8-K: PharmaCyte Biotech Changes Accounting Firms: Marcum LLP Resigns, CBIZ CPAs P.C. Appointed

PharmaCyte Biotech announces the resignation of Marcum LLP as its independent registered accounting firm and the appointment of CBIZ CPAs P.C., effective February 21, 2025, following Marcum's acquisition of CBIZ's attest business.

Summary

• PharmaCyte Biotech, Inc. announced that Marcum LLP resigned as their independent registered accounting firm on February 21, 2025.
• This decision followed CBIZ CPAs P.C.'s acquisition of Marcum's attest business, effective November 1, 2024.
• The Audit Committee accepted Marcum's resignation and approved the engagement of CBIZ CPAs P.C. on February 21, 2025.
• Marcum's reports on the company's financial statements for the fiscal year ended April 30, 2024, did not contain any adverse opinions or disclaimers.
• During the fiscal year ended April 30, 2024, and the interim period through February 21, 2025, there were no disagreements with Marcum regarding accounting principles or practices.
• The company disclosed material weaknesses related to insufficient segregation of duties of the Chief Financial Officer and insufficient management review controls in their Form 10-K for the fiscal year ended April 30, 2024.
• PharmaCyte Biotech did not consult with CBIZ CPAs P.C. on accounting principles or audit opinions during the two most recent fiscal years and the interim period through February 21, 2025.

Sentiment

Score: 6

Explanation: The announcement is neutral. It primarily involves a change in accounting firms due to an acquisition. The previously disclosed material weaknesses are a concern, but the prompt engagement of a new firm is a positive.

Positives

• Marcum's audit reports for the fiscal year ended April 30, 2024, were unqualified, indicating no major issues with the financial statements.
• The company promptly engaged a new accounting firm, CBIZ CPAs P.C., following Marcum's resignation.

Negatives

• The company previously disclosed material weaknesses related to insufficient segregation of duties of the Chief Financial Officer and insufficient management review controls.

Risks

• The previously disclosed material weaknesses in internal controls could pose a risk to the accuracy and reliability of the company's financial reporting.
• The transition to a new accounting firm could present challenges in ensuring a smooth and efficient audit process.

Industry Context

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

Stakeholder Impact

• Shareholders should be aware of the change in accounting firms and the previously disclosed material weaknesses in internal controls.
• The company's management will need to ensure a smooth transition to the new accounting firm and address the identified material weaknesses.

Key Dates