ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) recently severed ties with KPMG LLP as it registered public accounting firm. The last full-year financial statements that KPMG audited for ZAIS were for the years 2014 and 2015. ZAIS has brought in PricewaterhouseCoopers (PwC) to become its auditor, thus replacing KPMG.
It was not immediately clear why ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) decided to dismiss KPMG as its public accountant. Equally unclear are the potential benefits that ZAIS hopes to achieve with PwC as its auditor that it could achieve with KPMG.
However, the management of ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) revealed in a regulatory filing that cutting ties with KPMG wasn’t predicated on any disagreement regarding how the auditor handled the company’s financial reports. Additionally, the management sought to bring to the attention of the regulator that the financial statements for 2014 and 2015 that KPMG audited didn’t contain any adverse declaimer by the firm that would trigger a disagreement between the auditor and the company.
Without disagreements as ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) claimed in its filings, it appears the company decided it was time to move after working with KPMG for some years. Perhaps it could be that working with PwC will cost less in terms of auditing expenses given that the company is currently in the process of cutting costs.
ZAIS Group Holdings, Inc. (NASDAQ:ZAIS) reported an improvement in EPS in 1Q2016 compared to 1Q2015. It posted EPS loss of $0.35, up from EPS loss of $0.38. Revenue in the latest quarter was $3.8 million.
Liquidity position ZAIS Group Holdings, Inc. (NASDAQ:ZAIS)
ZAIS finished 1Q2016 with cash and equivalents of $38.5 million, offset by debt of $1.3 million. The company can be seen in solid financial standing.
According to CEO, Michael F. Szymanski, the agenda going forward is to streamline expenses and put the company on a firm ground for long-term profitability in the future. The CEO also hinted at diversification efforts through capitalizing on investor interest in non-traditional credit facilities.