- KPMG LLP will not be re-appointed as Aptose Biosciences' auditor for the 2025 annual audit.
- Decision was made unilaterally by KPMG due to material weakness concerns.
- Aptose (TSX:APS) is actively seeking a new independent registered public accounting firm.
Aptose Biosciences (TSX:APS) has announced that KPMG LLP, its current independent auditor, will not stand for re-appointment for the company's 2025 annual audit, effective from April 15, 2025. Following this decision, KPMG will continue to review Aptose’s quarterly interim financial results through the second quarter of 2025.
The decision by KPMG was made without the consent of Aptose's management and without the involvement of its Board of Directors or Audit Committee. Notably, KPMG previously issued unqualified (clean) audit reports for Aptose's fiscal years 2024 and 2023.
A significant concern raised by KPMG relates to a material weakness in Aptose's internal controls over financial reporting, specifically in accounting for complex financial instruments like warrants. This issue was disclosed in the company's 2024 Form 10-K.
Aptose has initiated the process of appointing a new independent registered public accounting firm to address this gap in its financial oversight. The continuity of KPMG’s involvement through mid-2025 should provide some stability while the search for a new auditor proceeds.
Investors should be aware that despite the clean audit opinions for the past two years, the auditor’s decision not to seek re-appointment and the identified internal control weakness may signal underlying governance issues that warrant closer scrutiny.
