Business Context and Reporting Period
This Form 8-K is filed by Command Center, Inc. (not Hirequest, Inc.) on October 4, 2010, reporting events occurring on September 28, 2010. The registrant is incorporated in Washington with principal executive offices in Post Falls, ID.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the current period. However, it references the independent auditor's report for the fiscal year ending December 25, 2009, which included an explanatory paragraph noting substantial doubt as to the Company's ability to continue as a going concern.
Material Changes
- Auditor Termination: On September 28, 2010, the Company's independent registered accountants, DeCoria, Maichel, and Teague, P.S. (DM-T), terminated the auditor/client relationship.
- Replacement Status: As of October 4, 2010, the Board of Directors/Audit Committee had not yet taken final action to replace DM-T.
- Disagreements: The Company reported no disagreements with DM-T regarding accounting principles, practices, financial statement disclosures, or auditing scope/procedures during the two most recent fiscal years or the interim period through October 4, 2010.
Outlook, Risks, and Contingencies
The primary risk highlighted is the going concern uncertainty previously identified by the auditor for the 2009 fiscal year. The sudden termination of the auditor relationship without an immediate replacement creates a contingency regarding the timeliness of future financial reporting and audit opinions. The Company has not consulted with the former auditor regarding the type of opinion that might be rendered on future financial statements.
Investor Verification Checklist
- Verify the reason for the auditor's termination by reviewing the attached letter (Exhibit 16.1).
- Confirm the timeline for appointing a new independent registered public accounting firm.
- Assess the current status of the "substantial doubt" regarding the Company's ability to continue as a going concern.
- Check for any subsequent filings regarding the appointment of a new auditor or updated financial statements.