Business Context and Reporting Period
Company: Rein Therapeutics, Inc. (RNTX)
Filing Type: Form 8-K (Current Report)
Date of Report: April 16, 2025
Reporting Period: Immediate event notification regarding a change in independent registered public accounting firm.
Key Financial Metrics
This filing does not contain specific financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity figures. The document focuses exclusively on the transition of the external auditor.
Material Changes
- Resignation of Auditor: Marcum LLP resigned as the Company's independent registered public accounting firm, effective immediately on April 16, 2025.
- Engagement of Successor: CBIZ CPAs P.C. was engaged as the new independent registered public accounting firm, effective immediately on April 16, 2025, following Audit Committee approval.
- Background: CBIZ CPAs acquired the attest business of Marcum LLP on November 1, 2024.
- Audit Opinions: Marcum's reports for fiscal years 2024 and 2023 did not contain adverse opinions or disclaimers but included an explanatory paragraph indicating substantial doubt about the Company's ability to continue as a going concern.
- Disagreements: No disagreements were reported between the Company and Marcum regarding accounting principles, practices, or audit scope during the relevant periods.
Guidance, Risks, and Contingencies
Material Weaknesses in Internal Controls: The filing references material weaknesses previously disclosed in the 2024 and 2023 Annual Reports (Form 10-K):
- 2024 Weakness: Lack of sufficient accounting and supervisory personnel for segregation of duties; lack of evidence over account reconciliations; and inadequate procedures for timely preparation and review of financial statements.
- 2023 Weakness: Issues related to the accounting for the acquisition of Lung Therapeutics, Inc., including imprecise purchase price allocation reviews and lack of timely oversight over third-party specialists.
Consultations: The Company confirmed no consultations with CBIZ CPAs regarding accounting principles or audit opinions prior to their engagement.
Investor Verification Checklist
- Verify the status of the "substantial doubt about going concern" noted in the 2024 and 2023 audit reports.
- Review the Company's remediation plans for the material weaknesses in internal controls over financial reporting.
- Confirm the timeline for CBIZ CPAs to complete their initial audit procedures and issue any required opinions.
- Monitor future filings for any updates on the Company's liquidity position given the going concern warning.