8-K: Tel-Instrument Electronics Corp. Announces Change in Independent Registered Public Accounting Firm

Tel-Instrument Electronics Corp. reports Marcum LLP's resignation as their independent auditor due to an acquisition, and the engagement of CBIZ CPAs P.C. as the new auditor.

Summary

• Tel-Instrument Electronics Corp. (the Company) announced that Marcum LLP resigned as their independent registered public accounting firm on April 29, 2025.
• This resignation was due to CBIZ CPAs P.C. acquiring Marcum's attest business on November 1, 2024.
• With the approval of the Audit Committee, the Company engaged CBIZ CPAs P.C. as their new independent registered public accounting firm.
• Marcum's reports for the fiscal years ended March 31, 2024 and March 31, 2023 did not contain any adverse opinions, disclaimers, qualifications, or modifications regarding audit scope or accounting principles.
• There were no disagreements with Marcum on accounting principles, practices, financial statement disclosure, or auditing scope or procedure during the two most recent fiscal years and the subsequent interim period.
• The company disclosed a material weakness in internal control related to inventory valuation estimates in their Form 10-K for the fiscal year ended March 31, 2024.
• Tel-Instrument Electronics Corp. has provided Marcum with a copy of the disclosures prior to filing with the SEC.
• The company did not consult with CBIZ CPAs P.C. regarding the application of accounting principles or the type of audit opinion that might be rendered.
• Marcum LLP has provided a letter to the SEC, dated April 29, 2025, concurring with the statements made by Tel-Instrument Electronics Corp. regarding their dismissal as the company's independent auditor.

Sentiment

Score: 7

Explanation: The announcement is neutral, detailing a change in auditors due to an acquisition. The company appears to be handling the transition smoothly.

Positives

• The transition to a new auditor appears to be smooth, with no reported disagreements or issues with the previous auditor, Marcum LLP.
• Marcum LLP concurred with the statements made by Tel-Instrument Electronics Corp. regarding their dismissal.

Risks

• The company previously identified material weaknesses in internal control related to the proper design and implementation of controls over the company's estimates relating to the valuation of inventory.

Industry Context

Changes in auditing firms are relatively common, especially due to mergers and acquisitions within the accounting industry. Companies are required to disclose such changes to maintain transparency with investors.

Stakeholder Impact

• Shareholders should be aware of the change in auditing firms, but the transition appears to be well-managed.

Key Dates

Keywords

auditor, CBIZ CPAs P.C., Marcum LLP, accounting firm, resignation, engagement, financial statements, audit