HighPeak Energy, Inc. Form 8-K Summary
Business context and reporting period
HighPeak Energy, Inc. filed this Current Report on October 1, 2020, under Item 4.01 to report a change in its independent registered public accounting firm. The company completed its business combination with Pure Acquisition Corp. on August 21, 2020 and became the successor entity to related predecessor businesses, including HPK LP.
Change in certifying accountant
- WithumSmith+Brown, PC served as the company’s principal accountant from October 29, 2019, the company’s inception, through October 1, 2020.
- On October 1, 2020, the Audit Committee dismissed Withum and appointed Weaver and Tidwell, L.L.P. as principal accountant, effective immediately.
- Weaver previously audited HPK LP, the company’s predecessor, for the period from August 28, 2019 through December 31, 2019, as well as HighPeak I and HighPeak II.
Financial metrics and audit matters
The filing does not provide revenue, profit, cash flow, margins, debt, liquidity, or other operating and financial metrics.
- There were no disagreements with Withum regarding accounting principles or practices, financial statement disclosure, or audit scope or procedures.
- No reportable events were identified during the periods disclosed.
- Withum’s May 13, 2020 report on the company’s December 31, 2019 financial statements was not adverse, disclaimed, qualified, or modified, except for a going-concern uncertainty related to Pure’s obligation to complete a business combination by August 21, 2020 or liquidate.
- Withum provided a letter dated October 1, 2020, filed as Exhibit 16.1, addressing the company’s statements regarding the accountant change.
Material changes, outlook, and risks
The material event is the replacement of the company’s independent accountant following the August 21, 2020 business combination. The filing provides no financial guidance or operating outlook. The historical going-concern uncertainty associated with Pure’s pre-business-combination deadline was disclosed as an audit-report matter; the filing does not state that the uncertainty continued after the transaction.
Important facts for investors to verify
- Review Exhibit 16.1 for Withum’s response regarding the accountant change.
- Assess Weaver’s prior audit relationship with HPK LP, HighPeak I, and HighPeak II and its relevance to successor-company reporting.
- Review subsequent filings for the company’s post-combination financial condition, liquidity, debt, and operating results.
- Confirm whether any new audit matters, internal-control issues, or going-concern disclosures arise in subsequent reports.