Business Context and Reporting Period
This Form 8-K filing by Radiant Logistics, Inc. (formerly Golf Two, Inc.) reports a change in independent accountants. The report date is October 26, 2006, with the filing signed on October 31, 2006.
Key Financial Metrics
This filing does not contain specific financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity figures. The document focuses exclusively on the administrative change of the external auditor.
Material Changes
- Dismissal of Former Accountant: On October 26, 2006, the Board of Directors dismissed Stonefield Josephson, Inc. as the independent accountant.
- Reason for Change: The change was driven by a desire for operational efficiency by engaging an auditor with a principal office closer to the company's headquarters and the mandatory rotation of the former audit partner under SEC rules.
- Engagement of New Accountant: On October 30, 2006, the company engaged Peterson Sullivan PLLC as the new independent accountants, pending a definitive engagement letter.
- Audit History: Audit reports for the six months ended June 30, 2006, and the year ended December 31, 2005, were unqualified. Reports for 2003 and 2004 were qualified regarding the company's ability to continue as a going concern during its prior operation as "Golf Two, Inc."
Guidance, Risks, and Contingencies
- Disagreements: The company reported no disagreements with Stonefield Josephson regarding accounting principles, financial statement disclosures, or auditing scope/procedures during the relevant periods.
- Internal Control Weakness: A material weakness in internal control over financial reporting was previously disclosed in the 2006 Form 10-KSB. This related to accounting adjustments proposed by Stonefield Josephson for the period ended September 30, 2005, during the company's former business model phase.
- Consultations: No consultations occurred with the new auditor, Peterson Sullivan, regarding accounting principles or potential audit opinions prior to their engagement.
Investor Verification Checklist
- Verify the execution of the definitive engagement letter with Peterson Sullivan PLLC.
- Review the attached Exhibit 16.1 (Stonefield Josephson's letter to the SEC) for any additional context on the dismissal.
- Confirm the status of the previously disclosed material weakness in internal controls and any remediation steps taken.
- Monitor upcoming financial filings to ensure the new auditor's initial reports are unqualified.