Business Context and Reporting Period
Company: Gold Resource Corporation (GORO)
Filing Type: Form 8-K (Current Report)
Date of Report: March 14, 2022
Reporting Period: Immediate event disclosure regarding a change in the independent registered public accounting firm.
Key Financial Metrics
This filing is a current report regarding a corporate governance event and does not contain financial performance data. The document does not provide values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes
- Accountant Change: Plante & Moran, PLLC has declined to stand for re-appointment as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2022.
- Audit History: Reports for fiscal years 2020 and 2021 contained no adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- Disagreements: No disagreements existed between the Company and Plante & Moran on accounting principles, practices, or disclosures during the 2020 and 2021 audits.
- Internal Control Weakness: A material weakness in internal control over financial reporting was identified as of December 31, 2021, specifically related to the accounting for the Aquila Resources Inc. acquisition.
Guidance, Outlook, and Risks
- Outlook: The Company has commenced a Request for Proposal (RFP) process to evaluate candidates for a new independent registered public accounting firm.
- Next Steps: The Company will disclose the engagement of a new firm once the selection process is complete.
- Risks/Contingencies: The primary risk highlighted is the existing material weakness in internal controls related to the Aquila Resources Inc. acquisition, which was noted in the prior year's audit opinion.
Investor Verification Checklist
- Verify the timeline for the selection and engagement of the new independent registered public accounting firm.
- Review the specific details of the material weakness regarding the Aquila Resources Inc. acquisition and the Company's remediation plan.
- Confirm the content of the letter from Plante & Moran (Exhibit 16.1) to ensure they agree with the Company's disclosure regarding the departure.
- Monitor future filings for the appointment of the new auditor and any impact on the audit of the 2022 fiscal year.