Business Context and Reporting Period
This Form 8-K was filed by Workhorse Group Inc. on April 5, 2018. The report details a change in the Company's independent registered public accounting firm, approved by the Audit Committee and Board of Directors.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures. However, it notes that the former auditor's reports for the years ended December 31, 2017, and 2016 contained a paragraph stating there was substantial doubt about the Company's ability to continue as a going concern.
Material Changes
- Dismissal of Former Auditor: On April 5, 2018, Workhorse Group Inc. dismissed Clark, Schaefer, Hackett & Co. as its independent registered public accounting firm.
- Engagement of New Auditor: On the same date, the Company engaged Grant Thornton LLP as its new independent registered public accounting firm for the fiscal year ending December 31, 2018.
- Audit Disagreements: The Company reported no disagreements with the former auditor regarding accounting principles, practices, or audit scope during the relevant periods.
Outlook, Risks, and Contingencies
The primary risk highlighted in the filing is the "substantial doubt about the Company's ability to continue as a going concern" noted in prior audit reports. The filing confirms no consultations with the new auditor regarding accounting principles or reportable events prior to engagement. A letter from the former auditor agreeing with the statements in this report is attached as Exhibit 16.1.
Investor Verification Checklist
- Verify the reasons for the dismissal of Clark, Schaefer, Hackett & Co. beyond the standard disclosure.
- Review the attached letter from the former auditor (Exhibit 16.1) for any additional commentary.
- Assess the current status of the "going concern" uncertainty mentioned in prior audit reports.
- Confirm the scope of work assigned to Grant Thornton LLP for the 2018 fiscal year.