IEH Corp appoints new accounting firm

IEH Corporation (OTC Pink:IEHC), a $17.9 million market cap manufacturer of electronic connectors based in Brooklyn, NY, has announced a change in its independent registered public accounting firm. The company, which has demonstrated robust financial health with a current ratio of 8.55 and impressive revenue growth of 43.7% over the last twelve months, according to InvestingPro data, has announced a change in its independent registered public accounting firm. In a recent filing with the Securities and Exchange Commission, the company disclosed that effective March 18, 2025, Marcum LLP has resigned and CBIZ (NYSE:CBZ) CPAs P.C. has been engaged as the new auditor.

The transition follows the acquisition of Marcum’s attest business by CBIZ CPAs on November 1, 2024. Despite the change in firms, the audit team servicing IEH Corp is expected to remain largely consistent, as the CBIZ CPAs audit team will initially include many of the same members from Marcum.

According to the filing, there were no disagreements between IEH Corp and Marcum on any accounting principles or practices, financial statement disclosure, or auditing scope or procedure during the fiscal years ended March 31, 2024, and 2023, as well as the subsequent interim period through March 18, 2025. Additionally, there were no reportable events as defined by SEC regulations during these periods.

The engagement of CBIZ CPAs was approved by the Audit Committee of IEH Corp’s Board of Directors. Marcum’s reports on the company’s financial statements for the past two fiscal years did not contain any adverse opinion or disclaimer of opinion and were not qualified or modified regarding uncertainty, audit scope, or accounting principles.

IEH Corp has provided Marcum with the disclosures made in the SEC filing and has received a letter from Marcum, dated March 18, 2025, agreeing with the statements made. This letter has been attached as Exhibit 16.1 to the current report on Form 8-K.

The company’s decision to switch auditors comes as part of the normal course of business and does not reflect any issues with the quality or accuracy of its financial reporting. The information regarding this change is based on the company’s statement in the SEC filing. InvestingPro analysis indicates IEH maintains strong financial health with minimal leverage, showing a debt-to-equity ratio of just 0.1 and more cash than debt on its balance sheet. Currently trading below its Fair Value, IEH shows promising fundamentals with 8 additional exclusive insights available to InvestingPro subscribers.

In other recent news, IEH Corporation has finalized a new employment agreement with its Chief Executive Officer and President, David Offerman. According to a recent SEC filing, the contract will be effective from January 1, 2025, and will extend through December 31, 2029. Under this agreement, Mr. Offerman’s annual base salary is set at $491,745, with the potential for a performance-based annual bonus of up to 100% of his base salary. Additionally, he will receive 25,000 stock options as part of the company’s 2020 Equity Based Compensation Plan, with an exercise price of $10.75 per share for the fiscal year ending March 31, 2025. The agreement includes provisions for termination without "cause" or resignation for "good reason," entitling Mr. Offerman to a severance package of 36 months of base salary and up to 24 months of continued health and welfare plan participation. In case of a "change in control," Mr. Offerman could receive similar compensation and benefits. The contract also includes standard confidentiality, non-solicitation, and non-competition obligations following employment termination. This development is part of IEH Corporation’s ongoing management structuring efforts.

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