Business Context and Reporting Period
This Form 8-K Current Report is filed by Power REIT (Maryland) on March 13, 2014. The filing addresses a change in the Company's independent registered public accounting firm.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on corporate governance and audit firm transitions.
Material Changes
- Resignation of BDO USA, LLP: BDO resigned as the Company's independent auditor on March 13, 2014. The resignation was necessitated by an acquisition of another firm by BDO, where a member of the acquired firm provided expert witness services for a wholly owned subsidiary of Power REIT in ongoing litigation. Continuing these services would impair BDO's independence.
- Engagement of CohnReznick LLP: On March 13, 2014, the Audit Committee selected and the Board of Trustees ratified the engagement of CohnReznick LLP as the new independent registered public accounting firm for the fiscal year ending December 31, 2013.
- Audit History: BDO was engaged on July 29, 2013, and resigned approximately seven months later. BDO did not issue any reports on the Company's financial statements for fiscal years 2011, 2012, or 2013. There were no disagreements between the Company and BDO regarding accounting principles, practices, or audit scope.
Guidance, Outlook, and Risks
The filing does not provide financial guidance, outlook, or management commentary on business operations. The primary risk disclosed relates to the ongoing litigation involving a wholly owned subsidiary, which necessitated the change in auditors to maintain independence standards.
Investor Verification Checklist
- Verify the status of the ongoing litigation involving the Company's wholly owned subsidiary that impacted auditor independence.
- Confirm the transition timeline for CohnReznick LLP to complete the audit for the fiscal year ended December 31, 2013.
- Review the letter from BDO (Exhibit 16.1) to confirm their agreement with the disclosures regarding the resignation.
- Check for any subsequent filings regarding the appointment of a successor auditor if CohnReznick's engagement is delayed or terminated.