Business Context and Reporting Period
This Form 8-K is filed by Concierge Technologies, Inc. (not Marygold Companies, Inc.) on April 6, 2017. The report discloses a change in the registrant's certifying accountant. The Company's fiscal year ends on June 30.
Key Financial Metrics
This filing is a current report regarding corporate governance and does not contain financial statements. Consequently, the filing text does not provide clear values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes
- Dismissal of Prior Auditor: The Board approved the dismissal of Kabani & Company, Inc. effective April 3, 2017. Kabani audited the fiscal years ended June 30, 2015, and 2016.
- Engagement of New Auditor: The Company engaged BPM LLP as the new independent registered public accounting firm effective April 3, 2017, to audit the fiscal year ending June 30, 2017.
- Audit History: Reports issued by Kabani for 2015 and 2016 contained no adverse opinions, disclaimers, or qualifications. There were no disagreements with Kabani regarding accounting principles or audit scope during their tenure.
Outlook, Risks, and Management Commentary
The selection of BPM LLP was driven by an effort to leverage existing services provided to the Company's subsidiaries, specifically Wainwright Holdings, Inc. and United States Commodity Funds LLC (USCF). BPM has previously audited these subsidiaries and assisted with review procedures for the quarter ended December 31, 2016. The Company sought BPM's expertise in auditing companies taxed as regulated investment companies. No reportable events or disagreements were identified during the transition.
Investor Verification Checklist
- Verify the letter from Kabani & Company, Inc. (Exhibit 16.1) to confirm no undisclosed disagreements or reportable events.
- Confirm the scope of BPM LLP's engagement for the fiscal year ending June 30, 2017.
- Review the relationship between Concierge Technologies, Inc. and its subsidiaries (Wainwright/USCF) to understand the rationale for the auditor switch.
- Note that this filing contains no financial performance data; refer to the most recent 10-K or 10-Q for financial metrics.