Business Context and Reporting Period
This Form 8-K Current Report was filed by LiqTech International, Inc. on July 23, 2018. The filing addresses 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. The document focuses exclusively on the administrative change of auditors.
Material Changes
- Termination of Auditor: The company terminated the services of Gregory & Associates, LLC effective immediately on July 23, 2018.
- Reason for Termination: The principal of Gregory formerly responsible for the account is joining the new firm, and Gregory will no longer provide audit services to public companies subject to U.S. statutes.
- Appointment of New Auditor: The company retained Sadler, Gibb & Associates, L.L.C. as its new independent registered public accounting firm.
- Audit History: Gregory's reports for fiscal years ended December 31, 2017, and 2016, did not contain adverse opinions or disclaimers, except for a note regarding the company's ability to continue as a going concern.
- Disagreements: There were no disagreements with Gregory on accounting principles, practices, or auditing scope during the two most recent fiscal years.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding future operations. The primary risk disclosed is the historical note in prior audit reports concerning the company's ability to continue as a going concern. No reportable events occurred during the periods covered by the former auditor's reports.
Investor Verification Checklist
- Verify the status of the "going concern" note mentioned in the 2016 and 2017 audit reports.
- Confirm the transition timeline and scope of work for the new auditor, Sadler, Gibb & Associates, L.L.C.
- Review the attached letter from Gregory & Associates (Exhibit 16.1) to ensure they agree with the company's statements regarding the termination.
- Check for any subsequent filings that may provide updated financial data or address the going concern status.