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ZyVersa Therapeutics, Inc., a pharmaceutical company currently valued at $1.59 million, has announced a change in its certifying accountant. On Monday, the company reported the resignation of its former independent accounting firm, Marcum LLP, and the engagement of CBIZ (NYSE:CBZ) CPAs P.C. as its new auditor. According to InvestingPro data, the company's overall financial health score stands at 1.76, rated as 'FAIR', reflecting significant operational challenges.
The transition, which took effect today, follows CBIZ CPAs' acquisition of Marcum's attest business on November 1, 2024. This move saw the majority of Marcum's attestation partners and staff join CBIZ CPAs. The change was approved by ZyVersa's Audit Committee and comes after Marcum's service continuation through Sunday, April 4, 2025.
In its most recent fiscal years ending December 31, 2024, and 2023, ZyVersa received financial statements from Marcum that did not contain adverse opinions or disclaimers. However, they included explanatory paragraphs regarding the company's going concern status.
During the past two fiscal years and the subsequent interim period up to April 4, 2025, there were no disagreements between ZyVersa and Marcum on accounting principles, practices, disclosures, or auditing procedures that would have warranted mention in Marcum's reports. Nevertheless, ZyVersa identified material weaknesses in its internal controls over financial reporting, specifically in the design and implementation of business process controls. These control issues appear particularly significant given the company's current ratio of 0.15 and negative EBITDA of $9.13 million. For deeper insights into ZyVersa's financial health metrics and risk factors, InvestingPro subscribers have access to over 14 additional key indicators.
ZyVersa has provided Marcum with a copy of the current report and has received a letter from Marcum, dated today, confirming their agreement with the statements made in the report. This letter is filed with the U.S. Securities and Exchange Commission and is included as Exhibit 16.1 in the Form 8-K. The company's stock currently trades near its 52-week low of $0.58, reflecting ongoing market concerns about its financial position.
This announcement is based on a press release statement.
In other recent news, ZyVersa Therapeutics, Inc. has reported promising developments in its drug pipeline. The company announced new data indicating that its Inflammasome ASC Inhibitor IC 100 could be an effective treatment for obesity-associated cardiomyopathy, as published in the Journal of the American Heart Association. Additionally, a study in the journal Immunity highlighted IC 100's potential in treating Alzheimer's disease by reducing inflammation and enhancing amyloid beta degradation in a mouse model. ZyVersa has also secured $2 million in funding through a financing agreement with a U.S. institutional investor, facilitated by A.G.P./Alliance Global Partners (NYSE:GLP). This funding will support the company's general working capital needs. Furthermore, ZyVersa reported promising results from a study on heart failure with preserved ejection fraction, showcasing IC 100's cardioprotective effects in an obese animal model. The company plans to initiate further preclinical studies to explore IC 100's efficacy compared to semaglutide. These recent developments underscore ZyVersa's ongoing efforts to address significant unmet medical needs in inflammatory and renal diseases.
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