Business Context and Reporting Period
Company: Algorhythm Holdings, Inc. (Ticker: RIME)
Filing Type: Form 8-K (Current Report)
Date of Report: April 25, 2025
Principal Office: Fort Lauderdale, FL
This filing reports a change in the registrant's certifying accountant. Effective April 25, 2025, Marcum LLP resigned as the independent registered accounting firm, and CBIZ CPAs P.C. was engaged as the successor firm for the year ending December 31, 2025.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on the change in auditors and related disclosures.
Material Changes and Audit History
- Accountant Resignation: Marcum LLP resigned effective April 25, 2025. CBIZ CPAs P.C. was engaged immediately following the acquisition of Marcum's attest business on November 1, 2024.
- Going Concern Warning: Marcum's reports for the year ended December 31, 2024, and the nine-month transition period (April 1, 2023 – December 31, 2023), included an explanatory paragraph regarding substantial doubt about the Company's ability to continue as a going concern.
- Internal Control Weaknesses: The filing identifies material weaknesses in the Company's internal control over financial reporting as a "reportable event," previously disclosed in the Form 10-K filed on April 15, 2025.
- No Disagreements: There were no disagreements with Marcum regarding accounting principles, practices, or audit scope during the relevant periods.
Guidance, Risks, and Contingencies
Risks and Contingencies: The primary risk highlighted is the substantial doubt regarding the Company's ability to continue as a going concern, as noted in prior audit reports. Additionally, the existence of material weaknesses in internal controls over financial reporting represents a significant operational and compliance risk.
Management Commentary: The filing states that the change in auditors was approved by the Audit Committee and the Board of Directors. Marcum has been authorized to respond fully to inquiries from CBIZ regarding the reportable events.
Investor Verification Checklist
- Verify the specific nature and remediation plan for the material weaknesses in internal controls over financial reporting disclosed in the Form 10-K (filed April 15, 2025).
- Review the "Going Concern" explanatory paragraph in the most recent audited financial statements to understand the liquidity risks.
- Confirm the transition timeline and scope of work between Marcum LLP and CBIZ CPAs P.C.
- Examine the letter from Marcum LLP (Exhibit 16.1) for any additional context regarding the resignation.