Business Context and Reporting Period
This Form 8-K is a current report filed by Medical Transcription Billing, Corp. (also referenced as Carecloud, Inc.) on June 11, 2015. The filing addresses a change in the company's independent registered public accounting firm.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. However, it notes that the independent auditor's report for the fiscal year ended December 31, 2014, contained an explanatory paragraph regarding the company's ability to continue as a going concern.
Material Changes
- Dismissal of Auditor: On June 11, 2015, the company dismissed Deloitte & Touche LLP as its independent registered public accounting firm, effective immediately.
- Appointment of New Auditor: On June 10, 2015, the Audit Committee approved the appointment of Grant Thornton LLP as the new independent registered public accounting firm, effective for the quarter ending June 30, 2015, and the fiscal year ending December 31, 2015.
- Audit Disagreements: The company reported no disagreements with Deloitte regarding accounting principles, financial statement disclosures, or auditing scope during the two most recent fiscal years or through the date of dismissal.
Outlook, Risks, and Management Commentary
Management confirmed that there were no "reportable events" as defined by Regulation S-K during the relevant periods. The primary risk highlighted in the filing is the prior "going concern" qualification noted in the 2014 financial statements by Deloitte. The company has not consulted the new auditor, Grant Thornton, on any matters related to accounting principles or potential disagreements prior to their appointment.
Investor Verification Checklist
- Verify the specific reasons for the dismissal of Deloitte & Touche LLP, as the filing states no disagreements occurred but does not elaborate on the strategic rationale.
- Review the most recent financial statements to assess the status of the "going concern" uncertainty noted in the 2014 audit report.
- Confirm the transition timeline and scope of work for the new auditor, Grant Thornton LLP, for the second quarter of 2015.
- Examine the letter from Deloitte (Exhibit 16.1) to ensure they concur with the company's statements regarding the dismissal.