8-K: PharmaCyte Biotech Changes Auditors Amidst Internal Control Concerns

PharmaCyte Biotech, Inc. has dismissed its independent registered public accounting firm, CBIZ CPAs P.C., and engaged Grassi & Co., CPAs, P.C. as its new auditor.

Summary

• PharmaCyte Biotech, Inc. (the Company) dismissed CBIZ CPAs P.C. as its independent registered public accounting firm on October 14, 2026.
• The dismissal was effective on October 14, 2026.
• The Company's previous auditor's reports for the fiscal years ended April 30, 2026, and April 30, 2025, did not contain adverse opinions or disclaimers.
• However, during the fiscal years ended April 30, 2026, and April 30, 2025, and the interim period through October 14, 2026, material weaknesses in internal control over financial reporting were disclosed.
• These material weaknesses related to insufficient segregation of duties for the Chief Financial Officer and insufficient management review controls.
• The Company has engaged Grassi & Co., CPAs, P.C. (Grassi) as its new independent registered public accounting firm, effective October 14, 2026.
• Grassi will audit the Company's consolidated financial statements for the fiscal year ending April 30, 2027, and review interim financial statements starting with the quarter ending October 31, 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative development due to the dismissal of the previous auditor, especially given the mention of material weaknesses in internal controls, which raises concerns about financial reporting reliability.

Positives

• The reports from the dismissed auditor, CBIZ CPAs, did not contain adverse opinions or disclaimers of opinion.
• The reports were not qualified or modified regarding uncertainty, audit scope, or accounting principles.

Negatives

• The Company dismissed its independent registered public accounting firm, CBIZ CPAs P.C., on October 14, 2026.
• Material weaknesses in internal control over financial reporting were disclosed for the fiscal years ended April 30, 2026, and April 30, 2025.
• These weaknesses specifically involved insufficient segregation of duties for the Chief Financial Officer and insufficient management review controls.

Risks

• The material weaknesses in internal control over financial reporting could lead to misstatements in financial reporting.
• The change in auditors, especially following disclosures of internal control weaknesses, may lead to increased scrutiny from investors and regulators.
• Potential for unforeseen issues arising from the transition to a new auditing firm.

Future Outlook

The company has engaged a new auditor, Grassi & Co., CPAs, P.C., to audit its consolidated financial statements for the fiscal year ending April 30, 2027, and to review interim financial statements commencing with the fiscal quarter ending October 31, 2026.

Management Comments

• The Company has authorized CBIZ CPAs to respond fully to the inquiries of Grassi concerning the material weaknesses.
• The Company has provided CBIZ CPAs with a copy of the disclosures made in this Current Report on Form 8-K prior to the filing hereof with the SEC and has requested that CBIZ CPAs furnish the Company with a letter addressed to the SEC stating whether it agrees with the statements made by the Company in response to Item 304(a) of Regulation S-K and, if not, stating the respects in which it does not agree.

Industry Context

StockSavvy.ai notes that auditor changes, particularly when accompanied by disclosures of material weaknesses in internal controls, can be a signal for increased investor caution. This is a common event in the life cycle of companies, especially those undergoing growth or restructuring, but it warrants close monitoring of the new auditor's findings.

Corporate Governance

Stakeholder Impact

• Shareholders may experience increased uncertainty regarding the reliability of past and future financial reporting due to the auditor change and disclosed material weaknesses.
• Investors may require more detailed information and assurances regarding internal controls and financial accuracy from the new auditor.
• Creditors and other financial stakeholders may scrutinize financial statements more closely.

Next Steps

• Grassi & Co., CPAs, P.C. will commence auditing the Company's consolidated financial statements for the fiscal year ending April 30, 2027.
• Grassi & Co., CPAs, P.C. will review the Company's interim financial statements commencing with the fiscal quarter ending October 31, 2026.
• The Company will receive a letter from CBIZ CPAs P.C. regarding its agreement with the statements made in the Form 8-K.

Key Dates

Recommendation

The dismissal of an auditor, especially when linked to material weaknesses in internal controls, introduces uncertainty. While the company is engaging a new auditor, the immediate impact is a need for caution. A 'hold' recommendation reflects the wait-and-see approach until the new auditor's findings and the company's remediation efforts become clearer.

Keywords

Auditor Change, Internal Controls, Financial Reporting, Audit Committee, Material Weakness, Accounting Firm