GRI Bio appoints Withum as new accounting firm

GRI Bio, Inc. (NASDAQ:GRI), a pharmaceutical company with a market capitalization of $820,000, has announced a change in its independent registered public accounting firm, according to a recent 8-K filing with the Securities and Exchange Commission. According to InvestingPro data, the company’s overall financial health score is currently rated as WEAK, with significant challenges reflected in its stock performance, which has declined nearly 89% year-to-date. On Monday, the company’s Audit Committee approved the dismissal of Sadler Gibb & Associates LLC and appointed WithumSmith+Brown, PC as the new auditor for the fiscal year ending December 31, 2025.

The decision to change auditors was not due to any disagreements on matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. The reports from Sadler for the fiscal years ended December 31, 2024 and 2023 contained no adverse opinions or disclaimers and were not modified except for an explanatory paragraph regarding the company’s ability to continue as a going concern.

During the aforementioned fiscal years and the interim period through April 11, 2025, there were no disagreements or "reportable events" between GRI Bio and Sadler, except for previously disclosed material weaknesses in internal control over financial reporting related to the pre-pricing of certain warrants. InvestingPro analysis shows the company maintains a healthy current ratio of 3.43, indicating strong short-term liquidity despite reporting negative EBITDA of $8.23 million in the last twelve months. This issue was discussed with the Audit Committee and Sadler, and no restatements of prior periods were required. GRI Bio has implemented a plan to remediate the material weakness.

Sadler has provided a letter, dated April 15, 2025, agreeing with the company’s statements in the filing. Withum, the newly appointed accounting firm, has not consulted with GRI Bio on any matters that would require disclosure under the SEC’s regulations during the two most recent fiscal years or the interim period.

The transition of the accounting firm comes as GRI Bio continues its operations in the pharmaceutical preparations sector, with corporate headquarters at 2223 Avenida de la Playa, Suite 208, La Jolla, CA. This change in auditors is part of the company’s ongoing efforts to maintain strong financial reporting practices. InvestingPro subscribers have access to over 10 additional key insights about GRI Bio’s financial health, valuation metrics, and growth prospects, which could be crucial for understanding the company’s future trajectory.

This news is based on a press release statement from GRI Bio’s recent SEC filing.

In other recent news, GRI Bio, Inc. announced positive interim safety data from its Phase 2a study of GRI-0621 for idiopathic pulmonary fibrosis. The study showed the drug was safe and well-tolerated in the first 12 patients, with no significant changes in lipid levels, prompting the Independent (LON:IOG) Data Monitoring Committee to recommend the trial proceed without modifications. H.C. Wainwright reaffirmed a Buy rating on GRI Bio, maintaining a $10 price target, reflecting confidence in the drug’s potential. Additionally, GRI Bio announced a $5 million public offering, with shares and warrants priced at $3.60 each, potentially raising further funds if warrants are exercised. The proceeds are intended for product development and general corporate purposes. The company also secured global patents for its NKT cell modulators, enhancing its intellectual property portfolio. These patents cover novel methods and compositions for treating autoimmune and inflammatory diseases. Furthermore, GRI Bio has regained compliance with the Nasdaq minimum bid price requirement, confirming its stock meets necessary listing standards.

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