Business Context and Reporting Period
This Form 8-K is a current report filed by Ra Medical Systems, Inc. (not Catheter Precision, Inc., which was acquired by Ra Medical) on June 21, 2023. The filing discloses a change in the registrant's certifying accountant. Following the acquisition of Catheter Precision, Inc. on January 9, 2023, the Company has shifted its primary operational focus to the Catheter line of business.
Key Financial Metrics
This filing is a disclosure of corporate governance and does not contain financial performance data. Consequently, the filing text does not provide clear values for revenue, profit, cash flow, margins, debt, or liquidity for the reporting period.
Material Changes
- Change in Auditor: The Audit Committee appointed WithumSmith+Brown, PC ("Withum") as the independent registered public accounting firm for the fiscal year ending December 31, 2023.
- Dismissal of Prior Auditor: The Committee simultaneously dismissed Haskell & White LLP ("Haskell") as the independent registered accounting firm.
- Rationale: The change aligns with the Company's strategic shift following the acquisition of Catheter Precision, Inc., as Withum previously audited Catheter Precision for the fiscal year ended December 31, 2022.
Guidance, Outlook, and Risks
Management Commentary and Risks:
- Going Concern History: The filing notes that Haskell's report on the 2021 financial statements included an explanatory paragraph expressing substantial doubt regarding the Company's ability to continue as a going concern. No such qualification was present in the 2022 report.
- Disagreements: The Company confirmed there were no disagreements with Haskell regarding accounting principles, practices, or auditing scope during the fiscal years 2021 and 2022, or the interim period through June 21, 2023.
- Consultations: The Company confirmed it did not consult Withum regarding accounting principles or audit opinions prior to the appointment.
Investor Verification Checklist
- Verify the engagement letter terms between Ra Medical Systems, Inc. and WithumSmith+Brown, PC.
- Review the letter from Haskell & White LLP (Exhibit 16.1) to confirm their agreement with the Company's statements regarding the dismissal.
- Examine the most recent Form 10-K or 10-Q to assess the current financial health and liquidity status, as this 8-K does not provide updated financial metrics.
- Confirm the integration progress of the Catheter Precision, Inc. business line following the January 2023 acquisition.