Item 4.01 Changes in Registrant's Certifying Accountant.
Dismissal of Independent Registered Public Accounting Firm
On May 2, 2023, the Audit Committee of the board of directors (the "Audit
Committee") of SRAX, Inc. (the "Company") approved the dismissal of Marcum LLP
("Marcum") as independent registered public accounting firm of the Company
effective immediately. As previously reported, Marcum was engaged as the
Company's independent registered public accounting firm on October 27, 2022.
Marcum did not issue an audit report on the Company's consolidated financial
statements for the fiscal year ended December 31, 2022 or any interim period.
For the year ended December 31, 2022, and through the date of this Current
Report on Form 8-K, the Company had (i) no "disagreements" (as described in Item
304(a)(1)(iv) of Regulation S-K) with Marcum 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 Marcum,
would have caused it to make reference to the subject matter of such
disagreements in any of its future audit reports; and (ii) no "reportable
events" (as described in Item 304(a)(1)(v) of Regulation S-K), except that
Marcum concurred with the Company's assessment of material weaknesses related to
the Company's internal control over financial reporting.
Prior to the date hereof, Marcum advised the Audit Committee and the Company's
management of certain material weaknesses related to the Company's internal
control over financial reporting, which constitute a "reportable event" (as
defined in Item 304(a)(1)(v) of Regulation S-K). Accordingly, the Company
reported such material weaknesses in its internal control over financial
reporting in Management's Report on Internal Control Over Financial Reporting,
as set forth in Part I, Item 4 "Controls and Procedures" of the Company's
Quarterly Report on Form 10-Q for the quarter ended March 31, 2022. The Company
has authorized Marcum to respond fully to any inquiries that the Company's new
independent registered public accounting firm, TAAD LLP ("TAAD"), which
engagement is more fully described below, may have concerning the subject matter
of such reportable event.
The Company has provided Marcum with a copy of the disclosures it is making in
this Current Report on Form 8-K and requested that Marcum furnish the Company a
letter addressed to the U.S. Securities and Exchange Commission stating whether
it agrees with the above statements. A copy of Marcum's letter, dated May 5,
2023 is filed as Exhibit 16.1 to this Current Report on Form 8-K.
Engagement of New Independent Registered Public Accounting Firm
On May 2, 2023, the Audit Committee approved the engagement of TAAD as its
independent registered public accounting firm for the fiscal year ended December
31, 2022.
During the two most recent years ended December 31, 2022 and December 31, 2021
and during the subsequent interim period from January 1, 2023 through May 2,
2023, neither the Company, nor anyone acting on its behalf, consulted with TAAD
on (i) any matters regarding the application of accounting principles to a
specified transaction, either completed or proposed, or the type of audit
opinion that might be rendered with respect to the Company's consolidated
financial statements, and no written report or oral advice was provided to the
Company that TAAD 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 the subject of any disagreement (as described in
Item 304(a)(1)(iv) of Regulation S-K and the related instructions thereto) or a
reportable event (as defined in Item 304(a)(1)(v) of Regulation S-K).
Item 8.01 Other Events.
Effective April 10, 2023, the Company's mailing address has changed to 1014 S.
Westlake Blvd., Suite 14-299, Westlake Village, CA 91361.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
16.1 Letter dated May 5, 2023 from Marcum LLP to the Securities and
Exchange Commission, regarding statements included in this Current
Report on Form 8-K.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document)
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