Business Context and Reporting Period
This Form 8-K Current Report was filed by Flotek Industries, Inc. on July 7, 2010. The report discloses a material 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 the external auditor.
Material Changes Versus Prior Period
- Dismissal of Auditor: On July 7, 2010, the company dismissed its former independent registered public accounting firm, UHY LLP.
- Approval: The dismissal was approved by the Audit Committee of the Board of Directors.
- Engagement of New Auditor: On July 8, 2010, the company engaged Hein & Associates LLP to serve as its new independent registered public accounting firm for the 2010 fiscal year.
Management Commentary, Risks, and Contingencies
Audit History and Disagreements:
- UHY LLP's reports for the years ended December 31, 2009, and December 31, 2008, did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- There were no disagreements between the Company and UHY LLP on accounting principles, practices, financial statement disclosures, or auditing scope/procedures during the relevant periods.
- No reportable events as defined in Item 304(a)(1)(v) of Regulation S-K occurred.
Consultations with New Auditor:
- Neither the Company nor anyone acting on its behalf consulted Hein & Associates LLP regarding the application of accounting principles to specified transactions or the type of audit opinion that might be rendered prior to their engagement.
Important Facts for Investor Verification
- Verify the rationale for the change in auditors, as no disagreements were reported in this filing.
- Confirm the transition timeline between UHY LLP and Hein & Associates LLP for the 2010 fiscal year.
- Review the attached Exhibit 16.1 (Letter from UHY LLP) for any additional context regarding the dismissal.
- Monitor future filings for the first audit opinion issued by Hein & Associates LLP.