Business Context and Reporting Period
This Form 8-K is a current report filed by Snap Interactive, Inc. (not Intelligent Protection Management Corp.) on April 24, 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. This report focuses exclusively on governance and accounting firm changes rather than financial performance data.
Material Changes
- Accountant Change: The Board of Directors approved the engagement of Marcum LLP as the independent registered public accounting firm for the year ending December 31, 2015, effective immediately.
- Dismissal: Ernst & Young LLP was dismissed as the independent registered public accounting firm, effective immediately.
- Disagreements: There were no disagreements between the Company and Ernst & Young regarding accounting principles, financial statement disclosure, or audit scope for the years ended December 31, 2013 and 2014, or the period from January 1, 2015, through April 24, 2015.
Outlook, Risks, and Contingencies
- Internal Control Weakness: The Company disclosed a material weakness in internal control over financial reporting for the years ended December 31, 2013 and 2014. This weakness stemmed from the lack of an independent audit committee to provide oversight of officers, operations, and financial reporting.
- Audit Opinions: The reports issued by Ernst & Young for 2013 and 2014 did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- Consultations: The Company did not consult with Marcum LLP regarding accounting principles or audit opinions prior to the engagement.
Investor Verification Checklist
- Verify the rationale for dismissing Ernst & Young LLP and selecting Marcum LLP.
- Confirm the status of the material weakness regarding the lack of an independent audit committee and any remediation plans.
- Review the attached letter from Ernst & Young LLP (Exhibit 16.1) to ensure they agree with the Company's statements regarding the dismissal.
- Check subsequent filings for the first financial statements audited by Marcum LLP.