Safe Pro Group Inc. appoints new auditor

Safe Pro Group Inc. (NASDAQ:SPAI), a company operating in the orthopedic appliances and supplies industry, announced a change in its independent registered public accounting firm. On September 30, 2024, the company dismissed Salberg & Company, P.A. as its auditor, as confirmed by a recent 8-K filing with the Securities and Exchange Commission.

The dismissal, effective on the same date, was approved by both the Audit Committee and the Board of Directors. According to the filing, the reports from Salberg for the fiscal years ending December 31, 2022, and 2023, contained no adverse opinion or disclaimer and were not qualified or modified, except for an explanatory paragraph regarding the company's ability to continue as a going concern.

The company has appointed RBSM LLP as its new independent registered public accounting firm for the fiscal year ending December 31, 2024. Prior to this appointment, neither Safe Pro Group Inc. nor anyone on its behalf consulted with RBSM on any matters that required disclosure in the filing.

Throughout the periods covered by Salberg's audits and up to the date of the change, there were no disagreements between Safe Pro Group Inc. and Salberg on accounting principles or practices, financial statement disclosure, or auditing scope or procedure that would have required Salberg to reference such disagreements in their audit reports.

In other recent news, Safe Pro Group Inc. has secured a patent for its SpotlightAI™ technology, a significant development in autonomous explosives detection using artificial intelligence (AI) from drone images. The United States Patent and Trademark Office (USPTO) has approved all 21 claims, with the patent expected to expire in 2043.

Safe Pro Group has further filed for global patent protection with the World Intellectual Property Organization (WIPO), potentially extending these protections to 157 contracting states. SpotlightAI™ is currently deployed in Ukraine, aiding humanitarian mine action organizations, including a recent collaboration with the United Nations Development Programme (UNDP).

Simultaneously, Safe Pro Group's subsidiary, Airborne Response, has secured a one-year contract extension with Citizens Property Insurance Corporation. This marks the second consecutive year of the agreement, following the initial three-year contract that began in 2018.

Airborne Response will continue to supply aerial services to the Florida-based insurer, deploying uncrewed aircraft systems to conduct both routine and disaster response flights. These operations play a significant role in assessing roof structures and other points of interest for Citizens' business units, aiding in claim evaluations and responses to catastrophic events.

InvestingPro Insights

Safe Pro Group Inc.'s recent change in auditors comes at a time when the company is facing significant financial challenges. According to InvestingPro data, the company is not profitable over the last twelve months, with an operating income margin of -811.12% and a negative diluted EPS of -$0.87. These figures underscore the auditor's concerns about the company's ability to continue as a going concern.

InvestingPro Tips highlight that SPAI's stock has taken a big hit over the last week, falling 9.09%, and has fared poorly over the last month with a 42.6% decline. This poor stock performance aligns with the company's financial struggles and may reflect investor concerns about its future prospects.

The company's market capitalization stands at $35.57 million, while its revenue for the last twelve months was $1.39 million. This relatively high market cap to revenue ratio suggests that SPAI is trading at a high revenue valuation multiple, another InvestingPro Tip that investors should consider.

For readers interested in a deeper analysis, InvestingPro offers 12 additional tips for SPAI, providing a more comprehensive view of the company's financial health and market position.

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