Business Context and Reporting Period
This Form 8-K was filed by Lantronix, Inc. on December 8, 2011, reporting events occurring on December 2, 2011. The filing addresses a change in the Company's independent registered public accounting firm.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on the administrative change of auditors.
Material Changes
- Dismissal of Auditor: On December 2, 2011, the Audit Committee dismissed McGladrey & Pullen, LLP as the independent registered public accounting firm.
- Reason for Dismissal: The decision was made to reduce the Company's audit fees.
- Engagement of New Auditor: Squar, Milner, Peterson, Miranda & Williamson, LLP was appointed as the new independent registered public accounting firm, effective December 2, 2011.
Management Commentary and Risks
Audit History: The reports issued by McGladrey for the fiscal years ended June 30, 2010, and June 30, 2011, contained no adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
Disagreements: There were no disagreements with McGladrey on accounting principles, practices, or auditing scope during the two most recent fiscal years or the period from July 1, 2011, through December 8, 2011.
Reportable Events: No "reportable events" as defined in Item 304(a)(1)(v) of Regulation S-K occurred during the relevant periods.
Consultation with New Auditor: The Company did not consult with Squar Milner regarding accounting principles, audit opinions, or matters of disagreement prior to their engagement.
Investor Verification Checklist
- Verify the letter from McGladrey & Pullen, LLP (Exhibit 16.1) to confirm they agree with the Company's statements regarding the dismissal.
- Confirm the effective date of the new auditor, Squar Milner, is December 2, 2011.
- Review future filings to assess the impact of the auditor change on audit fees and financial reporting timelines.