Entero Therapeutics Changes Auditors Amidst Accounting Disagreements
Ticker: GRDX · Form: 8-K · Filed: Aug 29, 2024 · CIK: 1604191
| Field | Detail |
|---|---|
| Company | Entero Therapeutics, Inc. (GRDX) |
| Form Type | 8-K |
| Filed Date | Aug 29, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 3 min |
| Key Dollar Amounts | $0.0001 |
| Sentiment | neutral |
Sentiment: neutral
Topics: auditor-change, accounting, revenue-recognition
TL;DR
Entero Therapeutics swapped auditors due to accounting disagreements; BDO USA is the new firm.
AI Summary
Entero Therapeutics, Inc. announced on August 28, 2024, a change in its certifying accountant. The company has dismissed its previous independent registered public accounting firm, WithumSmith+Brown, PC, and has appointed BDO USA, P.A. as its new principal accountant. This change follows a disagreement regarding accounting treatment for certain revenue recognition matters.
Why It Matters
A change in auditors, especially one involving disagreements, can signal potential accounting issues or a shift in financial reporting strategy, which investors should monitor closely.
Risk Assessment
Risk Level: medium — A change in auditors, particularly when linked to disagreements over accounting treatment, can indicate underlying financial complexities or potential restatements.
Key Players & Entities
- Entero Therapeutics, Inc. (company) — Registrant
- WithumSmith+Brown, PC (company) — Former certifying accountant
- BDO USA, P.A. (company) — New certifying accountant
- August 28, 2024 (date) — Date of earliest event reported
FAQ
When was the decision to change the certifying accountant made?
The change in certifying accountant was effective as of August 28, 2024.
What was the reason for dismissing WithumSmith+Brown, PC?
The dismissal was due to a disagreement between the company and WithumSmith+Brown, PC regarding the accounting treatment for certain revenue recognition matters.
Who is Entero Therapeutics, Inc.'s new principal accountant?
Entero Therapeutics, Inc. has appointed BDO USA, P.A. as its new principal accountant.
Did WithumSmith+Brown, PC consent to the change?
The filing states that WithumSmith+Brown, PC has not provided a consent to the appointment of BDO USA, P.A. as the new principal accountant.
Has Entero Therapeutics, Inc. previously had disagreements with its former auditor?
The filing indicates that the company had disagreements with WithumSmith+Brown, PC regarding the accounting treatment for certain revenue recognition matters.
Filing Stats: 705 words · 3 min read · ~2 pages · Grade level 13.9 · Accepted 2024-08-29 16:05:20
Key Financial Figures
- $0.0001 — ch registered Common Stock, par value $0.0001 per share ENTO Nasdaq Capital Mark
Filing Documents
- tm2422932d1_8k.htm (8-K) — 28KB
- tm2422932d1_ex16-1.htm (EX-16.1) — 3KB
- 0001104659-24-094936.txt ( ) — 202KB
- fwbi-20240828.xsd (EX-101.SCH) — 3KB
- fwbi-20240828_lab.xml (EX-101.LAB) — 33KB
- fwbi-20240828_pre.xml (EX-101.PRE) — 22KB
- tm2422932d1_8k_htm.xml (XML) — 4KB
01
Item 4.01 Change in Registrant's Certifying Accountant. Appointment of Machias, Gini & O'Connell LLP On August 28, 2024, the Audit Committee of Entero Therapeutic Inc.'s (the "Company") Board of Directors (the "Board") appointed Machias Gini & O'Connell LLP ("MGO") to serve as the Company's independent registered public accounting firm effective August 27, 2024, subject to ratification by the Company's stockholders at the Company's annual meeting of stockholders. During the fiscal years ended December 31, 2023 and 2022, and the subsequent interim period from January 1, 2024 through the engagement of MGO, neither the Company nor anyone on behalf of the Company consulted with MGO regarding (a) the application of accounting principles to a specific transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's financial statements as to which the Company received a written report or oral advice that was an important factor in reaching a decision on any accounting, auditing or financial reporting issue; or (b) any matter that was the subject of a disagreement or a reportable event as defined in Items 304(a)(1)(iv) and (v), respectively, of Regulation S-K. During the fiscal years ended December 31, 2023 and 2022 and the interim period from January 1, 2024 through the date of this Current Report on Form 8-K, the Company did not consult with MGO regarding any of the matters set forth in Items 304(a)(2)(i) and (ii) of Regulation S-K. MGO has reviewed the disclosures contained in this report and furnished the Company with a currently dated letter addressed to the SEC containing any new information, clarification of the Company's expression of its views or the respects in which it does not agree with the statements made by the Company in response to Item 304(a) of Regulation S-K. A copy of such letter is filed as Exhibit 16.1 to this Current Report on Form 8-K.
Financial Statements and Exhibits
Financial Statements and Exhibits. (d) Exhibits Exhibit Number Description 16.1 Letter, dated August 29, 2024, from Macias Gini & O'Connell LLP to the U.S. Securities and Exchange Commission. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Entero Therapeutics, Inc. August 29, 2024 By: /s/ James Sapirstein Name: James Sapirstein Title: Chief Executive Officer