The Audit Committee's decision to appoint Deloitte was made after careful consideration, and it is expected to enhance the company's financial reporting and auditing processes. During the fiscal years ended December 31, 2025, and 2024, the company did not consult with Deloitte regarding any accounting principles or audit opinions, indicating a clean transition without prior conflicts or disagreements.
The audit reports from Grant Thornton for the past two fiscal years did not contain any adverse opinions or disclaimers, suggesting that the company maintained a solid financial standing during that period. However, there was a previously disclosed material weakness in the company's internal control over financial reporting, which was remediated in 2025. This transition to Deloitte is seen as a strategic move to strengthen governance controls and enhance operational execution moving forward.
The company has authorized Grant Thornton to respond fully to inquiries from Deloitte concerning the subject matter of this reportable event, ensuring a smooth transition between auditors. The change in auditors is expected to have a small positive effect on the stock price as it reflects the company's commitment to maintaining high standards in financial reporting and governance.
