8-K: RCM Technologies Appoints EisnerAmper LLP as New Independent Auditor Following WithumSmith+Brown Dismissal

RCM Technologies, Inc. has dismissed WithumSmith+Brown, PC and engaged EisnerAmper LLP as its new independent registered public accounting firm, effective June 30, 2025.

Summary

• RCM Technologies, Inc. (RCMT) dismissed WithumSmith+Brown, PC (Withum) as its independent registered public accounting firm on June 30, 2025.
• The Company engaged EisnerAmper LLP (Eisner) as its new independent registered public accounting firm, effective the same date.
• Eisner is appointed to audit the Company's financial statements and the effectiveness of internal control over financial reporting for the fiscal year ending January 3, 2026, and to review quarterly financial statements for that fiscal year.
• Withum's audit reports on the consolidated financial statements for the fiscal years ended December 28, 2024, and December 30, 2023, did not contain any adverse opinion, disclaimer of opinion, or qualifications.
• There were no disagreements with Withum on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.
• A material weakness concerning separation of duties in SAP ERP and General Ledger and user access controls was communicated by Withum for the fiscal year ended December 30, 2023, but this weakness was fully remediated by December 28, 2024, and was not mentioned in Withum's audit report for the fiscal year ended December 28, 2024.
• The Company's Audit Committee approved the decision to change independent registered public accounting firms.
• The Company had not consulted with Eisner regarding accounting principles or audit opinions during the two most recent fiscal years and through June 30, 2025.

Sentiment

Score: 7

Explanation: The change in auditor is a neutral event, but the positive aspect of the remediated material weakness and the lack of disagreements with the previous auditor contribute to a slightly positive sentiment, indicating good corporate hygiene and a controlled transition.

Positives

• Withum's audit reports for the fiscal years ended December 28, 2024, and December 30, 2023, were unqualified, indicating no significant issues with the financial statements during those periods.
• The previously identified material weakness in internal controls for the fiscal year ended December 30, 2023, related to IT general controls, was fully remediated by December 28, 2024, demonstrating effective corrective action.
• The decision to change accounting firms was approved by the Company's Audit Committee, indicating proper corporate governance oversight.

Negatives

• A material weakness was identified by the previous auditor for the fiscal year ended December 30, 2023, concerning separation of duties and user access controls within the SAP ERP and General Ledger, which affected related IT-dependent controls.

Risks

• While remediated, the past material weakness in internal controls over financial reporting related to IT general controls (separation of duties and user access controls) for the fiscal year ended December 30, 2023, highlights a historical control deficiency that required significant attention.

Future Outlook

EisnerAmper LLP is engaged to audit the Company's financial statements and internal control over financial reporting for the fiscal year ending January 3, 2026, and to review quarterly financial statements for that fiscal year.

Management Comments

• The Company's Audit Committee approved the decision to change independent registered public accounting firms.
• The material weakness concerning separation of duties and user access controls was fully remediated at December 28, 2024.

Industry Context

Changes in independent registered public accounting firms are a routine part of corporate governance, often driven by factors such as cost, service quality, or a desire for fresh perspectives. The disclosure of a remediated material weakness in internal controls, while a past issue, underscores the ongoing importance of robust financial reporting infrastructure, a common focus across industries.

Corporate Governance

Stakeholder Impact

• Shareholders: Provides transparency regarding the change in the independent auditor, which is crucial for maintaining confidence in the company's financial reporting integrity. The remediation of a prior material weakness is a positive signal regarding internal controls.
• Regulatory Authorities: Demonstrates compliance with SEC regulations regarding auditor changes and disclosures, including the absence of reportable disagreements and the remediation of identified material weaknesses.

Next Steps

• EisnerAmper LLP will audit RCM Technologies' financial statements and internal control over financial reporting for the fiscal year ending January 3, 2026.
• EisnerAmper LLP will review RCM Technologies' financial statements for the fiscal quarters of the fiscal year ending January 3, 2026.

Key Dates

Keywords

RCM Technologies, RCMT, SEC filing, 8-K, auditor change, independent registered public accounting firm, WithumSmith+Brown, EisnerAmper, corporate governance, financial reporting, internal controls, material weakness