Business Context and Reporting Period
This Form 8-K is filed by Portman Ridge Finance Corporation (noted as BCP Investment Corp in metadata) for the reporting period of May 9, 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. This report focuses exclusively on corporate governance regarding the external auditor.
Material Changes
- Dismissal of Auditor: On May 9, 2019, the Audit Committee dismissed Ernst & Young LLP (EY) as the independent registered public accounting firm, effective immediately.
- Engagement of New Auditor: Effective May 9, 2019, the Audit Committee engaged KPMG LLP to serve as the new independent registered public accounting firm.
- Audit History: EY's audit reports for fiscal years ended December 31, 2018, and 2017 were unqualified and contained no adverse opinions or disclaimers.
Management Commentary and Risks
Management confirmed that during the fiscal years ended December 31, 2018 and 2017, and through May 9, 2019, there were no disagreements with EY regarding accounting principles, financial statement disclosures, or audit scope. Additionally, no "reportable events" occurred as defined by Regulation S-K. The company also confirmed no prior consultations with KPMG regarding accounting principles or potential disagreements prior to their engagement.
Investor Verification Checklist
- Verify the effective date of the auditor transition (May 9, 2019).
- Review Exhibit 16.1 (EY's letter) to confirm the auditor's agreement with the company's statements regarding the dismissal.
- Confirm the absence of any undisclosed disagreements or reportable events during the tenure of the previous auditor.
- Note the company's securities: Common Stock (PTMN) and 6.125% Notes due 2022 (KCAPL) trading on the NASDAQ Global Select Market.