Business Context and Reporting Period
This Form 8-K Current Report is filed by Lifemd, Inc. (LFMD) on April 24, 2025. The filing primarily 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. This report focuses on corporate governance and audit matters rather than financial performance data.
Material Changes
- Accountant Resignation: Marcum LLP, the Company's independent auditor since 2022, resigned on April 24, 2025.
- New Auditor Engagement: The Company engaged CBIZ CPAs P.C. as its new independent registered public accounting firm on April 24, 2025, following CBIZ's acquisition of Marcum's attest business on November 1, 2024.
- Audit Opinions: Marcum's reports for the years ended December 31, 2024, and 2023 contained no adverse opinions, disclaimers, or qualifications.
- Disagreements: There were no disagreements with Marcum regarding accounting principles, financial statement disclosures, or auditing scope during the relevant periods.
Outlook, Risks, and Contingencies
Material Weaknesses in Internal Controls: The filing discloses "reportable events" related to material weaknesses in internal control over financial reporting identified during the fiscal years ended December 31, 2024 and 2023, and through April 24, 2025. These weaknesses include:
- IT General Controls (ITGCs): Deficiencies in user access and change management within information systems, as well as insufficient review of key third-party service provider Systems and Organizational Controls (SOC) reports.
- Business Process Controls: Issues related to Information Produced by the Entity (IPE) and system-generated IPE, specifically a lack of formal review and approval procedures for key information used in control performance.
Consultation with New Auditor: The Company confirmed it did not consult with CBIZ CPAs P.C. regarding accounting principles or audit opinions prior to their engagement.
Investor Verification Checklist
- Verify the transition timeline and handover status between Marcum LLP and CBIZ CPAs P.C.
- Review the Company's remediation plan for the disclosed material weaknesses in ITGCs and business process controls.
- Examine Exhibit 16.1 (Marcum's letter to the SEC) for any additional context regarding the resignation.
- Monitor upcoming financial filings for any impact of the control weaknesses on audit opinions or restatements.