Business Context and Reporting Period
This Form 8-K filing by Gold Resource Corporation (Colorado) was submitted on March 21, 2016, with a report date of March 23, 2016. The filing addresses Item 4.01, reporting a change in the Company's certifying accountant.
Key Financial Metrics
This filing does not contain revenue, profit, cash flow, margin, debt, or liquidity metrics. It references the Company's Annual Report on Form 10-K filed on March 9, 2016, for the fiscal year ended December 31, 2015, but does not reproduce those financial figures.
Material Changes
- Accountant Change: The Board of Directors approved the engagement of EKS&H LLLP as the independent registered public accounting firm for the fiscal year ending December 31, 2016.
- Dismissal of Prior Auditor: KPMG LLP was simultaneously dismissed as the independent registered public accounting firm.
- Audit Status: KPMG completed its audit for the year ended December 31, 2015, and issued its report. No disagreements regarding accounting principles or auditing scope occurred during the two most recent fiscal years or the interim period through March 21, 2016.
Outlook, Risks, and Contingencies
- Remediated Material Weakness: The filing discloses a material weakness in internal control over financial reporting as of December 31, 2014, related to the accounting for income taxes (including provisions and related assets/liabilities).
- Remediation Status: Management concluded that as of December 31, 2015, the material weakness was remediated following the completion of documentation and testing of corrective actions.
- Audit Opinions: KPMG's audit reports for 2014 and 2015 did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, scope, or accounting principles, though the 2014 report included an explanatory paragraph regarding the ineffective internal control over income taxes.
- New Auditor Consultations: The Company has not consulted with EKS&H regarding accounting principles, audit opinions, or reportable events during the relevant periods.
Investor Verification Checklist
- Verify the details of the material weakness remediation regarding income tax accounting in the Form 10-K filed March 9, 2016.
- Review the letter from KPMG LLP (Exhibit 16.1) to confirm their agreement with the Company's statements regarding the dismissal and lack of disagreements.
- Confirm the transition timeline and scope of work for the new auditor, EKS&H LLLP, for the 2016 fiscal year.
- Check subsequent filings for any new material weaknesses or changes in internal controls over financial reporting.