Basanite (BASA) drops Hudgens CPA as auditor after PCAOB withdrawal
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Basanite, Inc. reported a change in its independent auditor after discovering that Hudgens CPA, PLLC had withdrawn from the PCAOB and ceased operations in late 2025 without prior notice to the company. On June 2, 2026, the board terminated Hudgens as its Independent Registered Public Accounting Firm.
Hudgens’ audit reports on Basanite’s consolidated financial statements for the years ended December 31, 2024 and December 31, 2023 were unqualified, with no adverse opinions, disclaimers, or modifications. The company states there were no disagreements or reportable events with Hudgens through June 2, 2026 and has asked the firm to confirm these statements in a letter to the SEC.
Positive
- None.
Negative
- None.
8-K Event Classification
2 items: 4.01, 9.01
2 items
Item 4.01
Changes in Registrant's Certifying Accountant
Governance
The company changed its independent auditing firm, which may involve disagreements on accounting matters.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Auditor termination date: June 2, 2026
Audit years covered: Fiscal years 2023 and 2024
Reportable disagreements: None reported
3 metrics
Auditor termination date
June 2, 2026
Board ended Hudgens CPA, PLLC engagement
Audit years covered
Fiscal years 2023 and 2024
Hudgens’ reports on consolidated financial statements
Reportable disagreements
None reported
Through June 2, 2026 under Item 304 of Regulation S-K
Key Terms
Independent Registered Public Accounting Firm, PCAOB, Item 304(a)(1)(iv) of Regulation S-K, reportable events
4 terms
Independent Registered Public Accounting Firm financial
"terminated the services of Hudgens CPA, PLLC, its Independent Registered Public Accounting Firm"
An independent registered public accounting firm is an outside accounting company officially registered with the government regulator to examine and report on a public company's financial records and controls. Investors treat its reports like an impartial inspector’s certificate — they add credibility to financial statements, help spot errors or misleading claims, and reduce the risk that shareholders are relying on unchecked or biased numbers.
PCAOB regulatory
"discovered that Hudgens CPA, PLLC as of November 2025 and December 2025 has withdrawn from the PCAOB"
The PCAOB (Public Company Accounting Oversight Board) is an independent regulator that inspects and enforces rules for the auditors who check public companies’ financial statements. Think of it as a referee for accountants: it sets standards, reviews audit work, and can punish sloppy or dishonest audits. That matters to investors because trustworthy, well-audited financial reports reduce the risk of surprises and help people make better decisions about buying, holding, or selling stocks.
Item 304(a)(1)(iv) of Regulation S-K regulatory
"no disagreements within the meaning of Item 304(a)(1)(iv) of Regulation S-K"
reportable events regulatory
"there were no reportable events within the meaning of Item 304(a)(1)(v) of Regulation S-K"
Reportable events are significant incidents or changes a company is legally required to disclose to regulators and the public, such as major safety problems, legal actions, financial irregularities, or management changes. They matter to investors because these events can alter a company’s risk profile or future performance, much like a dashboard warning light signals a problem that could affect a car’s safety or reliability. Timely disclosure helps investors make informed decisions and maintain market fairness.
FAQ
What did Basanite (BASA) disclose about its independent auditor?
Basanite disclosed that its board terminated Hudgens CPA, PLLC as its Independent Registered Public Accounting Firm on June 2, 2026, after learning the firm had withdrawn from the PCAOB and ceased operations. The disclosure focuses on the auditor change and related regulatory requirements.
Why did Basanite end its engagement with Hudgens CPA, PLLC?
Basanite ended the engagement after discovering that Hudgens CPA, PLLC had withdrawn from the PCAOB and ceased operations in November and December 2025. The company indicates it had no communications with Hudgens since November 2025 and then formally terminated the firm on June 2, 2026.
Were there any disagreements between Basanite and Hudgens over accounting or auditing issues?
Basanite states there were no disagreements with Hudgens on accounting principles, financial statement disclosure, or audit scope during 2023, 2024, or through June 2, 2026. The company also reports no reportable events under Item 304(a)(1)(v) of Regulation S-K during that period.
How did Hudgens CPA’s reports on Basanite’s financial statements characterize the company’s results?
Hudgens CPA’s reports on Basanite’s consolidated financial statements for the years ended December 31, 2023 and 2024 did not include adverse opinions or disclaimers. They were not qualified or modified for uncertainty, audit scope, or accounting principles, according to Basanite’s disclosure.
What regulatory steps did Basanite take after terminating Hudgens CPA, PLLC?
Basanite provided Hudgens with a copy of its disclosure and requested a letter addressed to the SEC stating whether Hudgens agrees with the company’s statements. This step is part of the disclosure requirements for changes in a registrant’s certifying accountant under SEC rules.
Does Basanite’s 8-K mention a new independent auditor being appointed?
The disclosure focuses on terminating Hudgens CPA, PLLC and describing the absence of disagreements or reportable events. It does not in this text identify a successor auditor, concentrating instead on the circumstances of the change and required SEC communications.