Business services company PAID Inc has engaged a new independent registered public accounting firm, dbbmckennon, following the resignation of its previous accountant, KMJ Corbin & Company LLP. The change occurred on June 14, 2024, as disclosed in a recent SEC filing.
KMJ's departure is a result of the firm's partners and staff joining Crowe LLP on May 20, 2024. The reports from KMJ on PAID Inc's financial statements for the fiscal years ending December 31, 2023, and December 31, 2022, were free of any adverse opinion or disclaimer and did not contain qualifications or modifications regarding audit scope or accounting principles.
During the fiscal years mentioned and the subsequent interim period up until the resignation, there were no reported disagreements between PAID Inc and KMJ concerning accounting principles, financial statement disclosure, or auditing scope or procedure. However, PAID Inc did report material weaknesses in its internal control over financial reporting due to inadequate entity level and activity level controls.
The company, headquartered in Marlborough, Massachusetts, has provided KMJ with a copy of the 8-K report prior to filing it with the SEC, as required by regulation. KMJ has also submitted a letter to the SEC, filed as Exhibit 16.1, confirming their agreement with the statements made by PAID Inc in the 8-K report.
Before engaging dbbmckennon, PAID Inc had not consulted the new firm for any advice on accounting principles or auditing matters. The company's decision to appoint dbbmckennon was made independently without prior consultation related to accounting or financial reporting issues.
InvestingPro Insights
In light of PAID Inc's recent changes in their accounting firm, a deeper look into the company's financial health and market performance may offer additional context for investors. According to InvestingPro data, PAID Inc holds a market capitalization of $13.22 million, with a P/E ratio that stands at 13.9, adjusting to 13.61 for the last twelve months as of Q1 2024. This relatively low P/E ratio, in comparison to the company's near-term earnings growth, suggests that the stock could be undervalued.
InvestingPro Tips highlight that PAID Inc maintains a stronger liquidity position, holding more cash than debt, with liquid assets exceeding short-term obligations. Moreover, the company is trading at a high EBITDA valuation multiple, having achieved an impressive EBITDA growth of 528.22% in the last twelve months as of Q1 2024. These factors, combined with the fact that PAID Inc is profitable over the last twelve months and is trading near its 52-week high, offer a potentially optimistic outlook for the company's financial stability and growth prospects.
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