Business Context and Reporting Period
This Form 8-K was filed by Processa Pharmaceuticals, Inc. (formerly Heatwurx, Inc.) on October 31, 2017. The report discloses 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 former auditor's reports for the years ended December 31, 2016, and 2015 included an indication of substantial doubt regarding the Company's ability to continue as a going concern.
Material Changes
- Dismissal of Auditor: On October 31, 2017, the Board of Directors dismissed Pritchett, Siler & Hardy, P.C. as the independent registered public accounting firm.
- Engagement of New Auditor: On October 31, 2017, the Company engaged BD & Co. as its new independent registered public accounting firm.
- Audit Disagreements: The Company reported no disagreements with the former auditor regarding accounting principles, practices, or auditing scope during the relevant periods.
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 in prior audit reports. The primary focus is the administrative change in audit oversight.
Investor Verification Checklist
- Verify the reasons for the dismissal of Pritchett, Siler & Hardy, P.C. by reviewing the accompanying letter from the former auditor (Exhibit 16.1).
- Confirm the scope of the engagement with the new auditor, BD & Co., and their expected timeline for future audits.
- Review the most recent financial statements to assess the current status of the "substantial doubt" regarding the Company's ability to continue as a going concern.
- Check for any subsequent filings that may detail the financial impact of the auditor transition.