8-K: Stemtech Corporation Changes Independent Auditor, Appoints Bush & Associates CPA

Stemtech Corporation has replaced Turner Stone LLP with Bush & Associates CPA as its independent registered public accounting firm, effective August 15, 2024.

Summary

• Stemtech Corporation has changed its independent registered public accounting firm, replacing Turner Stone LLP with Bush & Associates CPA.
• The change was effective as of August 15th, 2024, with the decision made by the Board of Directors on August 14th, 2024.
• Turner Stone LLP's audit reports for the fiscal years ended December 31st, 2022 and 2023 did not contain any adverse opinions, disclaimers, or qualifications, except for explanatory paragraphs regarding the company's ability to continue as a going concern.
• There were no disagreements between Stemtech and Turner Stone LLP on accounting principles, financial statement disclosure, or auditing procedures during the years ended December 2022 and 2023 and subsequent interim periods through July 16th, 2024.
• Stemtech did not consult with Bush & Associates CPA on accounting principles or audit opinions prior to their appointment.
• Turner Stone LLP has confirmed their agreement with the statements made by Stemtech regarding the change of auditors.

Sentiment

Score: 5

Explanation: The document is neutral, detailing a change in auditors. The going concern issue from the previous auditor is a concern, but the change itself is not inherently positive or negative.

Positives

• The transition of auditors was smooth with no disagreements reported between Stemtech and the previous auditor, Turner Stone LLP.
• Turner Stone LLP confirmed their agreement with Stemtech's statements regarding the change of auditors.

Negatives

• The previous auditor's reports included explanatory paragraphs regarding the company's ability to continue as a going concern, which indicates financial uncertainty.

Risks

• The change in auditors could potentially lead to increased scrutiny of the company's financials.
• The going concern uncertainty noted in previous audit reports remains a risk factor for the company.

Management Comments

• The Board made the decision to engage the New Accounting Firm acting under authority delegated to it and the Board of Directors approved the same on August 14th, 2024.

Industry Context

Changes in auditors are not uncommon, but it is important to note that the previous auditor had raised concerns about the company's ability to continue as a going concern, which is a significant issue for investors.

Comparison to Industry Standards

• The change of auditors is a standard corporate procedure, but the lack of prior consultation with the new auditor is unusual.
• The going concern qualification in the previous auditor's reports is a common issue for companies with financial difficulties, and it is important to monitor how the new auditor assesses this risk.

Stakeholder Impact

• Shareholders should be aware of the change in auditors and the previous auditor's going concern qualification.
• The change in auditors may impact the perception of the company's financial health.

Key Dates

Keywords

auditor, accounting firm, independent auditor, financial statements, Turner Stone LLP, Bush & Associates CPA, audit, going concern