Business Context and Reporting Period
This Form 8-K is a current report filed by Stride, Inc. on August 15, 2024. The filing discloses a change in the company's independent registered public accounting firm. Stride, Inc. is incorporated in Delaware and its common stock trades on the New York Stock Exchange under the symbol LRN.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document is strictly procedural regarding the appointment of an auditor.
Material Changes
- Accountant Change: The Audit Committee approved the engagement of KPMG LLP as the independent registered public accounting firm for the fiscal year ending June 30, 2025.
- Dismissal of Prior Auditor: BDO USA, P.C. was dismissed as the independent registered public accounting firm, effective immediately on August 15, 2024.
- Historical Audit Opinions: BDO's reports for the fiscal years ended June 30, 2024, and June 30, 2023, did not contain adverse opinions on financial statements. However, BDO expressed an adverse opinion on internal control over financial reporting as of June 30, 2023, due to a material weakness in information technology general controls (user access, program change, and data processing).
- Disagreements: There were no disagreements between the Company and BDO regarding accounting principles, practices, or auditing scope during the relevant periods.
Guidance, Outlook, and Risks
The filing does not provide financial guidance, outlook, or management commentary on future performance. The primary risk disclosed relates to the previously identified material weakness in internal controls over financial reporting, which resulted in an adverse opinion from the former auditor. The filing confirms that no "reportable events" occurred other than this known material weakness.
Investor Verification Checklist
- Verify the status of remediation efforts regarding the material weakness in IT general controls identified by BDO in 2023.
- Review the letter from BDO USA, P.C. (Exhibit 16.1) to confirm their agreement with the disclosures regarding the dismissal.
- Monitor future filings (e.g., 10-Q or 10-K) for KPMG's initial assessment of internal controls and financial reporting.
- Confirm that no undisclosed disagreements or reportable events exist between the company and the new auditor, KPMG.