8-K: Royale Energy Appoints BDO as New Auditor

Royale Energy, Inc. announced the appointment of BDO USA, P.C. as its new independent registered public accounting firm following the resignation of Horne LLP due to a merger.

Summary

• Horne LLP, Royale Energy's independent registered public accounting firm, resigned on October 31, 2025.
• This resignation occurred because Horne's partners and professional staff joined BDO USA, P.C. on November 1, 2025.
• On November 3, 2025, Royale Energy, through and with the approval of its Audit Committee, appointed BDO USA, P.C. as the new independent registered public accounting firm.
• Horne's reports on Royale Energy's financial statements for the fiscal years ended December 31, 2024, and 2023, did not contain any adverse opinion or disclaimer of opinion and were not qualified or modified.
• There were no disagreements between Royale Energy and Horne LLP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure during the relevant periods.
• Royale Energy did not consult with BDO USA, P.C. regarding the application of accounting principles or the type of audit opinion prior to their engagement.

Sentiment

Score: 7

Explanation: The change in auditor is a routine event driven by the former auditor's merger, not by any issues with the company. The absence of disagreements or adverse opinions from the previous auditor is a positive sign, indicating a smooth transition and sound financial reporting practices.

Positives

• The transition of auditing services from Horne LLP to BDO USA, P.C. appears smooth, driven by Horne's merger into BDO, a well-regarded firm.
• Horne LLP's audit reports for fiscal years 2023 and 2024 contained no adverse opinions, disclaimers, or qualifications, indicating sound past financial reporting.
• There were no disagreements on accounting principles, financial statement disclosure, or auditing scope between Royale Energy and Horne LLP, suggesting a non-contentious relationship.
• The Audit Committee's approval of BDO's appointment demonstrates adherence to proper corporate governance procedures.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding future financial performance or operational plans.

Management Comments

• Horne LLP stated in its letter to the SEC: "We agree with the statements made in response to that Item insofar as they relate to our Firm."

Industry Context

Changes in independent registered public accounting firms are common in the industry, often occurring due to mergers or acquisitions of accounting firms, or routine re-evaluations by companies. The transition from Horne LLP to BDO USA, P.C. for Royale Energy appears to be a direct result of Horne's integration into BDO, a large and well-established accounting firm, suggesting a standard industry event rather than a company-specific issue.

Corporate Governance

Stakeholder Impact

• Shareholders: Assurance of continued independent oversight of financial statements by a reputable firm.
• Regulatory bodies: Compliance with SEC reporting requirements regarding auditor changes.

Next Steps

• BDO USA, P.C. will now serve as Royale Energy, Inc.'s independent registered public accounting firm for future audits.

Key Dates

Keywords

Royale Energy, BDO USA, Horne LLP, Auditor Change, SEC Filing, 8-K, Independent Accountant, Financial Reporting, Corporate Governance