Business Context and Reporting Period
This Form 8-K Current Report was filed by Astrotech Corp on May 14, 2019. The filing addresses a change in the company's independent registered public accounting firm.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. However, it notes that the outgoing auditor, BDO USA, LLP, included an explanatory paragraph in its report for the fiscal year ended June 30, 2018, indicating substantial doubt about the Company's ability to continue as a going concern.
Material Changes
- Dismissal of Auditor: On May 14, 2019, the Audit Committee dismissed BDO USA, LLP as the independent registered public accounting firm, effective immediately.
- Appointment of New Auditor: On the same date, the Company appointed Armanino, LLP as the new independent registered public accounting firm for the fiscal year ending June 30, 2019.
- Audit History: BDO's reports for fiscal years ended June 30, 2018, and June 30, 2017, contained no adverse opinions, disclaimers, or qualifications regarding accounting principles or audit scope, aside from the going concern note for 2018.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future operations, or specific risk factors beyond the historical going concern qualification noted above. The company confirmed there were no "disagreements" or "reportable events" with BDO regarding accounting principles, financial statement disclosure, or auditing scope during the two most recent fiscal years and the subsequent interim period.
Investor Verification Checklist
- Verify the reasons for the auditor change, as the outgoing auditor had previously expressed substantial doubt about the company's going concern status.
- Review the letter from BDO USA, LLP (Exhibit 16.1) attached to the filing to confirm their agreement with the company's statements regarding the dismissal.
- Monitor upcoming financial filings to assess whether the new auditor, Armanino, LLP, issues a similar going concern qualification.
- Confirm the company's current liquidity position given the historical going concern warning.