Q/C Technologies switches auditors, going concern noted
Rhea-AI Filing Summary
Q/C Technologies, Inc. reported that its Audit Committee dismissed Stephano Slack LLC as its independent registered public accounting firm on March 9, 2026, and appointed Grassi & Co., CPAs, P.C. as the new auditor for the year ended December 31, 2025.
The prior auditor’s reports for 2023 and 2024 contained a going concern paragraph noting net loss and negative operating cash flows for 2024 that raised substantial doubt about the Company’s ability to continue as a going concern, with no related adjustments recorded. The Company states there were no disagreements or reportable events with Stephano Slack, and it has obtained a letter from the former auditor addressed to the SEC agreeing with these disclosures.
Positive
- None.
Negative
- Auditor’s going concern paragraph highlights financial strain – Stephano Slack’s reports for 2023 and 2024 cite net loss and negative operating cash flows for 2024 that raise substantial doubt about Q/C Technologies’ ability to continue as a going concern, with no related adjustments recorded.
Insights
Auditor change disclosed alongside reiterated going concern doubts.
Q/C Technologies replaced Stephano Slack LLC with Grassi & Co. as its independent auditor, with the change approved by the Audit Committee on March 9, 2026. The company reports no disagreements or reportable events with the outgoing firm.
However, Stephano Slack’s reports for the years ended December 31, 2023 and December 31, 2024 included a going concern paragraph citing a net loss and negative operating cash flows in 2024 that raise substantial doubt about the company’s ability to continue as a going concern. The financial statements also do not include adjustments that might result from this uncertainty.
The company notes that neither it nor its representatives consulted Grassi on accounting principles, specific transactions, or anticipated audit opinions before the engagement, and obtained a letter from Stephano Slack dated March 11, 2026 confirming agreement with the described circumstances. The key financial risk factor remains the previously disclosed going concern uncertainty.
8-K Event Classification
FAQ
What auditor change did Q/C Technologies (QCLS) announce?
Why did the prior auditor include a going concern paragraph for QCLS?
Were there any disagreements between Q/C Technologies and Stephano Slack?
Did Q/C Technologies consult Grassi before appointing them as auditor?
What document did Stephano Slack provide to the SEC regarding QCLS?
What key financial risk does Q/C Technologies highlight in this disclosure?
AI-generated analysis. How Rhea-AI works. Not financial advice.