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Arena Group Holdings, Inc. (NYSE American:AREN) announced Monday that its Audit Committee and Board of Directors approved the dismissal of KPMG LLP as the company’s independent registered public accounting firm, effective July 11. The company also appointed BDO USA, P.C. as its new independent registered public accounting firm, effective immediately.
According to the company’s statement based on a filing with the U.S. Securities and Exchange Commission, KPMG’s audit report on Arena Group Holdings’ consolidated financial statements for the fiscal year ended December 31, 2024, did not contain an adverse opinion or disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope, or accounting principles. The report included an explanatory paragraph expressing substantial doubt about the company’s ability to continue as a going concern.
During the fiscal year ended December 31, 2024, and through July 11, 2025, Arena Group Holdings reported there were no disagreements with KPMG on accounting principles, financial statement disclosures, or auditing procedures that would have required disclosure. The company did, however, report material weaknesses in its internal control over financial reporting as of December 31, 2024. These weaknesses included incomplete documentation of finance and accounting policies and insufficient internal controls to validate data from certain third-party service providers. Despite these challenges, the company generated revenue of $128.78 million in the last twelve months, though InvestingPro data indicates analysts don’t expect profitability this year. The Audit Committee discussed these matters with KPMG, and the company has authorized KPMG to respond fully to inquiries from BDO.
Arena Group Holdings stated that it did not consult with BDO USA regarding the application of accounting principles or the type of audit opinion to be issued prior to BDO’s appointment. There were also no reportable events or disagreements involving BDO before its engagement.
A letter from KPMG addressed to the SEC, confirming its agreement with the disclosures, has been attached as an exhibit to the company’s filing.
This information is based on a press release statement included in Arena Group Holdings’ recent SEC filing.
In other recent news, The Arena Group Holdings, Inc. reported significant developments that are likely to impact its financial standing and investor relations. The company has been added to the Russell 2000 Index, effective June 30, 2025, which also includes it in the broader Russell 3000 Index. This inclusion is based on market capitalization rankings and is expected to enhance Arena’s visibility among investors. Furthermore, The Arena Group has regained compliance with the NYSE American’s continued listing standards, having met the requirements ahead of the April 2026 deadline. This achievement follows three consecutive profitable quarters for the first time in the company’s history, as noted by CEO Paul Edmondson.
Additionally, The Arena Group announced a confidential settlement with Authentic Brands Group, LLC, Sportority, Inc., and Manoj Bhargava, which will remove approximately $93.9 million in accrued liabilities from its balance sheet. This adjustment is anticipated to positively impact the company’s financial results for the second quarter of 2025. Alongside these financial improvements, the company has made changes in its leadership, with the resignation of four board members and the appointment of Lynn Petersmarck to the board. These developments are part of Arena’s strategy to strengthen its financial health and support its strategic growth.
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