Item 8. Financial Statements and Supplementary Data
Item 8. Financial Statements and Supplementary Data
The consolidated financial
statements and accompanying notes listed in Part IV, Item 15 of this Annual Report on Form 10-K are included immediately following Part
IV hereof and incorporated by reference herein.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
(a) Replacement
of Independent Registered Public Accounting Firm
On October 23, 2023 the Audit
Committee of the Board of Directors dismissed Baker Tilly US, LLP (“Baker Tilly”) as our independent registered public accounting
firm and approved replacing them with Mazars USA LLP (“Mazars”) on October 23, 2023.
During the fiscal years ended
December 31, 2022 and 2021 and for the subsequent interim period from January 1, 2023 to October 23, 2023, there were no disagreements
between us and Baker Tilly on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure
which, if not resolved to the satisfaction of Baker Tilly, would have caused Baker Tilly to make reference to the subject matter of the
disagreements in connection with its reports for such fiscal years; and there were no reportable events as defined in Item 304(a)(1)(v)
of Regulation S-K, except for the disclosure of material weaknesses in our internal control over financial reporting as disclosed in Part
II, Item 9A of our Annual Reports on Form 10-K for the fiscal years ended December 31, 2022, and 2021, respectively and in Part I, Item
4A of our Quarterly Reports for the quarters ended March 31, 2023 and June 30, 2023. The material weaknesses related to insufficient segregation
of duties on certain controls or processes, limited resources to design and implement internal control procedures to support financial
reporting objectives, failure to appropriately evaluate revenue recognition under ASC 606 for our advertisement supported video on demand
and subscription video on demand revenue streams for contracts with streaming platforms, lack of risk assessment procedures on internal
controls to detect financial reporting risks in a timely manner, and insufficient procedures and documentation related to review type
controls and information technology controls including complex transactions such as business combinations. The material weaknesses identified
did not result in the restatement of any previously reported financial statements or any related financial disclosure, nor did management
believe that it had any effect on the accuracy of our financial statements for the reporting periods covered in such reports. Baker Tilly
discussed each of these reportable events with the Audit Committee, and we have authorized Baker Tilly to respond fully to the inquiries
of Mazars concerning the subject matter of each such reportable event.
Our Audit Committee of the
board of directors dismissed Mazars as our independent registered public accounting firm on January 24, 2024, and approved replacing them
with WithumSmith+Brown, PC (“Withum”) on January 29, 2024.
Mazars was appointed on October
25, 2023 and has not issued any reports on our financial statements for the past two fiscal years. Accordingly, Mazars did not issue any
reports during such time that contained an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty,
audit scope, or accounting principles. Furthermore, for the period from October 25, 2023 through January 24, 2024, there were no disagreements
between ourselves and Mazars on any matter of accounting principles or practices, financial statement disclosure or auditing scope or
procedure which, if not resolved to Mazars’s satisfaction, would have caused Mazars to make reference to the subject matter of the
disagreements in connection with its reports on our financial statements for such periods.
For the period from October
25, 2023 through January 24, 2024, there were no “reportable events” as that term is described in Item 304(a)(1)(v) of Regulation
S-K.
38
(b) Appointment
of New Independent Registered Public Accounting Firm
On January 29, 2024, the Audit
Committee appointed Withum as our independent registered public accounting firm for the fiscal year ending December 31, 2023, effective
immediately.
During our two prior fiscal
years ended December 31, 2023 and 2022, and the subsequent interim period from January 1, 2024 to January 28, 2024, neither ourselves
nor anyone on its behalf consulted Withum regarding either (i) the application of accounting principles to a specified transaction, either
completed or proposed, or the type of audit opinion that might be rendered on our consolidated financial statements, and no written report
or oral advice was provided to us that Withum concluded was an important factor considered by us in reaching a decision as to any accounting,
auditing, or financial reporting issue, or (ii) any matter that was the subject of a “disagreement” or “reportable event”
as those terms are defined in Item 304(a)(1) of Regulation S-K.