Business Context and Reporting Period
This Form 8-K Current Report was filed by Target Hospitality Corp. on May 1, 2019, regarding an event that occurred on April 26, 2019. The Company is incorporated in Delaware and identifies as an emerging growth company.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on a corporate governance change regarding the independent auditor.
Material Changes
The primary material change disclosed is the replacement of the Company's independent registered public accounting firm. On April 26, 2019, the Audit Committee approved the appointment of Ernst & Young LLP (E&Y) to perform independent audit services for the fiscal year ending December 31, 2019, effective immediately. This engagement includes a review of the financial statements for the quarterly period ended March 31, 2019.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding future performance. Regarding risks and contingencies, the Company explicitly stated that during the fiscal years ended December 31, 2018 and 2017, and through April 26, 2019, there were no consultations with E&Y regarding accounting principles, audit opinions, or any matters subject to disagreement or reportable events.
Investor Verification Checklist
- Verify the effective date of the new auditor engagement (April 26, 2019).
- Confirm the scope of E&Y's engagement includes the fiscal year 2019 audit and the Q1 2019 review.
- Review prior filings to identify the name of the former independent auditor being replaced.
- Check for any subsequent filings detailing the reasons for the change in certifying accountant.