CareCloud announces potential resignation of its audit firm

CareCloud (CCLD) announced that its current independent registered public accounting firm may resign if an ICFR auditor attestation of the Company’s Internal Control over Financial Reporting, ICFR, under Section 404(b) of the Sarbanes-Oxley Act is required for fiscal year 2025. CareCloud’s audit firm has informed the Company that it does not have the capacity to perform an ICFR attestation. Under SEC rules, the same audit firm must conduct both the financial statement audit and the ICFR attestation. Therefore, if an ICFR attestation becomes necessary, the audit firm would be unable to fulfill the full scope of the required audit services, and CareCloud would need to engage a new independent registered public accounting firm. The requirement for an ICFR attestation will be determined based on CareCloud’s public float amount as of the close of trading on June 30, 2025. If the public float equals or exceeds $75 million, CareCloud would be classified as an accelerated filer, triggering the ICFR attestation requirement under Section 404(b) of the Sarbanes-Oxley Act.