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AltEnergy Acquisition Corp (OTC Pink: AEAEU), a motor vehicle parts and accessories manufacturer with a market capitalization of $76 million, has announced a change in its independent registered accounting firm. According to InvestingPro data, the company’s overall financial health score is rated as WEAK, with several concerning metrics that align with recent developments. On Monday, the company was informed by Marcum LLP that they resigned as the auditor. Subsequently, on Tuesday, the Audit Committee of the company’s Board of Directors approved the engagement of CBIZ (NYSE:CBZ) CPAs P.C. as the new auditor, effective immediately for the fiscal year ending December 31, 2025.
This transition follows CBIZ’s acquisition of Marcum’s attest business on November 1, 2024. Marcum’s reports on AltEnergy’s financial statements for the fiscal years ending December 31, 2024, and December 31, 2023, included a "going concern" qualification. Financial metrics support these concerns, with the company reporting a negative EPS of -$0.4 and a concerning current ratio of 0.02, indicating significant liquidity challenges. InvestingPro analysis reveals that short-term obligations exceed liquid assets, a critical factor in the going concern assessment. This was based on the uncertainty surrounding the company’s ability to complete an initial business combination by the deadline stated in its Certificate of Incorporation, which would otherwise require mandatory liquidation.
During the tenure of Marcum, there were no disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedures that would have warranted a mention in their reports. However, the company did report material weaknesses in its internal control over financial reporting. These weaknesses pertained to accounting for complex financial instruments and the accuracy of warrant liabilities, leading to the restatement of financial statements for the years ended December 31, 2022, and the quarterly periods ended June 30, 2023, and September 30, 2023.
Additionally, a material weakness related to the accounting of contractual liabilities was identified, which affected the accounting of consulting fees and led to the restatement of quarterly financial statements for March 31, June 30, and September 30, 2023.
The Audit Committee has discussed these issues with Marcum, and Marcum has agreed to cooperate with CBIZ in their inquiries regarding these matters. AltEnergy has provided Marcum with the content of this announcement, and Marcum has furnished a letter to the SEC, dated April 15, 2025, agreeing with the statements made by the company in response to the regulatory requirements.
The company’s shares are traded on the OTC Pink Open Market under the symbols AEAE for Class A common stock and AEAEW for warrants. The stock currently trades at a P/E ratio of -29.25, reflecting the company’s unprofitable status over the last twelve months. This announcement is based on a press release statement filed with the U.S. Securities and Exchange Commission. For detailed financial analysis and additional insights, investors can access more than 30 key metrics and exclusive ProTips through InvestingPro.
In other recent news, AltEnergy Acquisition Corp has announced multiple extensions for completing its initial business combination. The Delaware-based special purpose acquisition company has now extended the deadline to May 2, 2025, marking the sixth such extension. This decision follows a series of monthly postponements that began after stockholders approved an amendment to extend the original deadline from May 2, 2024, to November 2, 2024. AltEnergy has been utilizing provisions that allow the board to delay the date up to six times, each by an additional month. The company’s securities, including Class A common stock and warrants, continue to be traded on the OTC Pink Open Market. These extensions provide AltEnergy with additional time to finalize a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination. The company has indicated that if they are unable to achieve a business combination by the new deadline, they may cease operations except for the purpose of winding up. Such developments are critical for special purpose acquisition companies like AltEnergy, as they define the company’s future trajectory and potential value to investors.
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