Business Context and Reporting Period
This Form 8-K is a current report filed by Hemispherx Biopharma, Inc. (not AIM Immunotech Inc.) on April 6, 2018, regarding events occurring on April 2, 2018. The filing addresses a change in the company's independent registered public accounting firm.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on corporate governance and audit matters.
Material Changes
- Accountant Change: The company released RSM US LLP as its independent auditor after 12 years of service.
- New Auditor: Morrison, Brown, Argiz & Farra, LLC (MBAF) was appointed as the new independent registered public accounting firm on April 4, 2018.
- Reason for Change: The Audit Committee determined the rotation was necessary for best practices.
- Disagreements: There were no disagreements with RSM regarding accounting principles, practices, or auditing scope.
Outlook, Risks, and Contingencies
Material Weakness Disclosure: The filing references a previously disclosed material weakness in disclosure controls and procedures identified in the second and third quarters of 2017. This weakness related to the completeness and accuracy of recording the exercise of certain redeemable warrants.
Remediation: Management states the issue has been corrected, and no such material weakness was found during the fourth quarter of 2017. RSM's reports for fiscal years 2016 and 2017 contained no adverse opinions, disclaimers, or qualifications.
Investor Verification Checklist
- Verify the transition timeline and engagement terms with the new auditor, MBAF.
- Review the specific remediation steps taken to address the material weakness regarding redeemable warrants.
- Confirm the content of the letter from RSM US LLP (Exhibit 16.1) to ensure they agree with the company's statements regarding the departure.
- Check subsequent filings for the first audit report issued by MBAF to confirm the status of internal controls.