Business Context and Reporting Period
This Form 8-K Current Report was filed by Sensus Healthcare, Inc. (SRTS) on September 5, 2024, with the report date finalized on September 11, 2024. The filing addresses a material change in the Company's independent registered public accounting firm.
Key Financial Metrics
This filing does not contain revenue, profit, cash flow, margin, debt, or liquidity metrics. It is a disclosure regarding corporate governance and audit oversight rather than a financial performance report.
Material Changes
- Resignation of Former Auditor: Marcum LLP resigned as the independent registered public accounting firm effective September 5, 2024. The resignation was due to independence concerns arising from Marcum's impending merger with CBIZ Inc., which provides human resources consulting and health insurance brokerage services to Sensus Healthcare.
- Appointment of New Auditor: On September 11, 2024, the Audit Committee appointed Berkowitz Pollack Brant Advisors + CPAs, LLP ("BPB") as the new independent registered public accounting firm, effective immediately.
- Audit History: Marcum's audit reports for fiscal years 2022 and 2023 contained no adverse opinions, disclaimers, or qualifications. There were no disagreements regarding accounting principles or audit scope during these periods.
Outlook, Risks, and Contingencies
- Material Weakness in Internal Controls: The filing references a material weakness in internal control over financial reporting as of June 30, 2024, previously disclosed in the Form 10-Q. This weakness relates to information technology general controls that failed to adequately restrict access to applications and data, ensure segregation of duties, and monitor activities of individuals with modification access.
- Impact of Weakness: The Company states that this material weakness did not result in any material misstatements to the condensed consolidated financial statements for the period ended June 30, 2024.
- Consultation with New Auditor: The Company did not consult with BPB regarding accounting principles, audit opinions, or any matters subject to disagreement or reportable events prior to their appointment.
Investor Verification Checklist
- Verify the independence status of the new auditor, BPB, relative to the Company's service providers.
- Review the Form 10-Q for the period ended June 30, 2024, to assess the specific remediation plan for the identified material weakness in IT general controls.
- Confirm the transition timeline and any potential delays in future financial reporting due to the change in auditors.
- Examine the letter from Marcum LLP (Exhibit 16.1) for any additional context regarding the resignation.