Business Context and Reporting Period
Company: Flotek Industries, Inc. (FTK)
Filing Type: Form 8-K (Current Report)
Date of Report: March 6, 2020
Principal Event: Change in Registrant's Certifying Accountant.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document is a disclosure regarding corporate governance and audit firm selection.
Material Changes
- Accountant Departure: Moss Adams LLP, the Company's independent registered public accounting firm, informed the Audit Committee on March 6, 2020, that it would decline to stand for re-election.
- Selection Process: The Audit Committee initiated a competitive process in late 2019 to select a new independent auditor. Requests for proposals were sent to potential candidates, including Moss Adams, on February 20, 2020.
- Audit History: Moss Adams' reports for fiscal years ended December 31, 2019, and December 31, 2018, contained no adverse opinions, disclaimers, or qualifications. There were no disagreements regarding accounting principles, practices, or audit scope during these periods.
Guidance, Outlook, and Risks
Management Commentary: The filing confirms that Moss Adams was provided with a copy of the disclosures prior to filing and requested to furnish a letter to the SEC regarding their agreement with the statements. A letter from Moss Adams dated March 9, 2020, is attached as Exhibit 16.1.
Risks and Contingencies: The filing does not disclose specific financial risks or contingencies beyond the operational necessity of engaging a new independent auditor.
Investor Verification Checklist
- Verify the identity of the new independent registered public accounting firm selected to replace Moss Adams LLP.
- Review the attached letter from Moss Adams LLP (Exhibit 16.1) to confirm their stance on the disclosures made in this report.
- Monitor subsequent filings (e.g., 10-K or 10-Q) for the impact of the auditor change on the audit timeline and financial statement release dates.