Blue Biofuels, Inc. Announces Change in Independent Auditor and Financial Reporting Updates
Key Highlights for Investors
- Blue Biofuels, Inc. (OTCQB: BIOF) filed a Current Report on Form 8-K with the SEC dated June 8, 2026.
- Change in Independent Registered Public Accounting Firm: The company has replaced its auditor, Assure CPA, LLC, with Sadler Gibb & Associates, LLC for the fiscal year ending 2026.
- No Disagreements or Reportable Events: There were no disagreements with the outgoing auditor, and no ‘reportable events’ as defined by SEC rules occurred.
- Going Concern Warning: The outgoing auditor, Assure CPA, included a “substantial doubt about the Company’s ability to continue as a going concern” in their reports for both 2024 and 2025.
- Assure CPA’s Consent: The outgoing auditor has formally agreed with the disclosures made by Blue Biofuels, as evidenced by their letter filed as Exhibit 16.1.
- No Consultation with New Auditor Prior to Appointment: The company did not consult with Sadler Gibb & Associates regarding any significant accounting or auditing matters prior to their engagement.
Details and Analysis
Blue Biofuels, Inc. (formerly known as Alliance Bioenergy Plus, Inc. and Alliance Media Group Holdings, Inc.) has filed an 8-K with the SEC to announce a significant change in its independent registered public accounting firm. This kind of change is closely watched by investors as it can indicate shifts in financial reporting, company strategy, or underlying financial health.
Change in Auditor
Effective as of June 8, 2026, Blue Biofuels dismissed Assure CPA, LLC as its independent registered public accounting firm. The company has engaged Sadler Gibb & Associates, LLC to audit its financial statements for the fiscal year ending 2026.
Assure CPA’s Audit Opinion and Going Concern Warning
Assure CPA’s reports on the company’s financial statements for the years ended 2024 and 2025 did not contain any adverse opinion, disclaimer of opinion, or modifications as to uncertainty, audit scope, or accounting principles—except for an important explanatory paragraph. This paragraph raised substantial doubt about Blue Biofuels’ ability to continue as a going concern. This type of warning is a red flag to investors, as it means the auditor believes there is significant risk that the company may not be able to meet its obligations as they come due.
Shareholders should be aware that a “going concern” warning can have material effects on stock price and investor confidence. It can affect the company’s ability to raise capital, secure credit, or execute on its business plan. These warnings often precede major corporate actions such as restructuring, asset sales, or even bankruptcy filings in some cases.
No Disagreements or Reportable Events
The company explicitly stated that, during the fiscal years 2024 and 2025 and up to June 3, 2026, there were no disagreements with Assure CPA on any matters related to accounting principles, financial disclosures, or audit scope that would have required additional reference in the auditor’s reports. There were also no “reportable events” as defined by SEC regulations.
Outgoing Auditor’s Consent
Blue Biofuels has provided Assure CPA with the disclosures made in the 8-K and requested that Assure CPA furnish a letter to the SEC stating whether they agree with the company’s statements. Assure CPA’s letter, dated June 8, 2026, affirms their agreement with the company’s disclosures and is available as Exhibit 16.1.
New Auditor Engagement and No Prior Consultations
The company has engaged Sadler Gibb & Associates, LLC as its new independent auditor for the 2026 fiscal year. Notably, Blue Biofuels and its representatives did not consult with Sadler Gibb on any significant auditing or accounting matters, nor did they receive any written or oral advice from Sadler Gibb prior to their engagement that would have influenced any accounting, auditing, or financial reporting issue.
Other Regulatory Disclosures
- The company’s common stock is traded on the OTCQB market under the symbol BIOF.
- Blue Biofuels is not an emerging growth company as defined by SEC rules.
- No written communications, soliciting material, or pre-commencement tender offers are associated with this filing.
Potential Shareholder Impact
This 8-K filing contains information that may be price-sensitive for shareholders:
- Auditor Change: A change in independent auditor can sometimes indicate disagreements, financial stress, or a strategic shift. While Blue Biofuels states there were no such disagreements, investors often scrutinize such changes, especially when paired with a “going concern” warning.
- Going Concern Warning: The company’s financial health is under significant uncertainty according to its prior auditor. This warning can restrict the company’s access to capital markets and may affect the stock price negatively.
- No Negative Comment from Outgoing Auditor: The formal agreement from Assure CPA may help reduce speculation of auditor disagreement but does not eliminate the risks associated with the going concern warning.
- No Advance Consultation with New Auditor: The company did not seek prior advice from Sadler Gibb, which is standard, but always worth noting in the context of a going concern issue.
Conclusion
In summary, the combination of a change in auditor and a repeated “going concern” warning should be taken seriously by investors. While there is no evidence of disputes or reportable events, the company’s future financial stability is clearly in question, and further updates or developments should be closely monitored. Shareholders may see increased volatility or negative sentiment on this news.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial professionals before making any investment decisions. The author and publisher assume no responsibility for any actions taken based on this article.
