SRx Health Solutions appoints new accounting firm

Published 29/04/2025, 22:34
SRx Health Solutions appoints new accounting firm

SRx Health Solutions, Inc. (BTTR), a Delaware-incorporated company in the beverages industry with a market capitalization of $72.57 million, has announced a change in its certifying accountant, according to a recent 8-K filing with the U.S. Securities and Exchange Commission. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.1, though it faces profitability challenges with negative earnings in the last twelve months. Effective April 23, 2025, Marcum LLP resigned as the independent registered public accounting firm for SRx Health Solutions, formerly known as Better Choice Company Inc. and Sport Endurance, Inc. In its place, CBIZ (NYSE:CBZ) CPAs P.C. has been engaged to audit the company’s financial statements for the year ending December 31, 2025.

The transition follows the acquisition of Marcum’s attest business by CBIZ CPAs on November 1, 2024. The Audit Committee of SRx Health Solutions’ Board of Directors approved the appointment of CBIZ CPAs. This move is expected to ensure continuity in the company’s financial oversight as CBIZ CPAs will now provide the services previously delivered by Marcum. With the company’s next earnings report due on May 12, 2025, InvestingPro analysts project improved performance, forecasting revenue growth of 6.15% for fiscal year 2025.

Prior to the appointment of CBIZ CPAs, SRx Health Solutions had not consulted with the firm regarding any accounting principles or potential audit opinions. Moreover, Marcum’s reports for fiscal year 2024 did not contain any adverse opinions or disclaimers and were not qualified on accounting principles. However, there was an explanatory paragraph concerning the company’s ability to continue as a going concern.

It is also noted that during the fiscal year 2024 and up to the resignation date, there were no disagreements between SRx Health Solutions and Marcum on accounting principles, practices, or auditing scope that would have required mention in Marcum’s reports. Nonetheless, the company acknowledged material weaknesses in its internal control over financial reporting related to information technology controls and revenue recognition as of December 31, 2024, which have not been fully remediated but did not result in any misstatements or changes to reported financial results. Despite these challenges, InvestingPro data shows the company maintains a healthy balance sheet with more cash than debt, and its Financial Health Score stands at "Fair." For deeper insights into BTTR’s financial position and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The company has provided Marcum with the contents of the 8-K filing for review. In response, Marcum has submitted a letter to the SEC, dated April 29, 2025, confirming their agreement with the statements made in the filing regarding their resignation and the engagement of CBIZ CPAs. This letter is included in the filing as Exhibit 16.1.

The information in this article is based on a press release statement from SRx Health Solutions, Inc.

In other recent news, Better Choice Company Inc. reported its financial results for the fourth quarter of 2024, showing a significant improvement in net loss and operational efficiencies. The company experienced a 9% decline in annual net revenues to $35 million but improved its gross profit margin by 650 basis points to 37%. Additionally, Better Choice announced a definitive agreement to acquire SRx Health Solutions Inc., with the transaction involving the issuance of 30 million shares to SRx shareholders. This strategic acquisition, approved by both companies’ boards and the Ontario Superior Court of Justice, will make SRx an indirect wholly-owned subsidiary of Better Choice. The company has also reinstated its stock repurchase program, increasing the authorization to buy back up to $6.5 million of its outstanding common stock by the end of 2025. Better Choice has regained compliance with NYSE American’s listing standards, following previous deficiencies. Furthermore, SRx Health converted CAD$4 million of debt into equity, as part of the ongoing merger process, which is expected to finalize by late April. These recent developments highlight Better Choice’s strategic initiatives aimed at strengthening its market position and financial structure.

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