Business Context and Reporting Period
Company: Dynex Capital, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: December 18, 2024
Reporting Period: The filing addresses events occurring on December 18, 2024, regarding the change of the independent registered public accounting firm.
Key Financial Metrics
This filing does not contain financial performance data. There are no disclosures regarding revenue, profit, cash flow, margins, debt, or liquidity in this document.
Material Changes
The primary material change reported is the replacement of the Company's independent registered public accounting firm:
- Dismissal: BDO USA, P.C. was dismissed as the independent auditor effective upon completion of the audit for the fiscal year ending December 31, 2024.
- Appointment: Ernst & Young LLP (EY) was appointed as the independent auditor for the fiscal year ending December 31, 2025.
- Reasoning: The Audit Committee and Board of Directors approved the change following an extensive evaluation process.
Guidance, Outlook, and Risks
Management Commentary:
- There were no "disagreements" between the Company and BDO regarding accounting principles, financial statement disclosure, or auditing scope during the fiscal years ended December 31, 2023 and 2022, or subsequent interim periods.
- BDO's reports for the fiscal years ended December 31, 2023 and 2022 did not contain adverse opinions, disclaimers, or qualifications.
- No consultations were made with EY regarding accounting principles or reportable events prior to their appointment.
- The engagement of EY is subject to the completion of standard client acceptance procedures and the execution of an engagement letter.
Investor Verification Checklist
- Verify the effective date of the transition from BDO USA, P.C. to Ernst & Young LLP.
- Review the letter from BDO USA, P.C. (Exhibit 16.1) to confirm their agreement with the Company's statements regarding the dismissal.
- Monitor the upcoming Form 10-K for the fiscal year ended December 31, 2024, to confirm the final audit opinion issued by BDO.
- Confirm the execution of the engagement letter with EY for the 2025 fiscal year.