Altisource Asset Management Corporation (NYSE: AAMC), a real estate-focused asset management company, has announced a change in its independent registered public accounting firm. On August 15, 2024, the Audit Committee of the company's Board of Directors decided to part ways with Ernst & Young LLP (EY) and appointed PKF O’Connor Davies, LLP (PKF) as its new auditor.
The decision to switch to PKF was influenced by budgetary considerations and the firm's compatibility with the company's size relative to PKF's other clients. According to the company's statement, there were no disagreements with EY regarding accounting principles or practices, financial statement disclosure, or auditing scope and procedures during the audits of the fiscal years ended December 31, 2022, and 2023, or in the subsequent interim period through August 15, 2024.
EY's audit reports for those fiscal years did not contain any adverse opinions or disclaimers and were not qualified or modified regarding uncertainty, audit scope, or accounting principles. In line with regulatory requirements, EY has provided a letter to the Securities and Exchange Commission, dated August 21, 2024, affirming their agreement with the company's statements regarding the change of auditors.
This transition comes as Altisource aims to align its auditing services with its operational scale and financial strategy.
The information provided in this article is based on a press release statement from Altisource Asset Management Corporation.
In other recent news, Altisource Asset Management Corporation has been notified by the NYSE American of its non-compliance with the exchange's continued listing standards, related to stockholders' equity levels and losses over the past five fiscal years.
The company has been asked to submit a compliance plan by June 30, 2024, with steps to regain compliance by December 1, 2024. Despite this, Altisource's common stock will remain listed but will bear the ".BC" designation indicating its below compliance status.
In other developments, Altisource is making significant strides in the commercialization of its Alpha Control System. This project, developed in partnership with UK-based Seabird Limited, is expected to significantly boost in-city driving range by 16-24% for delivery trucks. A demonstrator vehicle has been procured for testing the system, and an initial commercial presentation is being developed.
As part of its strategy, Altisource is focusing on controlling expenditures to realize the potential of its assets, including the Alpha Control System, aiming to reduce operating costs below $2.5 million annually. These are recent developments within the company.
InvestingPro Insights
As Altisource Asset Management Corporation (AAMC) navigates through a pivotal change in its auditing partnership, it's crucial to consider the company's financial health and stock performance for a comprehensive understanding. InvestingPro data reveals a challenging financial landscape for AAMC, with a significant revenue decline over the last twelve months as of Q2 2024, marked by a -107.17% decrease. This is coupled with a gross profit margin that appears exceptionally high at 536.68%, which may raise questions about the underlying accounting practices given the negative revenue growth.
The stock's trajectory also reflects a tumultuous period, with a -55.35% one-year price total return as of the same period, underscoring the stock's high volatility, a characteristic noted in one of the InvestingPro Tips. Moreover, short-term obligations surpassing liquid assets suggest a potential liquidity crunch, a factor that investors should monitor closely. With an upcoming earnings date on August 20, 2024, stakeholders may be keen on assessing the company's turnaround strategies and financial adjustments post-auditor change.
For a deeper dive into AAMC's financials and stock performance, including additional InvestingPro Tips, visit https://www.investing.com/pro/AAMC. There you will find a comprehensive list of tips to guide your investment decisions, with 9 more tips available that could provide further insights into AAMC's market position and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.