8-K: Presidio Property Trust Appoints Baker Tilly as New Auditor Following Moss Adams Merger

Presidio Property Trust, Inc. announced the appointment of Baker Tilly US, LLP as its new independent registered public accounting firm, succeeding Moss Adams LLP due to a merger, with no reported disagreements or issues.

Summary

• Presidio Property Trust, Inc. (the "Company") was notified on June 3, 2025, that Moss Adams LLP ("Moss Adams"), its independent registered public accounting firm, merged with Baker Tilly US, LLP ("Baker Tilly").
• Effective June 3, 2025, the combined audit practices now operate as Baker Tilly US, LLP.
• In connection with the merger, Moss Adams resigned as the Company's auditors, and the Audit Committee of the Company's Board of Directors approved the appointment of Baker Tilly as the successor.
• The audit report issued by Moss Adams for the year ended December 31, 2024, did not contain an adverse opinion, a disclaimer of opinion, nor was it qualified or modified as to uncertainty, audit scope, or accounting principles.
• During the year ended December 31, 2024, and the subsequent interim period through June 3, 2025, there were no disagreements with Moss Adams on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.
• No reportable events requiring disclosure pursuant to Item 304(a)(1)(v) of Regulation S-K occurred during the aforementioned period.
• Neither the Company nor anyone on its behalf consulted with Baker Tilly regarding the application of accounting principles or the type of audit opinion prior to this report, nor any disagreements or reportable events.
• Moss Adams confirmed its agreement with the statements made in the Current Report on Form 8-K in a letter to the SEC dated June 5, 2025.

Sentiment

Score: 7

Explanation: The sentiment is positive as the change in auditor was due to a merger of the accounting firm, not due to any issues with the company's financial statements or disagreements, indicating a smooth and compliant transition.

Positives

• The transition of the independent registered public accounting firm was due to a merger of the accounting firms, not due to any performance issues or disagreements with the Company.
• Moss Adams' audit report for the year ended December 31, 2024, was clean, containing no adverse opinions, disclaimers, or qualifications.
• There were no disagreements on accounting principles, financial statement disclosure, or auditing scope/procedure with Moss Adams during the relevant periods.
• No reportable events requiring disclosure were identified, indicating a smooth and compliant change in auditors.

Risks

• While the transition was smooth and without reported issues, any change in a certifying accountant inherently carries a minor, albeit mitigated in this case, risk of disruption or new interpretations of accounting practices.

Future Outlook

The document does not provide any forward-looking statements or guidance regarding the Company's future financial performance or strategic outlook.

Management Comments

• The Company provided Moss Adams with a copy of this Current Report on Form 8-K prior to its filing with the Securities and Exchange Commission (the Commission) and requested that Moss Adams furnish the Company with a letter addressed to the Commission stating whether it agrees with the above statements and, if it does not agree, the respects in which it does not agree.

Industry Context

The merger of Moss Adams LLP with Baker Tilly US, LLP reflects an ongoing trend of consolidation within the accounting and professional services industry, where firms seek to expand their capabilities and market reach. For publicly traded companies like Presidio Property Trust, such mergers necessitate formal auditor changes, which are standard procedures under SEC regulations.

Comparison to Industry Standards

• The process followed by Presidio Property Trust, including the formal notification, Audit Committee approval, and obtaining a letter from the resigning auditor confirming no disagreements, aligns with standard corporate governance practices and SEC requirements (e.g., Item 304(a) of Regulation S-K) for changes in certifying accountants.
• This indicates a compliant and transparent transition, typical of well-governed public companies, and does not suggest any deviation from industry best practices for auditor changes.

Corporate Governance

Stakeholder Impact

• Shareholders: Benefit from continued independent oversight of financial statements, ensuring transparency and reliability of financial reporting.
• Regulatory Authorities: The company's compliance with SEC regulations regarding auditor changes reinforces trust and adherence to reporting standards.

Next Steps

• Baker Tilly US, LLP will serve as the Company's independent registered public accounting firm for future audits.

Key Dates

Recommendation

Keywords

Presidio Property Trust, SQFT, auditor change, independent registered public accounting firm, Moss Adams, Baker Tilly, SEC filing, 8-K, corporate governance, financial reporting, audit committee