American Resources Corp. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by American Resources Corporation on June 8, 2020. The report discloses a material 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. The document references prior financial statements for fiscal years ended December 31, 2018, and December 31, 2019, noting that the auditor's reports included an explanatory paragraph regarding the Company's ability to continue as a going concern.
Material Changes
- Dismissal of Auditor: On June 8, 2020, the Audit Committee approved the dismissal of MaloneBailey LLP as the independent registered public accounting firm.
- Appointment of New Auditor: On June 8, 2020, the Audit Committee approved the appointment of BF Borgers CPA, PC as the new independent public accounting firm, effective immediately.
- Audit History: MaloneBailey's reports for 2018 and 2019 did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles, aside from the going concern explanatory paragraph.
- Disagreements: There were no disagreements with MaloneBailey on accounting principles, practices, or auditing scope during the relevant periods.
- Reportable Events: No reportable events occurred except for material weaknesses in internal control over financial reporting previously disclosed in the Company's Annual Report.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future operations, or new risk factors. The primary risk context provided is the historical disclosure of material weaknesses in internal controls and the going concern qualification noted in prior audit reports.
Investor Verification Checklist
- Verify the content of MaloneBailey LLP's letter to the SEC (Exhibit 16.1) to confirm their agreement with the Company's statements regarding the dismissal.
- Review the Company's most recent Annual Report to understand the specific material weaknesses in internal control over financial reporting.
- Assess the Company's current liquidity and going concern status given the historical explanatory paragraphs in audit reports.
- Confirm the transition timeline and scope of work for the newly engaged auditor, BF Borgers CPA, PC.