Fathom Holdings Inc. 8-K Summary
Business Context and Reporting Period
Fathom Holdings Inc. filed a Form 8-K dated June 7, 2021 under Item 4.01 regarding a change in its independent registered public accounting firm. The company is an emerging growth company, and its common stock trades on the Nasdaq Capital Market under the symbol FTHM.
Financial Metrics and Liquidity
This filing does not report revenue, profit, cash flow, margins, debt, liquidity, or other current-period financial metrics. It references the company’s fiscal years ended December 31, 2020 and 2019 but provides no financial statement amounts.
Material Changes Versus the Prior Comparable Period
- The Audit Committee dismissed BDO USA, LLP as the company’s independent registered public accounting firm on June 7, 2021.
- The Audit Committee approved the appointment of Deloitte & Touche LLP for the fiscal year ending December 31, 2021, subject to completion of standard client acceptance procedures and execution of an engagement letter.
- BDO’s audit reports for 2020 and 2019 contained no adverse opinion, disclaimer, or qualification relating to uncertainty, audit scope, or accounting principles, except for an explanatory paragraph concerning adoption of new accounting standards.
Management Commentary, Risks, and Unusual Items
- The company reported no disagreements with BDO during 2019, 2020, or the interim period through June 7, 2021 concerning accounting principles, financial statement disclosure, or audit scope or procedures.
- No reportable events were identified other than previously disclosed material weaknesses involving application of the COSO Internal Control—Integrated Framework and controls over revenue reconciliation and recording.
- The company stated that neither it nor anyone acting on its behalf consulted Deloitte during the relevant periods regarding accounting principles, potential audit opinions, disagreements, or reportable events.
- BDO was provided a copy of the filing disclosures and furnished a letter to the SEC dated June 8, 2021, filed as Exhibit 16.1.
Investor Verification Items
- Verify completion of Deloitte’s client acceptance procedures and execution of the engagement letter.
- Review Exhibit 16.1 for BDO’s confirmation of the company’s statements.
- Assess the status and remediation of the previously disclosed material weaknesses, particularly revenue controls and accounting personnel resources.
- Review subsequent filings for any effects of the auditor transition on the 2021 audit or financial reporting.