Business Context and Reporting Period
This Form 8-K Current Report was filed by Pavmed Inc. on July 11, 2019. The company is incorporated in Delaware and identifies as an emerging growth company. The report primarily addresses a change in the registrant's certifying accountant.
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 outgoing auditor, Citrin Cooperman & Company, LLP, included an explanatory paragraph in its reports for the past two fiscal years regarding the company's ability to continue as a going concern.
Material Changes
- Accountant Change: On July 11, 2019, Pavmed Inc. engaged Marcum LLP as its new principal accountant to replace Citrin Cooperman & Company, LLP.
- Approval: The decision to change accountants was approved by the company's audit committee.
- Audit History: The outgoing auditor's reports for the last two fiscal years contained a going concern qualification but no adverse opinions, disclaimers, or other modifications regarding uncertainty, audit scope, or accounting principles.
Guidance, Risks, and Contingencies
The filing does not contain forward-looking guidance, management commentary on future operations, or specific risk factors beyond the historical going concern qualification noted in prior audit reports. The company confirmed there were no disagreements with the former accountant regarding accounting principles, financial statement disclosure, or auditing scope during the two most recent fiscal years or the subsequent interim period. Additionally, no "reportable events" occurred during this timeframe.
Investor Verification Checklist
- Verify the reasons for the change in principal accountants by reviewing the attached letter from Citrin Cooperman & Company, LLP (Exhibit 16).
- Review the most recent audited financial statements to assess the details of the "going concern" explanatory paragraph issued by the former auditor.
- Confirm the status of the company's liquidity and capital resources given the historical going concern warning.
- Monitor future filings for the first audit report issued by Marcum LLP to determine if the going concern qualification persists.