- Inspection year
- 2025
- Report date
- 25-Sep-2025
- PCAOB release
- 104-2025-155
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 33%
- Part I.A deficiencies
- 1
- Part I.B deficiencies
- 4
- Report
- View PDF ↗
Deficiencies (1)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Contingent Consideration Liability | During the year the issuer acquired a business. As part of the consideration the issuer recorded a contingent consideration liability related to the sellers' rights to receive additional shares contingent upon the exercise or conversion of convertible notes options and warrants. The firm did not identify and evaluate a departure from GAAP related to the issuer not reflecting that certain warrants had been exercised after the acquisition in its determination of the contingent consideration liability at year end. (AS 2810.30) In connection with our review the issuer reevaluated its accounting for the contingent consideration liability and concluded that a material misstatement existed that had not been previously identified. The issuer subsequently corrected this misstatement in a restatement of its financial statements and the firm issued an audit report on the restated financial statements. Our procedures did not include review of any additional audit work related to the restatement. Financial statement audit only | AS 2810.30 | Incorrect opinion |