Business Context and Reporting Period
This Form 8-K Current Report was filed by Aqua Metals, Inc. (AQMS) on September 29, 2023. The report discloses a change in the Company's independent registered public accounting firm.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on corporate governance regarding the audit firm.
Material Changes
- Appointment of New Auditor: On September 26, 2023, the Company engaged FORVIS, LLP to serve as its independent registered public accounting firm for the fiscal year ending December 31, 2023. This engagement was approved by the Audit Committee and is effective immediately.
- Termination of Former Auditor: The Company terminated its engagement with Armanino LLP, effective September 26, 2023. Armanino had previously notified the Company in July 2023 of its decision to transition away from providing audit services to public companies.
- Audit History: Armanino audited the consolidated financial statements for the fiscal years ended December 31, 2022, and 2021. Their reports contained no adverse opinions, disclaimers, or qualifications.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding business operations. Regarding risks and contingencies, the Company confirmed there were no disagreements with Armanino LLP during the two most recent fiscal years or the interim period ended June 30, 2023, concerning accounting principles, financial statement disclosures, or auditing scope. Additionally, Armanino did not advise the Company of any "reportable events" during those periods.
Investor Verification Checklist
- Verify the transition timeline between Armanino LLP and FORVIS, LLP to ensure no gap in audit coverage.
- Review the letter from Armanino LLP (Exhibit 16.1) to confirm their agreement with the statements regarding the termination and lack of disagreements.
- Monitor future filings (10-Q and 10-K) for the first audit report issued by FORVIS, LLP.
- Confirm that the change in auditor does not signal underlying financial distress, given the former auditor's voluntary withdrawal from public company audits.