FRMO Corp. Announces Change in Issuer's Independent Certifying Accounting Firm
MWN-AI** Summary
FRMO Corp. (OTC Pink: FRMO) has announced a significant change regarding its independent certifying accounting firm. Effective November 5, 2025, FRMO has terminated its relationship with Baker Tilly US, LLP, which previously served as its independent auditor. The company has engaged CBIZ CPAs P.C., a PCAOB-registered firm, to take over audit responsibilities for the fiscal year ending May 31, 2026.
The decision to switch auditors was made by FRMO’s Board of Directors and Audit Committee, and it was emphasized that this move was not due to any disagreements concerning accounting principles, financial disclosures, or auditing procedures between the company and Baker Tilly. For the fiscal years ending May 31, 2025, and 2024, Baker Tilly's reports on FRMO’s financial statements did not include any adverse opinions, disclaimers, or modifications related to uncertainties or scope, and there were no unresolved disagreements that would necessitate mentioning in the audit reports.
Notably, during the recent fiscal periods and the interim period leading up to the accounting firm change, neither FRMO nor its representatives consulted with CBIZ regarding accounting transactions, audit opinions, or other potential issues that could be pertinent to their financial reporting processes.
FRMO Corp. is engaged in the asset management sector, primarily generating revenues through consulting and advisory fees. The company highlights that this accounting firm change reflects their ongoing commitment to maintaining high standards in financial reporting and auditing.
For more information, stakeholders can visit FRMO’s website at www.frmocorp.com, where additional details and risk factors related to the company’s operations can be accessed. The press release also incorporates a Safe Harbor statement regarding forward-looking projections and inherent uncertainties.
MWN-AI** Analysis
FRMO Corp.'s recent announcement regarding its transition from Baker Tilly US, LLP to CBIZ CPAs P.C. as its independent certifying accountant is noteworthy for investors and analysts following the company. The change is set to take effect on November 5, 2025, and is a strategic decision endorsed by the Board of Directors and the Audit Committee. Importantly, the context of this transition is one of mutual agreement rather than conflict, which may inspire confidence among stakeholders.
Investors should note that Baker Tilly has issued clean reports regarding FRMO's financial statements over the past two fiscal years, indicating no material disagreements or issues that could adversely affect the company's integrity. This track record suggests that the transition will likely be smooth, as FRMO transitions to CBIZ, another PCAOB-registered firm that can provide a fresh perspective on the company’s financial reporting.
From a market perspective, such a change could be seen as a positive move for enhancing corporate governance and audit practices, potentially fostering greater investor confidence. CBIZ's expertise and reputation in the industry could provide additional assurance of transparency and compliance in FRMO’s financial reporting.
However, potential investors should remain vigilant about the inherent risks involved; any changes in accounting practices or challenges in maintaining audit quality can impact financial performance. Furthermore, as a company operating within the asset management sector, FRMO's performance is also tied to broader market conditions and economic factors.
In summary, while FRMO Corp.'s switch in accounting firms appears to be a sound strategic decision that aligns with best practices in corporate governance, investors should consider monitoring the ongoing financial results and market conditions that may impact the company's growth trajectory. Caution is advised as they navigate through this transition period.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
FRMO Corp. (the “Company” or “FRMO”) (OTC Pink: FRMO) today announced a change in its independent certifying accountant.
Effective November 5, 2025, FRMO has terminated its relationship with Baker Tilly US, LLP (“Baker Tilly”), the Company’s independent certifying accountant and auditor, and has engaged CBIZ CPAs P.C. (“CBIZ”), a PCAOB-registered firm, as its new independent certifying accountant and auditor to audit FRMO’s financial statements for the fiscal year ending May 31, 2026.
The decision to change auditors was approved by FRMO’s Board of Directors and Audit Committee and was not the result of any disagreement between FRMO and Baker Tilly on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.
During the fiscal years ended May 31, 2025 and 2024, Baker Tilly’s report on FRMO’s financial statements did not contain an adverse opinion or disclaimer of opinion, and was not modified as to uncertainty, audit scope, or accounting principles; and there were no disagreements with Baker Tilly on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the satisfaction of Baker Tilly, would have caused Baker Tilly to make reference to the subject matter of the disagreement in connection with its reports on FRMO’s consolidated financial statements for such years.
During the Company’s two most recent years ended May 31, 2025 and 2024, and during the subsequent interim period through November 5, 2025, neither the Company nor anyone on its behalf consulted with CBIZ regarding (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's consolidated financial statements, and neither a written report nor oral advice was provided to the Company that CBIZ concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issue, (ii) any matter that was either the subject of a disagreement, or (iii) any matters related to the Company’s internal controls.
About FRMO Corp.
FRMO Corp. invests in and receives revenues based upon consulting and advisory fee interests in the asset management sector.
For more information, visit our website at www.frmocorp.com .
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 – With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. Words like “believe,” “expect” and “anticipate” mean that these are our best estimates as of this writing, but that there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain our competitive advantages, the general economics of the financial industry, our ability to finance growth, our ability to identify and close acquisitions on terms favorable to the Company, and a sustainable market.
Further information on our risk factors is contained in our quarterly and annual reports as filed on our website www.frmocorp.com and on www.otcmarkets.com/stock/FRMO/filings .
View source version on businesswire.com: https://www.businesswire.com/news/home/20251218134649/en/
Thérèse Byars
Corporate Secretary
Email: tbyars@frmocorp.com
Telephone: 646-495-7337
www.frmocorp.com
FAQ**
What strategic reasons led to FRMO Corporation FRMO's decision to change from Baker Tilly to CBIZ as its independent certifying accountant, and how might this impact future financial reporting?
Can FRMO Corporation FRMO elaborate on any anticipated benefits or challenges associated with engaging CBIZ, a PCAOB-registered firm, for the fiscal year ending May 31, 2026?
How does FRMO Corporation FRMO plan to ensure a smooth transition to CBIZ while maintaining compliance with regulatory standards and internal controls during the auditor change?
What factors does FRMO Corporation FRMO consider critical in maintaining competitive advantages within the asset management sector following this change in auditor?
**MWN-AI FAQ is based on asking OpenAI questions about FRMO Corporation (OTC: FRMO).
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