HeartBeam names new auditor after Marcum resignation

HeartBeam, Inc. (NASDAQ:BEAT), a medical device company with a market capitalization of $64.75 million, announced on Monday that its previous independent registered public accounting firm, Marcum LLP, has resigned. Following this development, the company’s Audit Committee has appointed CBIZ (NYSE:CBZ) CPAs P.C. as its new auditor for the fiscal year ending December 31, 2025. According to InvestingPro data, the company faces financial challenges with negative EBITDA of -$19.88 million in the last twelve months.

The transition comes after CBIZ CPAs acquired Marcum’s attest business on November 1, 2024. Marcum continued to serve as HeartBeam’s auditor until April 21, 2025, the date of their resignation. The reports by Marcum for the fiscal years ending December 31, 2024, and December 31, 2023, did not contain any adverse opinion or disclaimer and were not qualified or modified, except for an explanatory paragraph regarding the company’s ability to continue as a going concern.

During the fiscal years 2023 and 2024, and the subsequent interim period through April 21, 2025, there were no disagreements with Marcum on accounting principles or practices, financial statement disclosure, or auditing scope or procedure that would have required Marcum to reference such disagreements in their reports. However, a material weakness was identified in the company’s internal control over financial reporting, which has been disclosed and remediated as per HeartBeam’s Annual Report for the fiscal year ended December 31, 2024. InvestingPro analysis reveals the company maintains a current ratio of 1.71, indicating adequate short-term liquidity despite operational challenges.

Neither HeartBeam nor anyone on its behalf consulted CBIZ CPAs on accounting principles or auditing issues that would be considered significant or as having led to a disagreement during the two most recent fiscal years or the interim period up to April 21, 2025.

Marcum has been provided with a copy of this announcement and has been requested by HeartBeam to furnish a letter to the SEC stating their agreement or disagreement with the statements made. The letter from Marcum, dated April 25, 2025, has been filed with the SEC as part of HeartBeam’s Form 8-K.

This corporate update is based on a press release statement and provides essential information for investors regarding HeartBeam’s accounting oversight and financial reporting processes. Investors should note that HeartBeam’s next earnings report is scheduled for May 8, 2025. For comprehensive analysis and additional insights, including 6 more exclusive ProTips and detailed financial metrics, explore the in-depth research available on InvestingPro.

In other recent news, HeartBeam Inc. reported its fourth-quarter earnings for 2024, revealing a significant shortfall with an EPS of -$0.73 compared to the forecasted -$0.17. Despite this, the company remains focused on its innovative ECG technology and plans for future commercialization. Analysts from Benchmark have maintained a Speculative Buy rating and an $8.00 price target for HeartBeam, emphasizing the company’s progress and its readiness for an initial commercial launch later this year. HeartBeam has received FDA 510(k) clearance for its at-home heart monitoring technology, which is designed to capture heart signals in three dimensions. A subsequent 510(k) clearance is anticipated in the second half of the year, which will include algorithms for translating 3-D heart signals into synthesized 12-lead ECG readings. Additionally, HeartBeam announced a strategic collaboration with AccurKardia to integrate their FDA-cleared ECG analysis software into HeartBeam’s devices. This partnership aims to enhance remote cardiac monitoring and improve patient outcomes. HeartBeam’s financial position is supported by an equity financing round in February, resulting in a pro forma cash balance of approximately $12.6 million.

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