Aptose Announces Auditor Not Standing for Re-Appointment
Aptose Biosciences (TSX:APS) announced that KPMG LLP, its current independent registered public accounting firm, will not stand for re-appointment for the Company's 2025 annual audit, effective April 15, 2025. KPMG will continue reviewing quarterly interim financial results through Q2 2025.
KPMG made this decision without seeking Aptose's consent, and neither the Board of Directors nor the Audit Committee participated in this decision. KPMG previously issued unqualified reports for fiscal years 2024 and 2023.
Notably, KPMG communicated concerns regarding a material weakness in internal control over financial reporting, specifically related to accounting for complex financial instruments (warrants) as disclosed in the Company's 2024 Form 10-K. Aptose has initiated the process to appoint a new independent registered public accounting firm.
Aptose Biosciences (TSX:APS) ha annunciato che KPMG LLP, la sua attuale società di revisione contabile indipendente registrata, non si ricandiderà per l'incarico di revisione annuale del 2025, a partire dal 15 aprile 2025. KPMG continuerà a esaminare i risultati finanziari trimestrali intermedi fino al secondo trimestre del 2025.
KPMG ha preso questa decisione senza richiedere il consenso di Aptose, e né il Consiglio di Amministrazione né il Comitato per la Revisione hanno partecipato a questa decisione. KPMG aveva precedentemente emesso relazioni senza rilievi per gli esercizi fiscali 2024 e 2023.
In particolare, KPMG ha segnalato preoccupazioni riguardo a una debolezza significativa nel controllo interno sulla rendicontazione finanziaria, specificamente relativa alla contabilizzazione di strumenti finanziari complessi (warrant), come indicato nel Modulo 10-K 2024 della Società. Aptose ha avviato il processo per nominare una nuova società di revisione contabile indipendente registrata.
Aptose Biosciences (TSX:APS) anunció que KPMG LLP, su actual firma independiente de auditoría pública registrada, no se presentará para la reelección para la auditoría anual de la Compañía de 2025, con efecto a partir del 15 de abril de 2025. KPMG continuará revisando los resultados financieros trimestrales interinos hasta el segundo trimestre de 2025.
KPMG tomó esta decisión sin solicitar el consentimiento de Aptose, y ni la Junta Directiva ni el Comité de Auditoría participaron en esta decisión. KPMG había emitido previamente informes sin salvedades para los ejercicios fiscales 2024 y 2023.
Es importante destacar que KPMG comunicó preocupaciones sobre una debilidad material en el control interno sobre la información financiera, específicamente relacionada con la contabilización de instrumentos financieros complejos (warrants), como se reveló en el Formulario 10-K 2024 de la Compañía. Aptose ha iniciado el proceso para nombrar una nueva firma independiente de auditoría pública registrada.
Aptose Biosciences (TSX:APS)는 현재 독립 등록 공인 회계법인인 KPMG LLP가 2025년 4월 15일부터 효력이 발생하는 회사의 2025년 연례 감사 재선임에 응하지 않을 것이라고 발표했습니다. KPMG는 2025년 2분기까지 분기별 중간 재무 결과 검토를 계속할 예정입니다.
KPMG는 Aptose의 동의 없이 이 결정을 내렸으며, 이사회나 감사위원회도 이 결정에 관여하지 않았습니다. KPMG는 이전에 2024년 및 2023년 회계연도에 대해 무자격 보고서를 발행한 바 있습니다.
특히 KPMG는 회사의 2024년 10-K 보고서에 공시된 복잡한 금융상품(워런트) 회계 처리와 관련하여 재무 보고 내부 통제에서 중대한 약점에 대한 우려를 표명했습니다. Aptose는 새로운 독립 등록 공인 회계법인 선임 절차를 시작했습니다.
Aptose Biosciences (TSX:APS) a annoncé que KPMG LLP, son cabinet d'audit indépendant enregistré actuel, ne se représentera pas pour la réélection de l'audit annuel de la Société en 2025, à compter du 15 avril 2025. KPMG continuera d'examiner les résultats financiers trimestriels intermédiaires jusqu'au deuxième trimestre 2025.
KPMG a pris cette décision sans solliciter le consentement d'Aptose, et ni le conseil d'administration ni le comité d'audit n'ont participé à cette décision. KPMG avait précédemment émis des rapports sans réserve pour les exercices fiscaux 2024 et 2023.
Notamment, KPMG a exprimé des préoccupations concernant une faiblesse importante du contrôle interne sur le reporting financier, spécifiquement liée à la comptabilisation d'instruments financiers complexes (warrants), comme indiqué dans le formulaire 10-K 2024 de la Société. Aptose a entamé le processus de nomination d'un nouveau cabinet d'audit indépendant enregistré.
Aptose Biosciences (TSX:APS) gab bekannt, dass KPMG LLP, die derzeitige unabhängige eingetragene Wirtschaftsprüfungsgesellschaft, für die Wiederernennung zur Jahresabschlussprüfung 2025 des Unternehmens, wirksam ab dem 15. April 2025, nicht zur Verfügung stehen wird. KPMG wird weiterhin die quartalsweisen Zwischenfinanzergebnisse bis zum zweiten Quartal 2025 prüfen.
KPMG traf diese Entscheidung ohne Zustimmung von Aptose, und weder der Vorstand noch der Prüfungsausschuss waren an dieser Entscheidung beteiligt. KPMG hatte zuvor uneingeschränkte Prüfungsberichte für die Geschäftsjahre 2024 und 2023 veröffentlicht.
