SRx Health Solutions appoints CBIZ CPAs as new auditor

SRx Health Solutions, Inc., previously known as Better Choice Company Inc., has announced a change in its independent registered public accounting firm. With a current market capitalization of $5.06 million and annual revenue of $34.98 million, the company operates with a relatively strong balance sheet, maintaining more cash than debt. Effective April 23, 2025, Marcum LLP, which had been serving as the company’s auditor, resigned and CBIZ (NYSE:CBZ) CPAs P.C. was appointed as the new auditor for the fiscal year ending December 31, 2025. This change comes after CBIZ CPAs acquired the attest business of Marcum on November 1, 2024. According to InvestingPro, the company shows signs of being undervalued based on its Fair Value analysis.

The decision to engage CBIZ CPAs was made by the Audit Committee of SRx Health Solutions’ Board of Directors. The company has clarified that there were no consultations with CBIZ CPAs about the application of accounting principles or the type of audit opinion that might be rendered on the company’s financial statements prior to their engagement. With the next earnings report due on May 12, 2025, investors can access comprehensive analysis and additional insights through InvestingPro’s detailed research reports, which cover over 1,400 US stocks including SRx Health Solutions.

Marcum’s reports on the company’s consolidated financial statements for the year ended December 31, 2024, did not contain any adverse opinion or disclaimer of opinion. However, they included an explanatory paragraph concerning the company’s ability to continue as a going concern. The company maintains a healthy current ratio of 2.1, indicating sufficient liquid assets to meet short-term obligations, though it has not been profitable over the last twelve months.

Moreover, during the period through April 23, 2025, there were no disagreements between the company and Marcum on matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures. There were also no reportable events, except for the identification of material weaknesses in the company’s internal control over financial reporting as of December 31, 2024. These weaknesses, related to information technology general controls and controls over revenue recognition, have not yet been remediated but did not result in any misstatements or changes to previously reported financial results. Despite these challenges, InvestingPro analysis indicates that analysts expect both sales growth and a return to profitability in the current year.

SRx Health Solutions provided Marcum with a copy of the current report before filing it with the SEC and has requested a letter from Marcum stating whether it agrees with the statements made in the report. The letter from Marcum, dated April 29, 2025, is filed as Exhibit 16.1 with this report.

This information is based on a press release statement and the company’s recent SEC filing.

In other recent news, Better Choice Company Inc. has finalized a definitive agreement to acquire SRx Health Solutions Inc. in an all-stock transaction, issuing 30 million shares to SRx shareholders. This merger, approved by both companies’ boards and stockholders, will make SRx an indirect wholly-owned subsidiary of Better Choice. In a related financial maneuver, SRx Health converted CAD$4 million of debt into equity, which Better Choice’s Chairman Michael Young believes will strengthen the merged entity. Additionally, Better Choice has reinstated its stock buyback program, increasing the authorization to repurchase up to $6.5 million of its outstanding common stock by the end of 2025.

In another development, Better Choice has regained compliance with NYSE American’s listing standards, having addressed previous deficiencies related to financial thresholds. Meanwhile, SRx Health Solutions has appointed CBIZ CPAs P.C. as its new accounting firm following the resignation of Marcum LLP. This change ensures continuity in financial oversight after Marcum’s attest business was acquired by CBIZ CPAs. SRx acknowledged material weaknesses in internal control over financial reporting but confirmed no misstatements occurred. These developments reflect Better Choice and SRx Health Solutions’ strategic efforts to strengthen their positions in their respective markets.

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