Crown Electrokinetics announces resignation of independent auditor BPM LLP

Published 04/08/2025, 11:44
Crown Electrokinetics announces resignation of independent auditor BPM LLP

Crown Electrokinetics Corp. (OTC:CRKN) reported Monday that its independent registered public accounting firm, BPM LLP, has resigned effective immediately. The company’s board of directors was notified of the decision on August 1.

BPM LLP had served as the company’s auditor since 2024. According to a statement from Crown Electrokinetics, BPM’s resignation did not result from any identified violations of law or fraud during its audit procedures. The audit firm’s report on the company’s consolidated financial statements for the fiscal year ended December 31, 2024, did not contain any adverse opinion, disclaimer of opinion, or modifications related to uncertainty, audit scope, or accounting principles.

Crown Electrokinetics stated that there were no disagreements between the company and BPM regarding accounting principles, practices, financial statement disclosure, or auditing scope or procedures during the fiscal year ended December 31, 2024, or in subsequent interim periods prior to the resignation. The company noted there were no reportable events as defined by SEC regulations, except for material weaknesses previously disclosed in its Annual Report on Form 10-K for 2024. According to InvestingPro data, the company maintains a current ratio of 5.11, indicating sufficient liquid assets to meet short-term obligations, despite an overall weak financial health score.

The company and its board indicated they are seeking to engage a new independent registered public accounting firm as soon as practicable but did not provide a timeline for when a successor would be appointed. Crown Electrokinetics said it expects to authorize BPM to respond fully to inquiries from the new auditor once engaged. With the company’s next earnings report due on August 12, InvestingPro subscribers can access detailed financial analysis and 17 additional key insights about the company’s performance and outlook.

The information in this article is based on a press release statement included in the company’s Form 8-K filing with the Securities and Exchange Commission.

In other recent news, Crown Electrokinetics Corp. has announced a significant merger agreement with Crown EK Acquisition LLC and its subsidiary, Crown EK Merger Sub Corp. The agreement outlines a tender offer to acquire all outstanding shares of Crown’s common stock at $3.15 per share. This tender offer is set to commence within the next 15 business days and will be open for 20 business days, with possible extensions as per the merger agreement and SEC regulations. Additionally, Crown Electrokinetics has made the decision to voluntarily delist its securities from the Nasdaq Stock Market. The company plans to file a Form 25 Notification of Delisting with the Securities and Exchange Commission, which will remove its common stock from listing and registration on Nasdaq. These developments mark a notable period of transition for Crown Electrokinetics, impacting its market presence and shareholder arrangements.

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