8-K: Sachem Capital Corp. Appoints Baker Tilly as New Independent Auditor, Replacing Hoberman & Lesser CPAs

Sachem Capital Corp. has replaced its independent auditor, Hoberman & Lesser CPAs, with Baker Tilly US, LLP, effective November 18, 2024.

Summary

• Sachem Capital Corp. has terminated its engagement with Hoberman & Lesser CPAs as its independent registered public accounting firm.
• Baker Tilly US, LLP has been engaged as the new independent registered public accounting firm, effective November 18, 2024.
• The Audit Committee of Sachem Capital's Board of Directors oversaw the selection process and approved the engagement of Baker Tilly.
• Hoberman's audit reports for the years ended December 31, 2022 and 2023 did not contain any adverse opinions, disclaimers, or qualifications.
• There were no disagreements between Sachem Capital and Hoberman regarding accounting principles, practices, financial statement disclosure, or auditing scope during the audits of 2022 and 2023 and reviews through November 14, 2024.
• Sachem Capital did not consult with Baker Tilly on any accounting or auditing matters prior to their engagement.

Sentiment

Score: 7

Explanation: The document reflects a routine change in auditors with no indication of any underlying issues. The transition appears to be well-managed and transparent, which is a positive sign.

Positives

• The transition to a new auditor was managed by the Audit Committee of the Board of Directors.
• The previous auditor, Hoberman & Lesser CPAs, had no disagreements with the company on accounting or auditing matters.
• The audit reports from the previous auditor were unqualified.

Risks

• The change in auditors could potentially introduce a period of adjustment and learning for the new firm.
• Any unforeseen issues arising during the transition could impact the company's financial reporting process.

Management Comments

• The Audit Committee directed the process of review of candidate firms to replace Hoberman and approved the decision to engage Baker Tilly.

Industry Context

Changes in auditors are a normal part of corporate governance, and this change does not appear to be related to any specific industry trend or competitive pressure.

Comparison to Industry Standards

• The process of changing auditors is a standard practice for public companies, and Sachem Capital's approach of having the Audit Committee oversee the process is consistent with best practices.
• The lack of disagreements with the previous auditor is a positive sign, as it indicates a healthy relationship and no underlying issues with accounting practices.
• The engagement of Baker Tilly, a well-known accounting firm, is a common choice for companies of this size and complexity.

Stakeholder Impact

• Shareholders may view the change in auditors as a routine matter, with no significant impact on the company's operations or financial reporting.
• Employees may experience a transition period as they work with the new auditing firm.
• Creditors and other stakeholders will likely monitor the company's financial reporting process under the new auditor.

Key Dates

Keywords

auditor, accounting, Baker Tilly, Hoberman & Lesser, financial statements, audit, Sachem Capital Corp