Bemerkenswert ist, dass KPMG Bedenken hinsichtlich einer wesentlichen Schwäche der internen Kontrolle über die Finanzberichterstattung äußerte, insbesondere im Zusammenhang mit der Bilanzierung komplexer Finanzinstrumente (Warrants), wie im 2024er Form 10-K des Unternehmens offengelegt. Aptose hat den Prozess zur Ernennung einer neuen unabhängigen eingetragenen Wirtschaftsprüfungsgesellschaft eingeleitet.
- KPMG issued unqualified (clean) audit reports for 2023-2024 fiscal years
- Material weakness identified in internal controls over financial reporting for complex instruments
- Unexpected auditor departure without company consent
- Need to find new auditor creates uncertainty and potential delays
Insights
KPMG's unilateral departure amid internal control weakness in warrant accounting raises governance concerns despite clean audit opinions.
The announcement that KPMG will not stand for re-appointment as Aptose's independent auditor warrants investor attention. Particularly concerning is that this decision was made unilaterally by KPMG without seeking the company's consent, suggesting the auditor-client relationship deteriorated for reasons not fully disclosed.
The disclosed material weakness in internal controls related to accounting for complex financial instruments (specifically warrants) is significant. Material weaknesses indicate substantial deficiencies in a company's ability to prevent or detect material misstatements in financial statements, potentially undermining reliability of reported figures.
For a clinical-stage biotech company like Aptose that likely uses warrants and similar instruments for capital raising, proper accounting for these instruments is crucial for financial statement integrity. The specific nature of this weakness suggests challenges in Aptose's financial reporting infrastructure.
Several mitigating factors exist: KPMG issued unqualified (clean) audit opinions for fiscal years 2023 and 2024, indicating the financial statements were ultimately considered reliable despite control deficiencies. Additionally, KPMG will continue reviewing quarterly results through Q2 2025, providing continuity during transition.
The absence of "disagreements" on accounting principles between Aptose and KPMG is somewhat reassuring. However, the auditor's unilateral decision not to continue the relationship remains a corporate governance red flag that warrants close monitoring as the company searches for a successor firm.
SAN DIEGO and TORONTO, April 23, 2025 (GLOBE NEWSWIRE) -- Aptose Biosciences Inc. (“Aptose” or the “Company”) (TSX:APS), a clinical-stage precision oncology company developing a tuspetinib (TUS) based triple drug frontline therapy to treat patients with newly diagnosed acute myeloid leukemia (AML), announces that effective on April 15, 2025, KPMG LLP, the current independent registered public accounting firm of the Company (the “KPMG”), informed the Company that it will not stand for re-appointment for the Company’s 2025 annual audit. The Company anticipates that KPMG will continue to review its quarterly interim financial results through the first two fiscal quarters of 2025. The Company has initiated a process to appoint a new independent registered public accounting firm.
KPMG did not seek the Company’s consent to its decision to not stand for re-appointment as the Company’s independent registered public accounting firm. As a result, neither the Company’s Board of Directors nor the Audit Committee of the Company’s Board of Directors participated in KPMG’s decision.
KPMG issued unqualified reports on the Company’s consolidated financial statements for the fiscal years ended December 31, 2024 and 2023. The Company is a “smaller reporting company”, so KPMG was not required to prepare reports on the effectiveness of the Company’s internal control over financial reporting for the years ended December 31, 2024 and 2023.
During the Company’s fiscal years ended December 31, 2024 and 2023, and the subsequent interim period through April 15, 2025, there were no: (1) “disagreements” between the Company and KPMG within the meaning of Item 304(a)(1)(iv) of Regulation S-K on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements if not resolved to their satisfaction would have caused them to make reference in connection with their opinion to the subject matter of the disagreement, or (2) “reportable events” within the meaning of Item 304(a)(1)(v) of Regulation S-K, except that KPMG communicated to the Company its views regarding the material weakness in its internal control over financial reporting as disclosed in Part II, Item 9A of the Company’s Form 10-K for the fiscal year ended December 31, 2024 pertaining to its accounting for complex financial instruments, specifically with regards to warrants. The Company has authorized KPMG to respond fully to the inquiries of the successor independent registered public accounting firm, once one is engaged.
The filings required pursuant to Canadian and United States securities laws are publicly available at www.sedarplus.com and www.sec.gov.
About Aptose
Aptose Biosciences is a clinical-stage biotechnology company committed to developing precision medicines addressing unmet medical needs in oncology, with an initial focus on hematology. The Company's small molecule cancer therapeutics pipeline includes products designed to provide single agent efficacy and to enhance the efficacy of other anti-cancer therapies and regimens without overlapping toxicities. The Company’s lead clinical-stage compound tuspetinib (TUS), is an oral kinase inhibitor that has demonstrated activity as a monotherapy and in combination therapy in patients with relapsed or refractory acute myeloid leukemia (AML) and is being developed as a frontline triplet therapy in newly diagnosed AML. For more information, please visit www.aptose.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Canadian and U.S. securities laws, including, but not limited to, statements regarding the Company’s intentions to retain a new auditor and make the necessary filings and statements relating to the Company’s plans, objectives, expectations and intentions and other statements including words such as “continue”, “expect”, “intend”, “will”, “hope” “should”, “would”, “may”, “potential” and other similar expressions. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by us, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements described in this press release. Such factors could include risks detailed from time-to-time in our ongoing current reports, quarterly filings, annual information forms, annual reports and annual filings with Canadian securities regulators and the United States Securities and Exchange Commission.
Should one or more of these risks or uncertainties materialize, or should the assumptions set out in the section entitled "Risk Factors" in our filings with Canadian securities regulators and the United States Securities and Exchange Commission underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this press release and we do not intend, and do not assume any obligation, to update these forward-looking statements, except as required by law. We cannot assure you that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.
For further information, please contact:
Aptose Biosciences Inc.
Susan Pietropaolo
Corporate Communications & Investor Relations
201-923-2049
spietropaolo@aptose.com
FAQ
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