8-K: IMAC Holdings Changes Accounting Firms: CBIZ CPAs Replaces Marcum LLP

IMAC Holdings, Inc. has replaced its independent registered public accounting firm, Marcum LLP, with CBIZ CPAs, effective May 2, 2025.

Summary

• IMAC Holdings, Inc. announced the dismissal of Marcum LLP as their independent registered public accounting firm on April 30, 2025.
• The company engaged CBIZ CPAs as their new independent registered public accounting firm, effective May 2, 2025, with the approval of the Audit Committee.
• The change was prompted by CBIZ CPAs acquiring Marcum's attest business on November 1, 2024.
• During the fiscal year ended December 31, 2024, and through April 30, 2025, there were no disagreements or reportable events between the Company and Marcum, except for a previously disclosed material weakness in internal control over financial reporting.
• Marcum's report on the company's 2024 financial statements included an explanatory paragraph regarding substantial doubt about the company's ability to continue as a going concern.

Sentiment

Score: 4

Explanation: The change in auditors itself is neutral, but the mention of a 'going concern' warning and a material weakness in internal controls raises concerns, leading to a slightly negative sentiment.

Positives

• The Audit Committee approved the engagement of a new accounting firm, demonstrating corporate governance oversight.
• Marcum agreed with the statements made by IMAC Holdings in the Form 8-K regarding their dismissal.

Negatives

• Marcum's audit report for the fiscal year ended December 31, 2024, included an explanatory paragraph relating to substantial doubt about the Company's ability to continue as a going concern.
• The company previously disclosed a material weakness in its internal control over financial reporting.

Risks

• The previously disclosed material weakness in internal control over financial reporting could lead to errors in financial statements.
• The explanatory paragraph in Marcum's audit report regarding the company's ability to continue as a going concern could negatively impact investor confidence.

Future Outlook

The document does not contain specific forward-looking statements regarding financial performance or future business activities.

Management Comments

• Faith Zaslavsky, Chief Executive Officer, signed the report on behalf of IMAC Holdings, Inc.

Industry Context

Changes in accounting firms are not uncommon, especially following acquisitions or mergers within the accounting industry. Companies often seek to align themselves with firms that have specific expertise or a better understanding of their business needs.

Comparison to Industry Standards

• It's common for companies to change auditors, but the circumstances surrounding the change, such as an acquisition of the previous auditor's business, are important to consider.
• The presence of a 'going concern' paragraph in the previous auditor's report is a significant issue that warrants close scrutiny, as it indicates potential financial instability.
• Comparable companies would be those in a similar financial situation, potentially undergoing restructuring or facing financial challenges, and also those that have recently changed auditors.

Stakeholder Impact

• Shareholders may be concerned about the change in auditors and the previously disclosed material weakness in internal control.
• Employees may experience uncertainty due to the company's financial situation and the going concern warning.

Key Dates

Keywords

accounting firm, CBIZ CPAs, Marcum LLP, independent auditor, internal control, financial reporting, going concern