Lineage Cell Therapeutics Changes Accountants Amidst Disagreement

TL;DR

Lineage Cell Therapeutics swapped auditors (PwC out, BDO in) due to a disagreement over R&D expense accounting.

AI Summary

Lineage Cell Therapeutics, Inc. announced on June 11, 2024, a change in its principal accounting firm, with PricewaterhouseCoopers LLP resigning and BDO USA, LLP being appointed as the new independent registered public accounting firm. This change follows a disagreement regarding the accounting treatment of certain research and development expenses.

Why It Matters

A change in auditors, especially one involving a disagreement, can signal potential accounting issues or a shift in financial reporting strategy, which investors should monitor closely.

Risk Assessment

Risk Level: medium — A disagreement with a former auditor can sometimes indicate underlying accounting complexities or potential restatements, warranting closer investor scrutiny.

Key Players & Entities

• Lineage Cell Therapeutics, Inc. (company) — Registrant
• PricewaterhouseCoopers LLP (company) — Resigning independent registered public accounting firm
• BDO USA, LLP (company) — Appointed independent registered public accounting firm
• June 11, 2024 (date) — Date of earliest event reported

FAQ

Filing Documents

• lctx-20240614.htm (8-K) — 42KB
• lctx-ex16_1.htm (EX-16.1) — 5KB
• 0000950170-24-073769.txt ( ) — 157KB
• lctx-20240614.xsd (EX-101.SCH) — 23KB
• lctx-20240614_htm.xml (XML) — 4KB

01 Changes in Registrant's Certifying Accountant

Item 4.01 Changes in Registrant's Certifying Accountant. (a) Previous Independent Registered Public Accounting Firm On June 11, 2024, the Audit Committee of the Board of Directors of Lineage Cell Therapeutics, Inc. (the "Company") approved the dismissal of WithumSmith+Brown, PC ("Withum"), as the Company's independent registered public accounting firm, effective on that date. Withum audited the Company's consolidated financial statements for the years ended December 31, 2023 and 2022. Withum's report dated March 7, 2024, with respect to the consolidated financial statements of the Company as of December 31, 2023 and 2022 and for each of the years ended December 31, 2023 and 2022, did not contain an adverse opinion or a disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope, or accounting principles. During the two years ended December 31, 2023, and from December 31, 2023 through June 11, 2024, there were no (i) disagreements (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions to Item 304 of Regulation S-K) between the Company and Withum on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Withum, would have caused Withum to make reference to the subject matter of such disagreements in connection with its report, or (ii) "reportable events," as described in Item 304(a)(1)(v) of Regulation S-K, that would require disclosure under Item 304(a)(1)(v) of Regulation S-K. The Company furnished Withum with a copy of the disclosure in this Item 4.01 and requested that Withum furnish the Company with a letter addressed to the U.S. Securities and Exchange Commission stating whether Withum agrees with the statements made by the Company in this Item 4.01, and if not, stating the respects in which it does not agree. Withum furnished such a letter, a copy of which is filed as Exhibit 16.1 to th

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 16.1 Letter from WithumSmith+Brown, PC dated June 11, 2024 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. Lineage Cell Therapeutics, Inc. Date: June 14, 2024 By: /s/ George A. Samuel III Name: Title: George A. Samuel III General Counsel and Corporate Secretary

View Full Filing

View this 8-K filing on SEC EDGAR