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Connexa Sports Technologies Inc. (NASDAQ:YYAI), a Delaware-based company with a market capitalization of $13.15 million, has announced a change in its independent registered public accounting firm. The company’s stock has shown significant volatility, recently posting a 20% gain over the past week despite a challenging 74% decline over the last six months. On Monday, the company’s Board of Directors and audit committee approved the engagement of Enrome LLP as the new auditor for the fiscal year ending April 30, 2025, replacing the previous firm, Bush & Associates CPA (B&A).
The transition from B&A to Enrome was prompted by logistical challenges in effective communication, as B&A is located in Henderson, Nevada, while Connexa Sports’ management operates from Hong Kong. Despite the change, there have been no reported disagreements with B&A on any matters of accounting principles, practices, financial statement disclosure, or auditing scope or procedure that would have warranted mention in their reports.
The company’s most recent quarterly report on Form 10-Q was filed on the same day the decision to engage Enrome was made. This report followed the audits of Connexa’s consolidated financial statements for the fiscal years ended April 30, 2023, and 2024, which were conducted by a different firm, Olayinka Oyebola & Co.
B&A has agreed with Connexa Sports’ statements regarding the change and has provided a letter to the Securities and Exchange Commission confirming their agreement. This letter is included as Exhibit 16.1 in the Form 8-K filing.
This strategic move by Connexa Sports Technologies is part of the company’s ongoing efforts to streamline operations and enhance corporate governance. According to InvestingPro data, the company currently maintains a WEAK overall financial health score of 1.37, suggesting potential challenges ahead. The information regarding these changes is based on the company’s recent SEC filing.
In other recent news, Connexa Sports Technologies Inc. has formalized executive employment agreements with its senior leadership. Thomas Tarala has been confirmed as the Chief Executive Officer, while Guibao Ji takes the role of Chief Financial Officer, positions they have held since November 2024. Tarala, who also serves as the company secretary, brings 30 years of international corporate finance experience. His compensation package includes a base salary of $720,000, a $300,000 signing bonus in common stock, and a $1,000,000 bonus related to Connexa’s merger and Nasdaq listing, which is still pending payment. Tarala is also eligible for an annual bonus equivalent to his base salary and special bonuses in the event of a Change of Control. Ji, with 25 years of experience, will receive a $250,000 annual salary and a discretionary performance-based bonus. These developments highlight Connexa’s strategic emphasis on experienced leadership to drive growth in the competitive sports technology sector.
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