Business Context and Reporting Period
Company: AgEagle Aerial Systems Inc. (UAVS)
Filing Type: Form 8-K (Current Report)
Date of Report: December 11, 2020
Reporting Period: The filing addresses events occurring on December 11, 2020, regarding the change of independent registered public accountants.
Key Financial Metrics
This filing is a current report regarding a corporate governance event and does not contain financial statements, revenue, profit, cash flow, margin, debt, or liquidity data. The filing text does not provide a clear value for any financial metric.
Material Changes
- Accountant Change: On December 11, 2020, the Company dismissed D. Brooks & Associates CPAs ("D. Brooks") as its independent registered public accountants.
- New Engagement: On the same date, the Company engaged WithumSmith+Brown, PC ("WSB") as its new independent registered public accountants, effective immediately upon the termination of D. Brooks.
- Audit Committee Approval: The engagement of WSB was approved by the Audit Committee of the Board of Directors.
Guidance, Outlook, and Risks
Management Commentary on Prior Auditor:
- D. Brooks' reports for fiscal years ended December 31, 2019, and 2018 did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- There were no disagreements with D. Brooks on accounting principles, financial statement disclosure, or auditing scope/procedures during the fiscal years 2018-2019 and through December 11, 2020.
- No "reportable events" as defined in Item 304(a)(1)(v) of Regulation S-K occurred during the relevant periods.
Consultation with New Auditor:
- The Company did not consult with WSB regarding accounting principles, audit opinions, or matters involving disagreements or reportable events prior to their engagement.
Unusual Items: The filing includes a letter from D. Brooks (Exhibit 16.1) responding to the Company's statements regarding the change in auditors.
Investor Verification Checklist
- Verify the content of the letter from D. Brooks & Associates (Exhibit 16.1) to confirm they agree with the Company's statements regarding the dismissal.
- Review the Audit Committee's minutes or subsequent disclosures to understand the strategic rationale for switching accounting firms.
- Monitor upcoming financial filings (10-K or 10-Q) prepared by WithumSmith+Brown, PC to assess the quality of the new audit opinion.