Business Context and Reporting Period
This Form 8-K filing by Flotek Industries, Inc. (FTK) was submitted on June 29, 2021. The report discloses a change in the company's independent registered public accounting firm effective as of the filing date.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on corporate governance regarding the audit firm.
Material Changes
- Accountant Change: The Audit Committee engaged KPMG LLP as the new independent registered public accounting firm effective June 29, 2021.
- Former Firm Release: BDO USA, LLP was released as the independent registered public accounting firm simultaneously with the engagement of KPMG.
- Audit History: BDO's reports for the fiscal year ended December 31, 2020, did not contain adverse opinions or disclaimers. However, the opinion noted that the Company did not maintain effective internal control over financial reporting as of December 31, 2020.
- Disagreements: There were no disagreements between the Company and BDO regarding accounting principles, practices, or auditing scope during the 2020 fiscal year or the interim period through June 28, 2021.
Guidance, Outlook, and Risks
The filing does not provide financial guidance, outlook, or management commentary on future operations. The primary risk context provided relates to the previously disclosed lack of effective internal control over financial reporting as of the end of 2020. No new reportable events or disagreements were identified during the transition period.
Investor Verification Checklist
- Verify the status of the internal control over financial reporting remediation plan following the 2020 opinion.
- Review the attached letter from BDO USA, LLP (Exhibit 16.1) for any additional clarifications or disagreements not explicitly detailed in the main text.
- Confirm the effective date of KPMG's engagement and the scope of their initial review.