Item 4.01 Changes in Registrant's Certifying Accountant.
(a) Dismissal of Previous Independent Registered Public Accounting Firm
On September 8, 2021, the Audit Committee (the "Committee") of the Board of
Directors of Sanara MedTech Inc. (the "Company") approved the dismissal of
MaloneBailey, LLP ("MaloneBailey"), as the Company's independent registered
public accounting firm, effective immediately, and informed MaloneBailey of such
dismissal on the date thereof.
The reports of MaloneBailey on the Company's consolidated financial statements
for the two most recent fiscal years, ended December 31, 2019 and 2020, did not
contain an adverse opinion or a disclaimer of opinion and were not qualified or
modified as to uncertainty, audit scope, or accounting principles.
During the Company's two most recent fiscal years, ended December 31, 2019 and
2020, and the subsequent interim period through September 8, 2021, (i) there
were no disagreements, as defined in Item 304(a)(1)(iv) of Regulation S-K, with
MaloneBailey on any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure, which disagreements, if
not resolved to the satisfaction of MaloneBailey, would have caused MaloneBailey
to make reference to the subject matter of the disagreements in connection with
its reports on the Company's consolidated financial statements for such period,
and (ii) there were no "reportable events," as defined in Item 304(a)(1)(v) of
Regulation S-K, except that the Company identified a material weakness in its
internal control over financial reporting related to the small size of the
Company and limited segregation of duties, which was described in Item 9A of the
Company's Annual Report on Form 10-K for the year ended December 31, 2019.
The Company provided MaloneBailey with a copy of the disclosures in this Current
Report on Form 8-K and requested that MaloneBailey furnish the Company with a
letter addressed to the Securities and Exchange Commission stating whether or
not it agrees with the Company's statements herein. A copy of such letter, which
is dated September 9, 2021, is attached as Exhibit 16.1 to this Current Report
on Form 8-K.
(b) Appointment of New Independent Registered Public Accounting Firm
On September 8, 2021, the Committee approved the engagement of Weaver and
Tidwell, L.L.P. ("Weaver") as the Company's independent registered public
accounting firm for the fiscal year ending December 31, 2021, effective
immediately.
During the fiscal years ended December 31, 2019 and 2020, and the subsequent
interim period through September 8, 2021, neither the Company nor anyone acting
on its behalf has consulted with Weaver regarding (i) the application of
accounting principles to any specified transaction, either completed or
proposed, or the type of audit opinion that might be rendered on the Company's
consolidated financial statements, and neither a written report nor oral advice
was provided to the Company that Weaver concluded was an important factor
considered by the Company in reaching a decision as to any accounting, auditing,
or financial reporting issue, or (ii) any matter that was either the subject of
a "disagreement," as defined in Item 304(a)(1)(iv) of Regulation S-K, or a
"reportable event," as defined in Item 304(a)(1)(v) of Regulation S-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
16.1 Letter dated September 9, 2021 from MaloneBailey, LLP to the
Securities and Exchange Commission.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document).
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