Business Context and Reporting Period
This Form 8-K Current Report was filed by Aerovironment, Inc. on April 16, 2019. The report addresses a corporate governance matter regarding the selection of the Company's independent registered public accounting firm for the fiscal year ending April 30, 2020.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on the change in the Company's certifying accountant.
Material Changes
- Termination of Prior Auditor: The Audit Committee determined not to reappoint Ernst & Young LLP (EY) as the independent registered public accounting firm effective for the fiscal year ending April 30, 2020.
- Appointment of New Auditor: Deloitte & Touche LLP (Deloitte) was appointed as the independent registered public accounting firm effective May 1, 2019.
- Transition Details: EY will complete the audit for the fiscal year ending April 30, 2019. Deloitte will perform the review of the interim quarterly period ending July 27, 2019.
Guidance, Outlook, and Risks
Management Commentary: The Audit Committee conducted a competitive process to select the new firm. There were no disagreements with EY regarding accounting principles, financial statement disclosure, or auditing scope during the fiscal years ended April 30, 2018 and 2017, or the interim period through April 16, 2019. No "reportable events" occurred as defined in Regulation S-K.
Shareholder Action: Stockholders will be asked to ratify the selection of Deloitte at the 2019 annual meeting of stockholders.
Risks and Contingencies: The filing does not disclose new financial risks or contingencies beyond the standard transition of audit firms.
Investor Verification Checklist
- Verify the ratification of Deloitte & Touche LLP at the upcoming 2019 annual meeting of stockholders.
- Review the letter from Ernst & Young LLP (Exhibit 16.1) to confirm their agreement with the Company's statements regarding the departure.
- Monitor the upcoming interim quarterly review report by Deloitte for the period ending July 27, 2019.
- Confirm the final issuance of the EY audit report for the fiscal year ended April 30, 2019.