Business Context and Reporting Period
This Form 8-K Current Report was filed by Prairie Operating Co. (formerly Creek Road Miners, Inc.) on May 25, 2023. The filing primarily 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. However, it notes that the audit report for the fiscal year ended December 31, 2022, contained an explanatory paragraph regarding the existence of substantial doubt about the Company's ability to continue as a going concern.
Material Changes
- Resignation of Former Accountant: MaughanSullivan LLC ceased providing services as of April 1, 2023, and formally withdrew as the independent registered public accounting firm. The firm confirmed it provided no audit services after March 31, 2023.
- Appointment of New Accountant: On May 30, 2023, the Audit Committee approved the engagement of Ham, Langston & Brezina, L.L.P. (HL&B) as the new independent registered public accounting firm for the fiscal year ending December 31, 2023.
- No Disagreements: The company reported no disagreements with the former accountant regarding accounting principles, financial statement disclosure, or auditing scope during the two most recent fiscal years or the interim period through March 31, 2023.
Outlook, Risks, and Contingencies
The primary risk highlighted in this filing is the going concern uncertainty noted in the 2022 audit report. The filing does not contain forward-looking guidance, management commentary on future operations, or details on specific contingencies beyond the accounting firm transition.
Investor Verification Checklist
- Verify the reasons for MaughanSullivan LLC's withdrawal and the specific nature of the "substantial doubt" regarding the company's going concern status.
- Confirm the scope of services and engagement terms with the new auditor, Ham, Langston & Brezina, L.L.P.
- Review the most recent financial statements to assess the company's current liquidity and solvency position given the prior going concern warning.
- Check for any subsequent filings that may address the company's operational status or capital raising efforts.