Business Context and Reporting Period
This Form 8-K Current Report is filed by First American Group Inc. (not Loop Industries, Inc., as indicated in the metadata) for the reporting period of July 2, 2015. The registrant is incorporated in Nevada and maintains its principal executive offices in Los Angeles, California.
Key Financial Metrics
The filing does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity for the current period. However, it references historical audit reports for the years ended September 30, 2014, and 2013, which contained a substantial doubt about the Company's ability to continue as a going concern.
Material Changes
The primary material change reported is the change in the registrant's certifying accountant:
- Dismissal: MaloneBailey, LLP was dismissed as the independent registered public accounting firm on July 2, 2015.
- Appointment: Li and Company, PC was engaged as the new independent registered public accounting firm on July 2, 2015.
- Audit History: The former auditor's reports for 2013 and 2014 were unqualified regarding accounting principles but included a going concern qualification. There were no disagreements between the Company and MaloneBailey regarding accounting principles, practices, or audit scope.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future operations, or specific risk factors beyond the historical going concern warning noted in prior audit reports. The document confirms that no reportable events or disagreements occurred between the Company and the former auditor during the two most recent fiscal years or the interim period.
Investor Verification Checklist
- Verify the reason for the dismissal of MaloneBailey, LLP, given the prior "going concern" qualification.
- Confirm the engagement terms and independence of the new auditor, Li and Company, PC.
- Review the attached Exhibit 16.1 (Letter from MaloneBailey) for any additional context on the dismissal.
- Assess the Company's current liquidity status to determine if the "going concern" risk persists.