{"url_path":"/sec/bafn/8-k/2026-07-15/item-4-02","section_key":"item-4-02","section_title":"Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-07-15","source_url":"https://www.sec.gov/Archives/edgar/data/1649739/0001649739-26-000041-index.html","accession_number":"0001649739-26-000041","cik":"0001649739","ticker":"BAFN","issuer_name":"BayFirst Financial Corp.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1649739/0001649739-26-000041-index.html","primary_entity_key":"0001649739","primary_entity_name":"BayFirst Financial Corp."},"word_count":433,"has_tables":true,"body_markdown":"Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit\n\nReport or Completed Interim Review.\n\nDuring this process, management also identified $2.8 million of deferred origination costs and $2.1 million of accrued interest as of March 31, 2026, related to loans which had defaulted or placed into non-accrual status in prior periods, which resulted in a material understatement of provision expense and overstatement of net interest income during the effected quarterly periods in which the errors accumulated in 2024, 2025, and the first quarter of 2026.\n\nThese misstatements have resulted in corrections to the Company’s results of operations for the periods of 2024, 2025, and the first quarter of 2026. Specifically, the previously reported: (i) 2024 net income of $12.6 million will be restated to a net income of $11.4 million; (ii) 2025 net loss of $22.9 million will be restated to a net loss of $24.2 million; and (iii) first quarter 2026 net loss of $5.7 million will be restated to a net loss of $5.9 million.\n\nAs a result of management’s review, on July 14, 2026, Company management recommended to the Audit Committee of the Board of Directors, and the Audit Committee agreed, that the Company’s consolidated financial statements as of and for the years ended December 31, 2024, and December 31, 2025, and the quarter ended March 31, 2026, should be restated, and the previously issued consolidated financial statements, and the related audit reports from its independent registered public accounting firm for such periods, should no longer be relied on. In addition, investors should no longer rely upon earnings releases, press releases, investor presentations and other communications that cover any period during these periods.\n\nAccordingly, the Company will file amendments to its 2025 Form 10-K restating the years ended December 31, 2025 and 2024, and to its first quarter 2026 Form 10-Q restating that period. The Company expects to file these amendments by August 12, 2026. For the quarters in 2025, those will be restated comparatively as the Form 10-Q for the corresponding quarter in 2026 is filed.\n\nFurther, the Company is undertaking a recovery analysis of incentive-based compensation received by Company executive officers during the relevant recovery period pursuant to 17 CFR Section 240.10D-1(b). In addition, the Company is evaluating whether the matters discussed above will result in\n\nthe identification of material weaknesses in the Company’s internal control over financial reporting. If such weaknesses are identified, they will also be disclosed in the amended filings.\n\nManagement and the Audit Committee have discussed the matters disclosed herein with Forvis Mazars, LLP, the Company’s independent registered public accounting firm."}