CDT Equity (NASDAQ: CDT) appoints Carr Riggs & Ingram as auditor
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
CDT Equity Inc. reported that its audit committee dismissed CBIZ CPAs P.C. as independent auditor and approved Carr, Riggs & Ingram, L.L.C. (CRI) as the new independent registered public accounting firm, effective June 23, 2026.
CBIZ CPAs’ audit report on the year ended December 31, 2025 contained an explanatory paragraph about substantial doubt regarding CDT Equity’s ability to continue as a going concern. The company also disclosed previously identified material weaknesses in internal control over financial reporting, including limited segregation of duties, lack of formal review processes, recurring errors, inadequate control design, restatements, and inconsistent review of related-party transactions. The company states there were no disagreements with CBIZ CPAs on accounting or auditing matters, and it had not consulted CRI on accounting issues before the engagement.
Positive
- None.
Negative
- Going-concern uncertainty: The prior auditor’s 2025 report included an explanatory paragraph stating there was substantial doubt about CDT Equity’s ability to continue as a going concern.
- Multiple material weaknesses: The company cites numerous material weaknesses in internal control over financial reporting, including limited segregation of duties, recurring accounting errors, inadequate control design, restatements, and inconsistent review of related-party transactions.
- Auditor turnover: Within a relatively short period, the company has dismissed Marcum LLP, then CBIZ CPAs, and now engaged Carr, Riggs & Ingram as auditor, which may raise governance and financial reporting quality concerns.
Insights
Auditor change follows prior going-concern and control weaknesses.
CDT Equity Inc. replaced CBIZ CPAs with Carr, Riggs & Ingram as its independent auditor after CBIZ’s 2025 report included a going-concern explanatory paragraph. The company also highlights multiple material weaknesses in internal control over financial reporting.
There were no reported disagreements with CBIZ on accounting principles, disclosures, or audit scope, and the company says it did not consult CRI on specific accounting issues before engagement. This reduces concern about opinion shopping but does not address the underlying going-concern risks or control deficiencies.
From an investor perspective, the key issues remain the substantial doubt about the company’s ability to continue as a going concern and the extensive control weaknesses that previously led to restatements and recurring errors. Subsequent annual and quarterly reports will be important to see whether the new auditor relationship coincides with remediation progress.
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 dismissal date: June 23, 2026
Audit year referenced: Year ended December 31, 2025
Recent fiscal years covered: 2025 and 2024
+3 more
6 metrics
Auditor dismissal date
June 23, 2026
Date CBIZ CPAs was dismissed and CRI engaged
Audit year referenced
Year ended December 31, 2025
CBIZ CPAs’ audit report with going-concern paragraph
Recent fiscal years covered
2025 and 2024
Period referenced for auditor relationships and events
Marcum dismissal date
April 24, 2025
Marcum LLP dismissed as auditor
CBIZ appointment date
April 25, 2025
CBIZ CPAs appointed as auditor
CBIZ SEC letter date
June 29, 2026
CBIZ CPAs’ letter filed as Exhibit 16.1
Key Terms
going concern, material weaknesses, internal control over financial reporting, reportable events, +2 more
6 terms
going concern financial
"contained an explanatory paragraph regarding the Company stating that there was substantial doubt about the Company’s ability to continue as a going concern"
A going concern is a business that is expected to continue its operations and meet its obligations for the foreseeable future, rather than shutting down or selling off assets. This assumption matters to investors because it indicates stability and ongoing profitability, making the business a more reliable investment. Think of it as believing a restaurant will stay open and serve customers, rather than closing down suddenly.
material weaknesses financial
"except for the material weaknesses in the Company’s internal control over financial reporting related to"
Material weaknesses are significant flaws in a company’s systems for ensuring its financial reports are accurate and reliable. Like a broken lock on a safe, they increase the chance that financial statements contain big errors or omissions, which can mislead investors about performance and risk; discovering one often raises questions about management oversight, may lead to restated results, and can affect investor confidence and a company’s valuation.
internal control over financial reporting financial
"material weaknesses in the Company’s internal control over financial reporting related to"
Internal control over financial reporting is a company’s system of procedures and checks designed to make sure its financial statements are accurate and complete, like a set of guardrails and verification steps that catch mistakes or fraud before numbers are published. Investors care because strong controls make reported results more trustworthy, lower the risk of surprise restatements or regulatory problems, and give greater confidence when valuing the company or comparing it to peers.
reportable events regulatory
"and (ii) no “reportable events” (as defined in Item 304(a)(1)(v) of Regulation S-K and the related instructions), except for the material weaknesses"
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.
emerging growth company regulatory
"Emerging growth company"
An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.
independent registered public accounting firm financial
"approved the engagement of Carr, Riggs & Ingram, L.L.C. (“CRI”) as the Company’s 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.
FAQ
What did CDT (CDT Equity Inc.) announce about its auditor?
CDT Equity Inc. announced that its audit committee dismissed CBIZ CPAs P.C. and approved Carr, Riggs & Ingram, L.L.C. as its new independent registered public accounting firm, effective June 23, 2026, changing the firm responsible for auditing its consolidated financial statements.
Why is CDT’s prior going-concern paragraph important for investors?
CBIZ CPAs’ audit report for the year ended December 31, 2025 included an explanatory paragraph expressing substantial doubt about CDT Equity’s ability to continue as a going concern, signaling significant uncertainty about the company’s future financial viability and liquidity position.
Did CDT Equity Inc. report disagreements with its former auditor CBIZ CPAs?
The company states there were no disagreements with CBIZ CPAs on accounting principles, financial statement disclosures, or audit scope or procedures during the relevant period that would have been referenced in CBIZ’s report on CDT Equity’s 2025 consolidated financial statements.
What internal control weaknesses did CDT (CDT Equity Inc.) disclose?
CDT Equity disclosed material weaknesses in internal control over financial reporting, including limited segregation of duties, lack of formal review and approval processes, numerous recurring errors, inadequate control design, restatements of prior periods, and inconsistent review and documentation of related-party transactions.
Has CDT Equity consulted its new auditor CRI on accounting issues before engagement?
CDT Equity states that neither it nor anyone on its behalf consulted Carr, Riggs & Ingram before engagement on accounting principles, potential audit opinions, or matters involving disagreements or reportable events as defined in Item 304 of Regulation S-K.
How many times has CDT Equity changed auditors recently?
The company previously dismissed Marcum LLP on April 24, 2025, appointed CBIZ CPAs on April 25, 2025, and then, on June 23, 2026, dismissed CBIZ CPAs and engaged Carr, Riggs & Ingram as its independent registered public accounting firm.