Alaunos Therapeutics, Inc. (NASDAQ:TCRT), a company specializing in pharmaceutical preparations, has announced a change in its independent registered public accounting firm. On Wednesday, the company's Audit Committee approved the dismissal of RSM US LLP ("RSM") and the appointment of Cherry Bekaert LLP as its new auditor.
The reports from RSM for the fiscal years ending December 31, 2023, and 2022, did not contain any adverse opinion or disclaimer of opinion, and were not qualified or modified regarding uncertainty, audit scope, or accounting principles. However, the reports included explanatory paragraphs indicating substantial doubt about the company's ability to continue as a going concern.
According to the filing, there were no disagreements or reportable events between Alaunos Therapeutics and RSM during the fiscal years mentioned or in the subsequent interim period up to the date of the accounting firm's dismissal. The company has fully authorized RSM to respond to inquiries from the successor accounting firm.
The engagement of Cherry Bekaert LLP took place on the same day as the dismissal of RSM. Prior to this appointment, Alaunos Therapeutics had not consulted Cherry Bekaert LLP on any accounting principles or transactions, nor had there been any disagreements or reportable events with them.
The company has provided RSM with the disclosures regarding the change in accountants and requested that RSM furnish a letter to the SEC, which has been filed as Exhibit 16.1 with the report. This move comes as Alaunos Therapeutics continues to navigate its financial reporting obligations.
InvestingPro Insights
Alaunos Therapeutics, Inc. (NASDAQ:TCRT) is currently in a precarious financial position, as reflected by recent data. With a market capitalization of just $11.21 million, the company's financial metrics suggest significant challenges. The company's revenue has seen a drastic decline over the last twelve months as of Q1 2024, with a decrease of 99.79%. This tumble in revenue is accompanied by a gross profit margin that is deeply negative, at -164,916.67%, indicating that the company is not only generating insufficient revenue but also losing money on its operations.
InvestingPro Tips highlight several concerns for investors. The company holds more cash than debt, which could provide some financial flexibility, but this is overshadowed by the fact that it is quickly burning through its cash reserves. Moreover, analysts do not anticipate the company will be profitable this year, and the stock has been in a downward trend, falling significantly over the last week, month, and year.
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