Immersion (NASDAQ:IMMR) Corporation (NASDAQ:IMMR), a developer of touch feedback technology, has announced a change in its independent accounting firm, as detailed in a recent SEC filing. On Monday, the company's Audit Committee was informed that Frank, Rimerman + Co. LLP had resigned as the company’s independent registered public accounting firm. Subsequently, BDO USA, LLP has been appointed as the new auditor.
The resignation of Frank, Rimerman took effect on Monday, and BDO's appointment as the new independent registered public accounting firm is effective as of Tuesday. According to the filing, Frank, Rimerman did not issue any reports on Immersion’s financial statements that contained an adverse opinion or any disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles.
During the tenure of Frank, Rimerman, specifically from the start of this month until their resignation, there were no disagreements on matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure that, if unresolved, would have warranted mention in their reports on the financial statements. Furthermore, there were no reportable events as defined by SEC regulations.
Immersion Corp has provided Frank, Rimerman with the disclosures made in the Form 8-K filing and has received a letter from Frank, Rimerman to the SEC, agreeing with the statements made in the filing. This letter is included as an exhibit in the 8-K filing.
The new firm, BDO, has not been consulted by Immersion Corp or anyone on its behalf for any accounting principles or transactions, nor for any auditing matters or reportable events during the fiscal years ended December 31, 2023, and 2022, as well as the subsequent interim period through Tuesday.
In other recent news, Immersion Corporation has completed a significant asset acquisition from Barnes & Noble Education, Inc., according to a recent SEC Form 8-K filing. This strategic move is a notable expansion of Immersion's business interests, diversifying into the education sector. The transaction involved a rights offering and a private investment in public equity transaction, with Immersion's subsidiary, Toro 18 Holdings, LLC, participating as a significant investor. In addition, Toro 18 Holdings purchased 200,670,135 shares of BNED Common Stock and was reimbursed for related legal and other expenses.
Barnes & Noble Education reported preliminary unaudited financial results for the fiscal year ending April 27, 2024, showing a slight increase in revenue and a reduction in net losses. The company's consolidated GAAP revenue rose to approximately $1,567 million, up from $1,543 million in the previous year. Immersion Corporation retained its Buy rating from BWS Financial, following stronger-than-expected fourth quarter results driven by increased automotive and video game revenue.
InvestingPro Insights
In light of the recent change in Immersion Corporation's (NASDAQ:IMMR) independent accounting firm, investors may be curious about the company's financial health and market performance. InvestingPro data indicates that Immersion Corporation holds a market cap of $391.34 million, with an attractive P/E ratio of 8.85, suggesting that the stock is trading at a low price relative to near-term earnings growth. Additionally, the company has experienced significant revenue growth of 84.93% over the last twelve months as of Q1 2024, highlighting a robust upward trend in its financial performance.
Immersion Corporation also appears to be in a strong liquidity position, as InvestingPro Tips reveal that the company holds more cash than debt on its balance sheet and liquid assets exceed short-term obligations. Moreover, analysts predict that the company will be profitable this year, which is corroborated by a profitable performance over the last twelve months. These factors may provide reassurance to investors amidst the transition to a new auditor.
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