Business Context and Reporting Period
Hyperfine, Inc. filed a Form 8-K concerning a change in its independent registered public accounting firm. The report covers actions taken on March 24, 2023, with the filing signed March 29, 2023. Hyperfine’s Class A common stock trades on Nasdaq under “HYPR.”
Key Financial and Accounting Matters
- The filing does not provide current-period revenue, profit, cash flow, margin, debt, liquidity, or other operating metrics.
- The Audit Committee appointed Grant Thornton LLP as independent registered public accounting firm for the fiscal year ending December 31, 2023.
- Deloitte & Touche LLP was dismissed as auditor on March 24, 2023.
- Deloitte’s audit reports on the combined and consolidated financial statements for the years ended December 31, 2022 and 2021 contained no adverse opinion, disclaimer, or qualification relating to uncertainty, audit scope, or accounting principles.
Material Changes and Internal Control Matters
- Hyperfine reported no disagreements with Deloitte during 2022, 2021, or the interim period through March 24, 2023, involving accounting principles, financial statement disclosure, or audit scope or procedures.
- The Company disclosed two previously reported material weaknesses in internal control over financial reporting.
- The first related to limited accounting and financial reporting personnel and inadequate internal supervision and review of information outsourced to 4Catalyzer Corporation before the December 2021 business combination.
- The second related to the classification of redeemable HealthCor Class A ordinary shares. The Company determined that the shares had been materially misclassified within permanent equity and restated related balance-sheet amounts, with offsets to additional paid-in capital, accumulated deficit, and ordinary shares to the extent applicable.
- Deloitte was authorized to respond fully to Grant Thornton regarding these reportable events. Deloitte’s March 29, 2023 letter is included as Exhibit 16.1.
Outlook, Risks, and Unusual Items
The filing provides no financial guidance or operating outlook. The principal disclosed risks concern the previously identified material weaknesses, the need to remediate financial reporting controls, and the potential for additional accounting or reporting errors. The auditor transition itself was not attributed to any disagreement or reportable event beyond the two previously disclosed material weaknesses.
Investor Verification Points
- Review Deloitte’s Exhibit 16.1 letter for its response to Hyperfine’s disclosures.
- Assess the status and effectiveness of remediation of both material weaknesses in subsequent filings.
- Verify whether Grant Thornton identifies additional control deficiencies, accounting issues, or audit qualifications in future reports.
- Review subsequent financial statements for the impact of the redeemable-share classification restatement and related adjustments.
- Confirm that the auditor change did not reflect undisclosed disagreements or reportable events.