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Mercer (NASDAQ:MERC) Island-based Kineta, Inc., a micro-cap pharmaceutical company with a market capitalization of just $4.05 million, has announced a change in its independent registered public accounting firm. The company, which was formerly known as Yumanity Therapeutics and Proteostasis Therapeutics (OTC:KANT), disclosed in a recent SEC filing that Marcum LLP resigned and was replaced by CBIZ (NYSE:CBZ) CPAs P.C. as of Thursday. According to InvestingPro data, the stock has taken a significant hit, dropping over 24% in the past week.
This shift in certifying accountant comes after CBIZ CPAs acquired the attest business of Marcum, effective November 1, 2024. Marcum had continued to serve as Kineta’s independent auditor until March 27, 2025, overseeing the company’s financial statements for the fiscal years ending December 31, 2023, and December 31, 2024.
The transition to CBIZ CPAs was approved by Kineta’s Audit Committee and is anticipated to maintain continuity, as the audit team serving Kineta is expected to be largely the same as Marcum’s. Marcum’s reports for the past two fiscal years included an explanatory paragraph concerning the substantial doubt about Kineta’s ability to continue as a going concern, highlighting financial uncertainties facing the firm. InvestingPro analysis supports these concerns, revealing a weak financial health score of 1.42, with current liabilities significantly exceeding liquid assets and an EBITDA of -$13.52 million in the last twelve months. Get access to 5 more crucial ProTips about Kineta’s financial status with an InvestingPro subscription.
Furthermore, Kineta acknowledged material weaknesses in its internal control over financial reporting for the end of fiscal years 2023 and 2024. These weaknesses pertained to complex financial instruments, allocated facilities costs, warrant issues to stockholders, offering costs, and accounting for exclusivity payments related to a business combination.
Despite these internal control concerns, there were no reported disagreements between Kineta and Marcum on accounting principles, practices, financial statement disclosure, or auditing scope or procedure that would have required Marcum to reference such matters in their reports.
Kineta has provided Marcum with the statements made in the SEC filing and has included a letter from Marcum, dated March 27, 2025, as an exhibit, confirming their agreement with the disclosures.
The information in this article is based on Kineta’s recent SEC filing and enhanced with real-time financial metrics from InvestingPro. Unlock comprehensive financial analysis, Fair Value estimates, and expert insights with an InvestingPro subscription.
In other recent news, Kineta, Inc. has announced a securities exchange agreement with an existing investor, as detailed in a recent SEC filing. The agreement involves the issuance of 1,880,342 shares of common stock and a pre-funded warrant in exchange for the cancellation of existing warrants that allowed the investor to purchase up to 2,315,387 shares. This strategic move is linked to Kineta’s planned merger with TuHURA Biosciences, Inc., with the investor agreeing to vote in favor of the merger proposals. The merger, detailed in a Merger Agreement dated December 11, 2024, is aimed at expanding Kineta’s capabilities in the pharmaceutical sector. The shares issued in this exchange are not registered under the Securities Act and cannot be sold in the U.S. without registration or an exemption. The planned merger is subject to approval by Kineta’s stockholders and other customary closing conditions. This development provides investors with insight into Kineta’s financial strategies and its potential future direction in the market.
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