Business Context and Reporting Period
This Form 8-K Current Report was filed by Lucid Group, Inc. on May 26, 2023. The filing addresses a material change in the company's independent registered public accounting firm. Lucid Group is an emerging growth company incorporated in Delaware, with its principal executive offices in Newark, California.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. The document is strictly procedural regarding the change of auditors.
Material Changes
- Appointment of New Auditor: The Audit Committee approved the appointment of KPMG LLP as the independent registered public accounting firm, effective June 17, 2023, for the fiscal year ending December 31, 2023.
- Dismissal of Prior Auditor: Grant Thornton LLP was dismissed as the independent registered public accounting firm effective immediately upon the effectiveness of KPMG's appointment.
- Historical Service: Grant Thornton served as the auditor since the merger with Churchill Capital Corp IV on July 23, 2021, and as the auditor of the predecessor, Atieva, Inc., since October 13, 2020.
Management Commentary, Risks, and Contingencies
Consultations and Disagreements: The company confirmed that during the years ended December 31, 2022 and 2021, and through May 26, 2023:
- There were no consultations with KPMG regarding accounting principles, audit opinions, disagreements, or reportable events.
- There were no disagreements with Grant Thornton regarding accounting principles, practices, financial statement disclosure, or auditing scope/procedures.
- There were no "reportable events" as defined by Regulation S-K.
Audit Opinions: The audit reports issued by Grant Thornton for the years ended December 31, 2022 and 2021 did not contain an adverse opinion, disclaimer of opinion, or any qualification regarding uncertainty, audit scope, or accounting principles.
Investor Verification Checklist
- Verify the effective date of KPMG's engagement (June 17, 2023) and the completion of client acceptance procedures.
- Review the letter from Grant Thornton LLP (Exhibit 16.1) to confirm their agreement with the company's statements regarding the dismissal.
- Monitor future filings for the first financial statements audited by KPMG to ensure continuity in reporting standards.
- Confirm that no undisclosed disagreements or reportable events occurred during the transition period.