- Inspection year
- 2025
- Report date
- 08-Dec-2025
- PCAOB release
- 104-2026-018
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 24
- Part I.B deficiencies
- 15
- Report
- View PDF ↗
Deficiencies (24)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A8 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Financial Statement Presentation | The issuer presented its financial statements in a condensed format. The firm did not identify and appropriately address that the financial statements because they were condensed did not present fairly in all material respects the issuer's financial position the results of its operations and its cash flows in conformity with GAAP. (AS 2810.30 and .31) In connection with our review the issuer reevaluated the presentation of its financial statements and concluded that its financial statements should not have been presented in a condensed format. The issuer subsequently presented its financial statements in a non-condensed format in a restatement and the firm issued an audit report on the issuer's 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; AS 2810.31 | Incorrect opinion |
| 2 | Revenue | The firm did not perform procedures to evaluate the reliability of external information it used to test certain revenue beyond comparing certain of the information to an issuer-produced report that was itself based on that external information. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | Incorrect opinion |
| 3 | Deferred Revenue | For certain other revenue and the related deferred revenue the following deficiency was identified: • The firm did not evaluate whether the issuer was acting as a principal or as an agent for this revenue. (AS 2301.08) Financial statement audit only | AS 2301.8 | Incorrect opinion |
| 4 | Deferred Revenue | For certain other revenue and the related deferred revenue the following deficiency was identified: • The firm did not perform procedures to test a revenue transaction it selected for testing beyond performing procedures on the related cost of goods sold. (AS 2301.08) Financial statement audit only | AS 2301.8 | Incorrect opinion |
| 5 | Deferred Revenue | For certain other revenue and the related deferred revenue the following deficiency was identified: • During the year for another transaction the issuer recognized certain revenue that had been previously deferred. The firm did not perform procedures beyond a certain recalculation to test the appropriateness of the recognition of this revenue in the current year and the continued deferral of the remaining revenue for this transaction. (AS 2301.08) Financial statement audit only | AS 2301.8 | Incorrect opinion |
| 6 | Related Party Transactions | The issuer reported stock-based compensation issued to related parties. The firm did not perform procedures to test this compensation beyond obtaining certain issuer-produced calculations. (AS 2410.12) Financial statement audit only | AS 2410.12 | Incorrect opinion |
| 7 | Related Party Transactions | The issuer reported stock-based compensation issued to related parties. The firm did not identify and evaluate GAAP departures related to the issuer's omission of disclosures related to this compensation that are required by FASB ASC Topic 718 Compensation—Stock Compensation. (AS 2410.17; AS 2810.30 and .31) Financial statement audit only | AS 2410.17; AS 2810.30; AS 2810.31 | Incorrect opinion |
| 8 | Related Party Transactions | The issuer reported a related party note receivable and related party loans payable. The firm did not identify and evaluate GAAP departures related to the issuer's omission of disclosures related to this receivable and payable that are required by FASB ASC Topic 825 Financial Instruments and FASB ASC Topic 860 Transfers and Servicing. (AS 2410.17; AS 2810.30 and .31) Financial statement audit only | AS 2410.17; AS 2810.30; AS 2810.31 | Incorrect opinion |
Issuer B13 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Significant Transactions | During the year the issuer reported a significant transaction. The following deficiency was identified: • The firm did not perform procedures to test whether the issuer appropriately accounted for certain aspects of this transaction. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 2 | Significant Transactions | During the year the issuer reported a significant transaction. The following deficiency was identified: • The firm did not perform procedures to test the fair value of certain aspects of this transaction. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 3 | Significant Transactions | During the year the issuer reported a significant transaction. The following deficiency was identified: • The issuer engaged an external specialist to determine the fair value of another aspect of this transaction. The firm did not perform procedures to test that fair value beyond obtaining and reading the valuation reports prepared by the company specialist. Further the firm did not perform any procedures to evaluate the work of the company specialist. (AS 1105.A6 - .A10; AS 2501.07) Financial statement audit only | AS 1105.A6; AS 1105.A7 | |
| 4 | Significant Transactions | During the year the issuer reported a significant transaction. The following deficiency was identified: • The issuer engaged an external specialist to determine the fair value of another aspect of this transaction. The firm did not perform procedures to test that fair value beyond obtaining and reading the valuation reports prepared by the company specialist. Further the firm did not perform any procedures to evaluate the work of the company specialist. (AS 1105.A6 - .A10; AS 2501.07) Financial statement audit only | AS 1105.A8; AS 1105.A9 | |
| 5 | Significant Transactions | During the year the issuer reported a significant transaction. The following deficiency was identified: • The issuer engaged an external specialist to determine the fair value of another aspect of this transaction. The firm did not perform procedures to test that fair value beyond obtaining and reading the valuation reports prepared by the company specialist. Further the firm did not perform any procedures to evaluate the work of the company specialist. (AS 1105.A6 - .A10; AS 2501.07) Financial statement audit only | AS 1105.A10; AS 2501.7 | |
| 6 | Significant Transactions | During the year the issuer reported a significant transaction. The following deficiency was identified: • The firm did not perform procedures to test the existence and completeness of certain aspects of this transaction. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 7 | Significant Transactions | During the year the issuer reported a significant transaction. The following deficiency was identified: • The firm did not identify and evaluate GAAP departures related to the issuer's omission of and inaccurate disclosures related to this significant transaction. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 8 | Revenue | The issuer reported several types of revenue. The following deficiency was identified: • The firm did not perform any substantive procedures to examine a material adjustment the issuer made to revenue during the course of preparing the financial statements. (AS 2301.41) Financial statement audit only | AS 2301.41 | |
| 9 | Revenue | The issuer reported several types of revenue. The following deficiency was identified: • For one type of revenue the firm did not perform procedures to evaluate whether the issuer satisfied its performance obligations before recognizing revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 10 | Revenue | The issuer reported several types of revenue. The following deficiency was identified: • For other types of revenue the firm did not perform procedures to evaluate whether the issuer satisfied its performance obligations beyond obtaining evidence of cash receipts or an issuerprepared schedule in certain instances. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 11 | Deferred Revenue | The firm did not perform any substantive procedures to evaluate the classification of deferred revenue as current or non-current. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 12 | Deferred Revenue | The firm did not identify and evaluate GAAP departures related to the issuer's omission of disclosures related to revenue and deferred revenue that are required by FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 13 | Journal Entries | The firm did not consider the characteristics of potentially fraudulent journal entries when identifying and selecting entries for testing. (AS 2401.61) Financial statement audit only | AS 2401.61 |
Issuer C3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform any substantive procedures to test revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Intangible Assets | The firm did not perform any substantive procedures to evaluate how the issuer tested its intangible assets for potential impairment as events or changes in circumstances existed that indicated that the carrying amount of the intangible assets may not be recoverable. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 3 | Journal Entries | The firm did not consider the characteristics of potentially fraudulent journal entries when identifying and selecting entries for testing. (AS 2401.61) Financial statement audit only | AS 2401.61 |