Professional Diversity Network changes auditor, appoints SR CPA & Co.

Published 04/08/2025, 13:56
Professional Diversity Network changes auditor, appoints SR CPA & Co.

Professional Diversity Network, Inc. (NASDAQ:IPDN) reported a change in its independent registered public accounting firm, according to a press release statement based on a recent SEC filing. The company, which maintains impressive gross profit margins of 58%, has been facing financial challenges, with InvestingPro data showing a concerning cash burn rate and negative EBITDA of $2.22 million in the last twelve months.

On Wednesday, the company received a resignation letter from Sassetti LLC, which had served as its independent auditor. Sassetti’s resignation was effective July 24, 2025, with the company receiving formal notification on July 30, 2025, after the completion of outstanding payments and logistical matters. According to the filing, Sassetti’s decision to resign was attributed to scheduling conflicts and resource considerations, not to any issues related to the company’s audit. The company’s board did not participate in the decision.

Sassetti’s audit reports for the fiscal years ended December 31, 2024 and December 31, 2023 did not contain adverse opinions or disclaimers, nor were they qualified or modified regarding uncertainty, audit scope, or accounting principles, except for an explanatory paragraph about the company’s ability to continue as a going concern due to recurring losses and net capital deficiency.

The filing states that during the two most recent fiscal years and the interim period up to Sassetti’s resignation, there were no disagreements between the company and Sassetti on accounting principles, practices, financial statement disclosure, or audit procedures that would have required disclosure. There were also no reportable events as defined by SEC regulations.

Following Sassetti’s resignation, the company engaged SR CPA & Co., a Public Company Accounting Oversight Board registered firm, as its new independent auditor effective July 31, 2025. The appointment was approved by the company’s audit committee. The filing notes that neither the company nor its representatives consulted with SR CPA & Co. on any accounting matters or audit opinions prior to the engagement.

A letter from Sassetti LLC confirming the company’s disclosures is included as an exhibit to the filing.

In other recent news, Professional Diversity Network, Inc. has announced significant changes in its executive leadership. The company appointed Xun Wu as the new CEO following the resignation of Adam He, whose departure was not due to any disagreements with the company. Additionally, Megan Bozzuto stepped down as interim CFO, and Lisa Fan was named her successor with an annual salary of $60,000, which will increase post-interim, along with stock awards valued at $20,000 annually.

The company also disclosed the issuance of $400,000 in convertible notes to two non-affiliated accredited investors. These notes are convertible into restricted shares of common stock under specific conditions. Furthermore, Professional Diversity Network entered into a warrant exchange agreement, surrendering 500,000 warrants for 333,333 shares of common stock. These developments reflect ongoing strategic adjustments within the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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