporting.

Key Dates

Keywords

accounting firm, CBIZ CPAs, Marcum LLP, audit, resignation, PAVmed Inc.