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Oncocyte Corporation (NASDAQ:OCX), a diagnostic and molecular testing company with a market capitalization of approximately $81 million, has announced changes to its independent accounting firm, as detailed in a recent 8-K filing with the U.S. Securities and Exchange Commission. The Irvine, California-based company, which specializes in in vitro and in vivo diagnostic substances, revealed that it has engaged CBIZ (NYSE:CBZ) CPAs P.C. as its new certifying accountant. According to InvestingPro data, the company currently operates with a moderate debt level and faces profitability challenges, with an EBITDA of -$21.7 million in the last twelve months.
The transition comes after Marcum LLP’s attest business was acquired by CBIZ CPAs on November 1, 2024. Marcum continued to serve as Oncocyte’s independent registered public accounting firm until April 11, 2025. Following Marcum’s termination, the Audit Committee of the Company’s Board of Directors approved the engagement of CBIZ CPAs on April 16, 2025, for the fiscal year ending December 31, 2025.
According to the filing, Oncocyte had not consulted with CBIZ CPAs on any accounting principles or audit opinions prior to their engagement. Additionally, the reports by Marcum for the fiscal years ended December 31, 2024, and 2023 did not contain any adverse opinions or disclaimers. However, the report for 2023 included an explanatory paragraph regarding substantial doubt about the company’s ability to continue as a going concern. This concern appears validated by recent financial metrics, as InvestingPro analysis shows the company is quickly burning through cash, with a negative free cash flow yield of -26%.
The company confirms that there were no disagreements or reportable events between Oncocyte and Marcum during the fiscal years in question or up to the date of Marcum’s termination. Marcum has been provided with a copy of the 8-K report and has been requested to furnish a letter to the SEC, stating whether it agrees with the statements made by Oncocyte in the filing. This letter from Marcum, dated April 17, 2025, has been filed as Exhibit 16.1 with the 8-K report.
This change in the company’s certifying accountant is a significant corporate governance event for Oncocyte and its stakeholders. Investors should note that the company’s next earnings report is scheduled for May 9, 2025, where management may provide updates on their financial position and strategic initiatives. The information in this article is based on the company’s press release statement and InvestingPro data, which offers comprehensive analysis including 8 additional key insights about OCX’s financial health and market position.
In other recent news, OncoCyte Corp reported its Q4 2024 earnings, with $1.5 million in revenue from pharma services and a 40% gross margin. The company concluded the year with $10 million in cash reserves, supplemented by an additional $29 million raised in February 2024. As OncoCyte advances its strategic focus on transplant testing, it is preparing for the launch of its GraftAssureDx Kidney kitted test, expected in the first half of 2026, pending FDA approval. The company has also managed to reduce its quarterly cash burn to approximately $6 million, aiming to maintain this throughout 2025.
OncoCyte has been making strides in financial management and strategic partnerships, which are key factors in Needham’s maintained Buy rating with a $4.25 price target. Additionally, Lake Street Capital Markets initiated coverage on OncoCyte with a Buy rating and a $5.00 price target, citing the company’s innovative approach to transplant rejection testing. OncoCyte is currently in Phase 3 of its kitted test’s launch process, focusing on assay verification and validation, with plans to collaborate with at least 20 transplant centers across the United States and Germany by the end of 2025. These developments suggest confidence in OncoCyte’s trajectory and potential market impact.
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