Business Context and Reporting Period
This Form 8-K Current Report is filed by Eastman Kodak Company (KODK) on March 26, 2020, regarding events occurring on March 24, 2020, and March 26, 2020. The filing addresses a change in the Company's independent registered public accounting firm.
Key Financial Metrics
The filing does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. However, it notes that the audit reports for the fiscal years ended December 31, 2019, and December 31, 2018, contained a paragraph stating there was substantial doubt about the Company's ability to continue as a going concern.
Material Changes
- Dismissal of Auditor: On March 24, 2020, the Company dismissed PricewaterhouseCoopers LLP (PwC) as its independent registered public accounting firm. This action was approved by the Audit Committee.
- Engagement of New Auditor: On March 26, 2020, the Company engaged Ernst & Young LLP (EY) as its independent registered public accounting firm, effective immediately, following a competitive process.
- Audit History: There were no disagreements with PwC regarding accounting principles, practices, or auditing scope during the 2018 and 2019 fiscal years or through March 24, 2020.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future operations, or specific risk factors beyond the previously disclosed "substantial doubt" regarding the Company's ability to continue as a going concern found in prior audit reports. No unusual items or contingencies are detailed in this specific report.
Investor Verification Checklist
- Verify the reasons for the dismissal of PwC and the selection of EY, as no specific disagreements were cited in the filing.
- Review the attached Exhibit 16.1 (PwC's letter to the SEC) to confirm their agreement with the Company's disclosures.
- Assess the current status of the "substantial doubt" regarding the Company's going concern status mentioned in the 2018 and 2019 audit reports.
- Confirm the effective date of the new audit engagement with EY (March 26, 2020).