Syntec Optics Dismisses Auditor, Discloses Internal Control Weaknesses

What Happened

• Syntec Optics Holdings, Inc. (OPTX) filed an 8-K reporting that its Audit Committee approved the dismissal of independent auditor CBIZ CPAs P.C., effective August 19, 2026. CBIZ’s audit report on the company’s consolidated financial statements for the year ended December 31, 2025 was unqualified (no adverse or disclaimer opinion, and no qualification for uncertainty, scope, or accounting principles).
• The company disclosed several material weaknesses in its internal control over financial reporting identified during the applicable period and discussed with CBIZ. Syntec authorized CBIZ to respond to inquiries from WithumSmith+Brown, PC, the company’s successor auditor.

Key Details

• Dismissal approved: August 19, 2026; former auditor: CBIZ CPAs P.C.
• Prior audit opinion: unqualified for fiscal year ended December 31, 2025.
• Material weaknesses disclosed include:
  • Lack of documented formal internal control processes, including review of journal entries and segregation of duties.
  • Inadequate reconciliation controls for accounts payable, accrued legal expenses, and provision for income taxes.
  • Insufficient controls for identifying/disclosing related-party transactions and evaluating non‑routine transactions (including financial instruments).
  • Deficient IT general controls (user access, change management), weak SOC‑1 review processes, and lacking cybersecurity‑related controls.
• Exhibit: CBIZ’s letter to the SEC dated August 25, 2026 was filed as an exhibit.

Why It Matters

• A change of auditors and the disclosure of material weaknesses are important signals for investors. The weaknesses mean Syntec currently has gaps that could lead to misstatements in its financial reports until they are remediated.
• Although CBIZ’s prior audit was unqualified and there were no reported disagreements, investors should watch for remediation plans, future auditor communications (Withum), and any impact on the timing or reliability of future financial filings.