Business Context and Reporting Period
This Form 8-K Current Report was filed by ONE Group Hospitality, Inc. on March 22, 2019. The filing addresses a change in the Company's independent registered public accounting firm.
Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report is a disclosure of a corporate governance event rather than a financial performance report.
Material Changes
- Accountant Change: The Company terminated its engagement with Plante & Moran, PLLC and approved the engagement of Plante Moran, P.C. as its independent registered public accounting firm.
- Reason for Change: The switch was necessitated by New York State licensing requirements, which mandate that all owners of an accounting firm performing audits in the state must be certified public accountants or public accountants. Plante Moran, P.C. is the affiliated entity licensed to perform these services in New York.
- Continuity: The audit engagement team remains the same following the switch.
Guidance, Outlook, and Risks
- Audit Status: Plante & Moran, PLLC had not completed the audit of the Company as of the termination date.
- Disagreements: There were no disagreements with the former auditor regarding accounting principles, financial statement disclosures, or auditing scope.
- Consultations: The Company did not consult with the new auditor (Plante Moran, P.C.) regarding accounting principles or reportable events prior to engagement.
Key Facts for Investor Verification
- Verify that the audit engagement team remains consistent despite the change in the legal entity of the accounting firm.
- Confirm the status of the fiscal year ending December 31, 2018, audit, which was incomplete at the time of the filing.
- Note that the change was administrative (licensing compliance) rather than due to financial disputes or disagreements.