Business Context and Reporting Period
Company: Energy Recovery, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: April 13, 2018
Event Date: April 11, 2018
Context: The filing discloses a change in the Company's independent registered public accounting firm.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document is strictly a disclosure regarding the appointment of a new auditor and the dismissal of the former auditor.
Material Changes
- Appointment of New Auditor: The Audit Committee approved the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2018.
- Dismissal of Former Auditor: The Audit Committee approved the dismissal of BDO USA, LLP, the Company's former independent registered public accounting firm.
- Audit History: BDO's reports for the fiscal years ended December 31, 2016, and 2017 did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- Disagreements: There were no disagreements with BDO on accounting principles, practices, financial statement disclosure, or auditing scope/procedures during the relevant periods.
- Reportable Events: No "reportable events" occurred during the fiscal years ended December 31, 2016 and 2017, or the interim period through April 11, 2018.
Guidance, Outlook, and Risks
The filing does not provide financial guidance, outlook, or management commentary on business operations. It confirms that the Company has provided BDO with a copy of the report and requested a letter indicating agreement with the disclosures. BDO's letter, dated April 12, 2018, is filed as Exhibit 16.1. No consultations with Deloitte regarding matters requiring disclosure under Item 304(a)(2) of Regulation S-K occurred prior to the appointment.
Investor Verification Checklist
- Verify the content of the letter from BDO USA, LLP (Exhibit 16.1) to confirm they agree with the disclosures regarding the dismissal.
- Review the Company's subsequent filings (e.g., 10-K or 10-Q) to assess the impact of the auditor change on financial reporting timelines or processes.
- Confirm that no undisclosed disagreements or reportable events exist by cross-referencing with the new auditor's initial reports.