Stardust Power Inc. (NASDAQ:SDST), a company specializing in the primary smelting and refining of nonferrous metals, announced on Thursday a change in its independent registered public accounting firm.
The board, following the recommendation of the audit committee, approved the dismissal of WithumSmith+Brown, PC (Withum) on Monday and the engagement of KNAV CPA LLP (KNAV) as the new auditor.
Withum had been associated with Stardust Power Inc. since 2020, including the period leading up to the company's business combination on July 8, 2024. The reports from Withum for fiscal years ending December 31, 2023, and 2022 were free from any adverse opinion or disclaimer and did not contain modifications related to audit scope or accounting principles, except for an emphasis on the company's ability to continue as a going concern.
Throughout the relationship, there were no reported disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedure that would have required Withum to reference the matter in their report. Additionally, there were no reportable events as described under SEC regulations.
The newly appointed firm, KNAV, had previously served as the auditor for Stardust Power Inc.'s target in the business combination. During the two most recent fiscal years and the subsequent interim period through September 17, 2024, Stardust Power Inc. did not consult KNAV on any accounting principles or auditing matters that would have influenced their decision-making process, except for the material weaknesses described in the company's definitive proxy statement dated May 22, 2024.
This transition in Stardust Power Inc.'s financial oversight comes as the company continues its operations in the nonferrous metals sector, with its headquarters in Greenwich, CT.
The company has not provided any additional comments on the reasons for the change in their accounting firm. The information for this article is based on a press release statement.
In other recent news, Stardust Power, a nonferrous metal smelting and refining specialist, has signed a $4.7 million engineering agreement with Primero USA, Inc. This deal is related to the development of Stardust Power's Muskogee Lithium facility in Oklahoma. As per the agreement, Primero USA will provide a variety of professional services, including engineering, design, and consultancy.
These services will support the procurement of major equipment, the engagement of third parties for construction, and the delivery of a Front End Loading-3 (FEL-3) report for the facility.
The completion of these services is anticipated in the first half of 2025. Stardust Power will make periodic payments upon execution of the agreement and upon reaching certain milestones detailed in the contract.
InvestingPro Insights
As Stardust Power Inc. (NASDAQ:SDST) undergoes significant changes in its financial oversight, investors may find it valuable to consider the company's recent performance and market position. According to InvestingPro data, Stardust Power Inc. has a market capitalization of $579.07 million. Despite a challenging market, the company has shown a significant return over the last week with a 9.99% price total return and an even stronger return over the last month at 26.85%. This could signal investor confidence or a response to broader market movements, as the stock price often moves in the opposite direction of the market, a trend worth noting for those looking to hedge against market downturns.
InvestingPro Tips highlight that Stardust Power Inc. trades with high price volatility, a factor that traders might exploit for short-term gains but could also increase the risk for long-term investors. Additionally, the company's lack of profitability over the past twelve months and weak gross profit margins are essential considerations for those conducting a thorough financial analysis. It's also worth noting that Stardust Power Inc. does not pay a dividend, which may influence the investment decisions of income-focused shareholders. For investors looking for more in-depth analysis, there are additional InvestingPro Tips available on the platform.
The current financial developments and InvestingPro data underscore the importance of staying informed about the company's performance and market trends. Investors interested in Stardust Power Inc. can access a comprehensive set of InvestingPro Tips at https://www.investing.com/pro/SDST to further inform their investment strategy.
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