SEC Filing Summary: Intrexon Corporation (Form 8-K)
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Intrexon Corporation (trading symbol: XON) on September 10, 2019. The filing addresses a change in the registrant's certifying accountant. The company is incorporated in Virginia and its principal executive offices are located in Germantown, Maryland.
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 transition of the independent registered public accounting firm.
Material Changes and Events
- Dismissal of Prior Auditor: On September 10, 2019, the Audit Committee dismissed PricewaterhouseCoopers LLP (PwC) as the independent registered public accounting firm, effective immediately.
- Engagement of New Auditor: On September 13, 2019, Deloitte & Touche LLP (Deloitte) was engaged as the independent registered public accounting firm for the fiscal year ending December 31, 2019, effective immediately.
- Prior Audit Opinions: PwC's audit reports for the years ended December 31, 2018, and 2017 did not contain adverse opinions or disclaimers. However, the 2018 report included an explanatory paragraph expressing substantial doubt about the Company's ability to continue as a going concern.
- Disagreements and Reportable Events: There were no disagreements with PwC regarding accounting principles or auditing scope. A material weakness in internal control over financial reporting was identified in Q2 2018 related to the adoption of ASC Topic 606 (Revenue from Contracts with Customers), resulting in a restatement of the quarter ended March 31, 2018. The Company concluded this weakness was remediated as of December 31, 2018.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future operations, or specific risk factors beyond the historical context of the material weakness and the going concern qualification noted in the 2018 audit report. No consultations with Deloitte regarding accounting principles or audit opinions occurred prior to their engagement.
Investor Verification Checklist
- Verify the status of the "substantial doubt about going concern" qualification noted in the 2018 audit report and whether it has been resolved.
- Confirm the details of the restatement for the quarter ended March 31, 2018, regarding accumulated deficit, deferred revenue, and collaboration/licensing revenues.
- Review the letter from PwC (Exhibit 16.1) to ensure they agree with the statements regarding the change in accountant.
- Monitor the transition process between PwC and Deloitte for any potential delays in future financial reporting.