Business Context and Reporting Period
This Form 8-K is a current report filed by Digital Ally, Inc. (not Kustom Entertainment, Inc.) on April 10, 2015. The filing addresses a change in the company's independent registered public accounting firm.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document is strictly procedural regarding the appointment of an auditor.
Material Changes
- Appointment of New Auditor: The Audit Committee approved the engagement of McGladrey LLP as the independent registered public accounting firm effective April 10, 2015.
- Dismissal of Prior Auditor: Grant Thornton, LLP was dismissed as the independent registered public accounting firm on the same date.
- Audit History: Grant Thornton's reports for the fiscal years ended December 31, 2014, and 2013 were unqualified and did not contain adverse opinions, disclaimers, or modifications regarding uncertainty, scope, or accounting principles.
- No Disagreements: There were no disagreements with Grant Thornton on accounting principles, practices, or auditing scope during the relevant periods.
Guidance, Outlook, and Risks
The filing contains no management guidance, financial outlook, or discussion of business risks. It confirms that the company consulted with the new auditor (McGladrey) only after the engagement was approved and that the former auditor (Grant Thornton) agreed with the company's statements regarding the dismissal.
Investor Verification Checklist
- Verify the effective date of the new auditor engagement (April 10, 2015).
- Confirm that the prior auditor's reports for 2013 and 2014 were unqualified.
- Review Exhibit 99.1 for the full text of Grant Thornton's response letter.
- Note that this filing does not impact the company's financial statements for the periods already audited.