Business Context and Reporting Period
This Form 8-K is a current report filed by Conversion Labs, Inc. (not Lifemd, Inc.) on September 28, 2020. The filing addresses a change in the company's independent registered public accounting firm. The company is incorporated in Delaware and maintains its principal executive offices in New York, NY.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity for the current period. However, it notes that the audit reports for the fiscal years ended December 31, 2019, and December 31, 2018, contained an explanatory paragraph disclosing uncertainty regarding the Company's ability to continue as a going concern.
Material Changes
- Dismissal of Accountant: On September 28, 2020, the Company dismissed BF Borgers CPA PC as its independent registered public accounting firm.
- Appointment of New Accountant: On the same date, the Board appointed Friedman LLP as the new independent registered public accounting firm for the year ending December 31, 2020.
- No Disagreements: The Company reported no disagreements with the former accountant (Borgers) regarding accounting principles, practices, or auditing scope during the 2018 and 2019 fiscal years.
- No Reportable Events: There were no reportable events between January 1, 2020, and the date of dismissal.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future operations, or specific risk factors beyond the previously disclosed going concern uncertainty. The primary focus is the administrative change in audit firms. The Company confirmed that no consultations were held with the new firm (Friedman LLP) regarding accounting principles or reportable events prior to their appointment.
Investor Verification Checklist
- Verify the reasons for dismissing BF Borgers CPA PC, as the filing states no disagreements occurred.
- Review the "Letter from Borgers" (Exhibit 16.1) to confirm the former accountant's stance on the dismissal.
- Monitor upcoming financial statements for the status of the "going concern" uncertainty noted in prior audits.
- Confirm the transition timeline and scope of work for the newly appointed Friedman LLP.