Filing Analysis
Leafbuyer Technologies, Inc. has appointed BCRG Group as its new independent registered public accounting firm. The new auditor will be responsible for re-auditing the company's consolidated financial statements for the fiscal years ending June 30, 2023, and June 30, 2024.
🚩 Red Flags
- Requirement to re-audit two previous fiscal years (2023 and 2024) suggests potential issues with prior financial reporting or auditor dissatisfaction.
- Auditor changes in micro-cap companies often precede restatements or indicate internal control weaknesses.
📋 Key Facts
- Engagement of BCRG Group (BCRG) as the new independent registered public accounting firm on September 25, 2024.
- The new auditor will re-audit fiscal years ending June 30, 2023, and June 30, 2024.
- The company stated it has not consulted with BCRG regarding any disagreements or reportable events prior to the appointment.
Leafbuyer Technologies, Inc. announced the dismissal of its independent registered public accounting firm, Barton CPA, effective September 24, 2024. The company states there were no disagreements with the previous auditor regarding accounting principles or auditing scope.
🚩 Red Flags
- High turnover of auditors: The previous firm (Barton CPA) was only appointed in June 2024, meaning the relationship lasted less than four months before dismissal.
- Rapid auditor change in a micro-cap company often signals underlying disagreements or difficulties in obtaining clean audits.
📋 Key Facts
- Dismissal of Barton CPA approved by the Audit Committee on September 24, 2024.
- Barton CPA had been appointed as the independent accounting firm on June 10, 2024.
- The company claims no disagreements with Barton CPA regarding financial statement disclosures or auditing procedures.
- Previous audit reports for Q1 2023 and Q1 2024 Re-Review did not contain adverse opinions or disclaimers.
Leafbuyer Technologies, Inc. has appointed Barton CPA Firm as its new independent registered public accounting firm. The appointment includes a mandate to re-review the company's 10-Q filings for 2023 and 2024, as well as fiscal year audits for 2023 and 2024.
🚩 Red Flags
- Auditor change combined with a mandate to 're-review' prior periodic reports (10-Qs) is a significant red flag often associated with potential restatements or internal control issues.
- The need for re-reviewing past 2023 and 2024 filings suggests the previous financial statements may no longer be reliable.
📋 Key Facts
- Barton CPA Firm was appointed on June 10, 2024.
- The new auditor is tasked with re-reviewing the company's 10-Q filings for 2023 and 2024.
- The engagement includes auditing consolidated financial statements for fiscal years ended June 30, 2023, and June 30, 2024.
- The company states there were no disagreements with the previous auditor regarding accounting principles or practices.
Leafbuyer Technologies, Inc. has dismissed its independent auditor, BF Borgers CPA PC, effective May 8, 2024. The dismissal follows an SEC order against the firm for fraudulent audit practices and failure to comply with PCAOB standards.
🚩 Red Flags
- Auditor change triggered by SEC enforcement action/fraudulent practices
- Audit firm barred from practicing before the SEC, rendering previous audits highly suspect
- Potential for significant restatements of prior years' financial statements (2022 and 2023) due to fraudulent audit reports
- Risk of material weakness in internal controls over financial reporting
📋 Key Facts
- Dismissal of BF Borgers CPA PC occurred on May 8, 2024.
- The dismissal was prompted by an SEC Order dated May 3, 2024, against the auditor and its sole partner, Benjamin F. Borgers.
- The SEC found that BF Borgers systematically failed to conduct audits in accordance with PCAOB standards and fraudulently issued audit reports.
- BF Borgers is barred from appearing or practicing before the Commission.
- The Company's Audit Committee and Board of Directors unanimously supported the dismissal.
- The Company has not yet appointed a replacement auditor.