Business Context and Reporting Period
This Form 8-K is filed by Tengasco, Inc. (not Riley Exploration Permian, Inc.) with a report date of May 31, 2005. The filing discloses a change in the company's independent certifying accountant.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on audit-related disclosures.
Material Changes
- Dismissal of Previous Auditor: The company dismissed BDO Seidman LLP as its independent accountant on May 31, 2005, following a review of outside audit requirements.
- Engagement of New Auditor: The company engaged Rodefer Moss & Co, PLLC of Knoxville, Tennessee, as its new independent auditors effective May 31, 2005.
- Audit History: BDO's audit reports for the years ended December 31, 2003, and 2004 were qualified due to uncertainty regarding the company's ability to continue as a going concern. No adverse opinions or disclaimers were issued.
Outlook, Risks, and Contingencies
- Material Weakness in Internal Controls: BDO previously identified a material weakness in internal controls over financial reporting on November 12, 2004. This involved an error in calculating the estimated fair value of mandatory preferred stock under SFAS No. 150.
- Remediation: Management determined the error stemmed from the implementation of complex new accounting standards. The company has remediated the weakness through continuing education and professional development of accounting staff.
- No Disagreements: There were no disagreements with BDO regarding accounting principles, practices, or auditing scope during the relevant periods.
- Consultation with New Auditor: The company did not consult with Rodefer Moss regarding accounting principles, audit opinions, or matters of disagreement with the former auditor prior to engagement.
Investor Verification Checklist
- Verify the identity of the registrant as Tengasco, Inc. and confirm the dismissal of BDO Seidman LLP.
- Review the letter from BDO Seidman LLP (Exhibit 16.1) to confirm their agreement with the statements regarding the change in auditors.
- Examine the company's most recent 10-K and 10-Q filings to assess the status of the "going concern" qualification and the remediation of internal control weaknesses.
- Confirm the qualifications and independence of the new auditor, Rodefer Moss & Co, PLLC.