8-K: Precipio Inc. Changes Accounting Firms Following Acquisition

Precipio Inc. announces the resignation of Marcum LLP as its independent registered public accounting firm due to its acquisition by CBIZ CPAs P.C., and the subsequent engagement of CBIZ as the new auditor.

Summary

• Precipio Inc. announced that Marcum LLP resigned as their independent registered public accounting firm on April 9, 2025, due to CBIZ CPAs P.C.'s acquisition of Marcum's attest business on November 1, 2024.
• The audit report from Marcum for the fiscal years ended December 31, 2024 and 2023, did not contain any adverse opinions, disclaimers, qualifications, or modifications.
• There were no disagreements or reportable events between Precipio and Marcum during the relevant periods.
• On April 9, 2025, the Audit Committee of Precipio's Board of Directors engaged CBIZ as the new independent registered public accounting firm.
• Precipio did not consult with CBIZ regarding accounting principles or audit opinions during the fiscal years ended December 31, 2024 and 2023, and the subsequent period through April 10, 2025.

Sentiment

Score: 7

Explanation: The announcement is neutral to slightly positive. The change in auditors is a procedural matter, and the absence of disagreements or adverse opinions suggests a smooth transition.

Positives

• The transition of accounting firms appears to be smooth, with no reported disagreements or reportable events.
• Marcum's audit reports for the past two fiscal years did not contain any adverse opinions or disclaimers, suggesting a clean audit history.

Risks

• The change in accounting firms could potentially lead to increased scrutiny or adjustments in accounting practices, although this is not explicitly stated or implied in the document.

Future Outlook

The document does not contain any specific forward-looking statements or guidance regarding financial performance or future operations.

Management Comments

• Ilan Danieli, Chief Executive Officer, signed the report on behalf of Precipio, Inc.

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 process of changing auditors and disclosing the reasons for the change is standard practice and aligns with SEC regulations.
• Companies like General Electric, which switched from KPMG to Deloitte, and Tesla, which replaced PricewaterhouseCoopers with Ernst & Young, have also undergone auditor changes, demonstrating that this is a normal part of corporate governance.

Stakeholder Impact

• Shareholders are informed about the change in the company's independent auditor.
• The change is not expected to have a significant impact on employees or customers.

Key Dates

Keywords

accounting firm, auditor, CBIZ, Marcum, Precipio, resignation, engagement, audit