Item 4.01 Changes in Registrant’s Certifying Accountant
(a) On July 8, 2022, the Audit Committee of the Board of Directors (the “Audit Committee”), of MedAvail Holdings, Inc. (the “Company”) approved the dismissal of PricewaterhouseCoopers LLP (“PwC”) as the Company’s independent registered public accounting firm, effective as of July 8, 2022. The dismissal of PwC and the engagement of Baker Tilly US, LLP (“Baker Tilly”) as the Company’s independent registered public accounting firm (as described further in Item 4.01(b) of this Current Report on Form 8-K) is in part due to the Company’s expanding operations in the United States.
The auditor’s reports of PwC on the Company’s financial statements for either of the past two fiscal years ended 2021 and 2020 did not contain an adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principle, except that PwC’s auditor’s report dated March 29, 2022 on the consolidated financial statements that the Company filed in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2021 contained an explanatory paragraph expressing substantial doubt regarding the Company’s ability to continue as a going concern.
During the fiscal years ended December 31, 2021 and December 31, 2020, and the subsequent interim period through to July 8, 2022, there were no: (1) disagreements (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) with PwC 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 PwC, would have caused PwC to make reference thereto in their reports on the financial statements for such years, or (2) reportable events (as described in Item 304(a)(1)(v) of Regulation S-K).
We delivered a copy of this Current Report on Form 8-K to PwC and requested that a letter addressed to the Securities and Exchange Commission stating whether or not it agrees with the statements made in response to this Item. PwC responded with a letter dated July 11, 2022, a copy of which is annexed hereto as Exhibit 16.1, stating that PwC agrees with the statements set forth above.
(b) Also on July 8, 2022, the Audit Committee approved the engagement of Baker Tilly as the Company’s independent registered public accounting firm for the year ending December 31, 2022.
During the fiscal years ended December 31, 2021 and December 31, 2020, and the subsequent interim period through to July 8, 2022, neither the Company, nor anyone on the Company’s behalf, consulted with Baker Tilly regarding either (i) the application of accounting principles to a specific transaction, completed or proposed, or the type of audit opinion that might be rendered on the Company’s financial statements, and neither a written report nor oral advice was provided to the Company that Baker Tilly 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 and the related instructions) or a reportable event (as described in Item 304(a)(1)(v) of Regulation S-K).
