8-K: Nutex Health Announces Change in Independent Registered Public Accounting Firm

Nutex Health Inc. reports the resignation of Marcum LLP as its independent auditor due to its acquisition by CBIZ CPAs P.C., and the subsequent engagement of CBIZ as the new auditor.

Summary

• Nutex Health Inc. announced that Marcum LLP resigned as their independent registered public accounting firm on April 25, 2025, due to its acquisition by CBIZ CPAs P.C.
• The company's Audit Committee approved Marcum's resignation.
• Marcum's audit report for the fiscal years ended December 31, 2024 and 2023 did not contain any adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
• There were no disagreements between Nutex Health and Marcum on accounting principles, practices, financial statement disclosure, or auditing scope or procedure during the fiscal years ended December 31, 2024 and 2023 and through April 25, 2025.
• The company identified material weaknesses in its internal control over financial reporting related to logical access, program change management, vendor management, business process controls, and spreadsheet accuracy.
• Nutex Health engaged CBIZ as its new independent registered public accounting firm for the fiscal year ending December 31, 2025, with the approval of the Audit Committee.
• Nutex Health did not consult with CBIZ regarding accounting principles or the type of audit opinion during the fiscal years ended December 31, 2024 and 2023 and through April 25, 2025.

Sentiment

Score: 4

Explanation: The announcement of a change in auditors is neutral, but the disclosure of material weaknesses in internal controls is a negative factor.

Positives

• Marcum's audit reports for 2023 and 2024 did not contain adverse opinions or disclaimers.
• The company promptly engaged a new auditor, CBIZ, after Marcum's resignation.

Negatives

• Material weaknesses were identified in the company's internal control over financial reporting related to logical access, program change management, vendor management, business process controls, and spreadsheet accuracy.

Risks

• The identified material weaknesses in internal controls could lead to potential misstatements in financial reporting.
• The transition to a new auditor could present challenges in ensuring a smooth audit process for the fiscal year ending December 31, 2025.

Future Outlook

The company will work with CBIZ to complete the audit for the fiscal year ending December 31, 2025, and address the identified material weaknesses in internal controls.

Industry Context

Changes in auditing firms are not uncommon, especially following mergers and acquisitions within the accounting industry. Companies must ensure a smooth transition to maintain investor confidence and regulatory compliance.

Comparison to Industry Standards

• The identified material weaknesses in internal controls are a concern, as effective internal controls are crucial for reliable financial reporting.
• Companies like Encompass Health Corporation and Community Health Systems also operate healthcare facilities and are expected to maintain robust internal controls over financial reporting.
• Failure to do so can lead to regulatory scrutiny and reputational damage.

Stakeholder Impact

• Shareholders may be concerned about the material weaknesses in internal controls.
• Employees involved in financial reporting may need additional training and resources to improve internal control processes.
• The company's creditors may require additional assurances regarding the accuracy of financial reporting.

Next Steps

• CBIZ will conduct the audit for the fiscal year ending December 31, 2025.
• The company will need to remediate the identified material weaknesses in its internal control over financial reporting.

Key Dates

Keywords

independent auditor, CBIZ, Marcum, internal control, financial reporting, Nutex Health, resignation, engagement, audit committee