ScanTech AI appoints Berkowitz Pollack Brant as new auditor

ATLANTA - ScanTech AI Systems Inc. (NASDAQ:STAI), a microcap technology company with a market value of approximately $36 million, has appointed Berkowitz Pollack Brant Advisors + CPAs (BPB) as its independent registered public accounting firm for the fiscal year ending December 31, 2025, and certain interim periods, the company announced Wednesday.

The AI-powered security screening technology developer said the appointment is part of its strategy to strengthen financial reporting and enhance internal controls as it works toward Nasdaq re-compliance. According to InvestingPro data, the company faces significant financial challenges with a current ratio of 0.14, indicating potential liquidity concerns.

"We welcome Berkowitz Pollack Brant as our new independent auditor and look forward to their guidance as we continue to work to elevate our reporting standards," said Dolan Falconer, Chief Executive Officer of ScanTech AI.

The auditor appointment follows ScanTech AI’s recent announcement of a purchase agreement with ARC Group International Ltd., under which ARC committed to provide up to $50 million of capital via an Equity Line of Credit once shares for the ELOC are registered with the Securities and Exchange Commission. The funding could provide crucial support for the company, which currently carries $23.27 million in total debt. InvestingPro analysis reveals 11 additional key financial indicators that could impact the company’s outlook.

ScanTech AI plans to file a registration statement with the SEC to register the resale of securities issuable under the ELOC. The company cannot draw funds under the agreement until the shares are registered.

The company develops non-intrusive fixed-gantry CT screening technologies that utilize artificial intelligence to detect hazardous materials and contraband for use in security-sensitive facilities. In the last twelve months, ScanTech generated revenue of $1.25 million, representing a 139% year-over-year growth rate.

This information is based on a press release statement from ScanTech AI Systems.

In other recent news, ScanTech AI Systems Inc. has secured an equity line of credit of up to $50 million from ARC Group International Ltd., with an initial $500,000 PIPE equity investment contingent upon SEC registration. The company has also announced the appointment of Berkowitz Pollack Brant Advisors + CPAs as its new independent registered public accounting firm, effective for the fiscal year ending December 31, 2025. This follows the resignation of its previous auditor, UHY LLP, which cited incomplete review of financial statements for the period ended June 30, 2025, as the reason for their departure.

In an effort to regain compliance with Nasdaq listing requirements, ScanTech AI has filed its Quarterly Report on Form 10-Q for the period ended June 30, 2025. The company has engaged FSR Capital for advisory services related to capital markets and compliance issues, including bid price deficiencies and filing delays. These developments highlight ScanTech AI’s ongoing efforts to address regulatory challenges and secure financial stability.

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