8-K: Quoin Pharmaceuticals Changes Independent Auditor from Marcum LLP to CBIZ CPAs

Quoin Pharmaceuticals has replaced its independent registered public accounting firm from Marcum LLP to CBIZ CPAs, effective immediately on March 18, 2025.

Summary

• Quoin Pharmaceuticals Ltd. has changed its independent registered public accounting firm.
• Marcum LLP resigned as the company's auditor on March 18, 2025.
• CBIZ CPAs was engaged as the new independent registered public accounting firm, effective immediately on the same date.
• The Audit Committee of the Company's Board of Directors approved the engagement of CBIZ CPAs.
• Marcum's reports on the company's financial statements for the fiscal years ended December 31, 2024 and 2023 did not contain any adverse opinions or disclaimers.
• There were no disagreements between the Company and Marcum on any matter of accounting principles or practices during the two most recent fiscal years and the subsequent interim period.
• There were no reportable events as defined in Item 304(a)(1)(v) of Regulation S-K during the same period.
• The company did not consult with CBIZ CPAs on accounting principles or audit opinions prior to their engagement.

Sentiment

Score: 7

Explanation: The announcement is neutral to slightly positive. The auditor change appears to be a routine matter with no apparent issues or disagreements. This suggests a stable financial reporting environment.

Positives

• The transition to a new auditor appears to be smooth, with no reported disagreements or issues with the previous auditor, Marcum LLP.
• Marcum LLP's letter confirms their agreement with the statements made by Quoin Pharmaceuticals regarding their resignation.

Industry Context

Changes in auditors are not uncommon, but it's important to ensure a smooth transition and maintain investor confidence in the company's financial reporting. The fact that there were no disagreements or reportable events suggests a clean transition.

Comparison to Industry Standards

• Auditor changes are a normal part of corporate governance.
• Companies like Teva Pharmaceutical Industries Ltd and Mylan N.V. (now Viatris) have also changed auditors in the past.
• The key is that the transition is seamless and doesn't raise any red flags about the company's financial health or reporting practices.

Stakeholder Impact

• Shareholders should be aware of the change in auditor, but the lack of reported issues suggests minimal impact.
• The company's employees in the finance and accounting departments will work with the new auditor, CBIZ CPAs.

Key Dates

Keywords

independent auditor, CBIZ CPAs, Marcum LLP, accounting firm, audit, financial statements, Quoin Pharmaceuticals