8-K: Relmada Therapeutics Changes Accounting Firms Following Acquisition

Relmada Therapeutics dismisses Marcum LLP as its independent auditor due to its acquisition by CBIZ CPAs, and subsequently engages CBIZ CPAs as its new auditor.

Summary

• Relmada Therapeutics dismissed Marcum LLP as their independent registered public accounting firm on May 8, 2025, following CBIZ CPAs' acquisition of Marcum's attest business on November 1, 2024.
• The company's audit committee approved the dismissal of Marcum.
• Marcum's audit report for the fiscal years ended December 31, 2024 and 2023, did not contain an adverse opinion or disclaimer, but included an explanatory paragraph regarding concerns about the company's ability to continue as a going concern.
• There were no disagreements or reportable events between Relmada and Marcum during the relevant periods.
• On May 8, 2025, Relmada engaged CBIZ CPAs as its new independent registered public accounting firm for the fiscal year ending December 31, 2025, with the approval of the audit committee.
• Relmada did not consult with CBIZ CPAs on accounting principles or audit opinions prior to their engagement.

Sentiment

Score: 5

Explanation: Neutral sentiment as the announcement primarily concerns a change in accounting firms due to an acquisition. The 'going concern' note is a concern, but it's an existing issue, not a new development.

Negatives

• Marcum's audit report included an explanatory paragraph relating to substantial doubt about the company's ability to continue as a going concern.

Risks

• The change in accounting firms could potentially raise concerns among investors until CBIZ CPAs has completed its audit for the fiscal year ending December 31, 2025.
• The inclusion of an explanatory paragraph in Marcum's audit report regarding the company's ability to continue as a going concern could negatively impact investor confidence.

Future Outlook

The company will rely on CBIZ CPAs for its audit for the fiscal year ending December 31, 2025.

Industry Context

Changes in accounting firms are not uncommon, especially following mergers or acquisitions within the accounting industry. Companies often switch auditors to maintain independence or due to the acquiring firm's existing client relationships.

Comparison to Industry Standards

• It is common practice for companies to change auditors, especially after an acquisition of one firm by another.
• Companies like Teva Pharmaceuticals have also changed auditors in the past, often citing similar reasons such as mergers or the desire for a fresh perspective.
• The inclusion of a 'going concern' paragraph is a standard practice when auditors have doubts about a company's ability to continue operating, and this is not unique to Relmada.

Stakeholder Impact

• Shareholders may react to the change in auditors and the 'going concern' note in the previous auditor's report.
• The company's management will need to work closely with the new auditor to ensure a smooth transition.

Key Dates

Keywords

accounting firm, CBIZ CPAs, Marcum LLP, auditor, Relmada Therapeutics, audit committee