iSpecimen appoints new accounting firm after resignation

iSpecimen Inc. (NASDAQ:ISPC), a commercial physical and biological research services provider with a market capitalization of $1.3 million and currently trading at $1.35 per share, has announced a change in its certifying accountant. According to InvestingPro data, the company faces significant financial challenges, with negative EBITDA of $9.5 million in the last twelve months. On March 7, 2025, Wolf & Company, P.C., the company’s previous independent registered public accounting firm, resigned effective immediately. The company filed this information in a Form 8-K with the Securities and Exchange Commission (SEC) on Tuesday.

The resignation follows audit reports for the fiscal years ended December 31, 2023, and December 31, 2022, which did not contain any adverse opinion or disclaimer and were not qualified or modified regarding uncertainty, audit scope, or accounting principles. However, the audit report for the fiscal year ended December 31, 2023, included an explanatory paragraph about the uncertainty surrounding iSpecimen’s ability to continue as a going concern. This concern appears well-founded, as InvestingPro analysis shows the company’s current ratio at 0.74 and an Altman Z-Score of -22.41, indicating significant financial distress.

Throughout the fiscal years in question and up to the date of resignation, there were no disagreements between iSpecimen and Wolf & Company on accounting matters or auditing procedures that would have required mention in the audit reports. Additionally, no reportable events were identified under Item 304(a)(1)(v) of Regulation S-K.

In the aftermath of Wolf & Company’s resignation, iSpecimen provided the firm with the disclosures made in the 8-K report and requested a letter from the accounting firm to the SEC confirming their agreement with the statements or outlining any disagreements. Wolf & Company’s response is included as Exhibit 16.1 in the filing.

Following the resignation, iSpecimen’s Audit Committee approved the appointment of Bush & Associates CPA LLC as the new independent registered public accounting firm for the fiscal year ending December 31, 2024. This appointment occurred on March 10, 2025. Prior to their engagement, iSpecimen had not consulted Bush & Associates on any accounting principles or auditing opinions, nor had there been any disagreements or reportable events with them.

This change in iSpecimen’s accounting firm is part of the corporate developments that the company is required to report to the SEC and the investing public. The information provided is based on the company’s recent SEC filing. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 14 additional ProTips and a detailed Pro Research Report, providing crucial intelligence for informed investment decisions in challenging market conditions.

In other recent news, iSpecimen Inc. has announced several key developments. The company reported strategic plans to enhance its cancer biospecimen procurement services in 2025, aiming to meet the growing demand for cancer tissues in medical research. This expansion involves new partnerships with cancer centers across the U.S., expected to improve access to critical specimens for researchers. Additionally, iSpecimen plans to establish a referral program with an international genomic sequencing partner, positioning itself as a preferred provider for cancer biospecimens.

In terms of corporate governance, iSpecimen has made significant leadership changes, appointing Ms. Katharyn Field as the new president. Ms. Field previously served on the board and will be succeeded by Ms. Siyun Yang as an independent director. Furthermore, CEO Robert Bradley Lim has expanded his role to include Treasurer and Secretary, with no changes to his compensation. These leadership transitions align with iSpecimen’s strategic objectives and are documented in recent SEC filings. The company emphasizes that these changes will not disrupt its operations.

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