Lineage Cell Therapeutics appoints new auditor

Lineage Cell Therapeutics (NYSE:LCTX), Inc. (NYSE American:LCTX), a biotechnology firm specializing in cell-based therapies with a market capitalization of $164 million, announced a change in its independent registered public accounting firm. According to InvestingPro data, the company maintains a strong financial health score of GOOD, with more cash than debt on its balance sheet. On Monday, the company disclosed that Moss Adams LLP, its previous auditor, merged with Baker Tilly US, LLP as of Sunday, June 3, 2025. Following the merger, Moss Adams resigned, and the Audit Committee of the company’s Board of Directors approved the appointment of Baker Tilly as the new auditor for the fiscal year ending December 31, 2025.

The company had appointed Moss Adams as its auditor on June 11, 2024. The audit report for the fiscal year ended December 31, 2024, did not contain any adverse opinion or disclaimer, and there were no disagreements or reportable events between Lineage Cell Therapeutics and Moss Adams during the audit period or up to the resignation date. The company’s solid financial position is reflected in its current ratio of 3.82, indicating strong liquidity with assets well exceeding short-term obligations.

Furthermore, prior to the merger, Lineage Cell Therapeutics had not consulted with Baker Tilly on any matters that would require disclosure under SEC regulations. In compliance with SEC requirements, Moss Adams has provided a letter, filed as Exhibit 16.1 to the report, confirming their agreement with the statements made by Lineage Cell Therapeutics regarding their resignation.

The company has filed this information in a Form 8-K with the U.S. Securities and Exchange Commission, providing transparency about the change in its auditor to its investors and the public. The full details of the transition are available in the company’s SEC filing. While the stock has shown significant momentum with a 43% year-to-date return, investors should note that InvestingPro subscribers have access to 12 additional exclusive tips and comprehensive analysis through the Pro Research Report, helping them make more informed investment decisions.

In other recent news, Lineage Cell Therapeutics reported a significant increase in revenue for the fourth quarter of 2024, reaching $2.9 million, up from $2.1 million in the same period the previous year. Despite this growth, the company continued to operate at a loss, although the net loss improved to $18.6 million for 2024 compared to $21.5 million in 2023. The company also announced the successful completion of a production run using a current Good Manufacturing Practice (cGMP) cell banking system, which could enhance its manufacturing capabilities across multiple programs. Analyst Albert Lowe from Craig-Hallum adjusted the price target for Lineage Cell Therapeutics to $3.00 from $4.00, maintaining a Buy rating, reflecting the potential of their OpRegen program. Lineage’s financial position appears robust, with $53.3 million in cash reserves expected to sustain operations into early 2027. The company’s ongoing clinical programs, including the OpRegen study for Geographic Atrophy and the OPC1 trial for spinal cord injuries, remain key areas of focus. Despite the optimism surrounding OpRegen’s potential, Lineage highlights the complexity and risks associated with the manufacturing process for cell therapy candidates.

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