Business Context and Reporting Period
This Form 8-K is filed by MassRoots, Inc. (not Greenwave Technology Solutions, Inc.) on January 21, 2016, reporting events that occurred on January 16, 2016. The filing addresses a change in the company's independent registered public accounting firm.
Key Financial Metrics
This filing does not contain specific financial data such as revenue, profit, cash flow, margins, debt, or liquidity figures. The document notes that prior audit reports for the years ended December 31, 2013, and 2014 included an indication of substantial doubt about the Company's ability to continue as a going concern.
Material Changes
- Dismissal of Accountant: The Board of Directors terminated the engagement with L&L CPAS, PA effective immediately on January 16, 2016.
- Engagement of New Accountant: The Board engaged Liggett, Vogt & Webb P.A. as the new independent registered public accounting firm effective immediately.
- Scope of New Engagement: The new firm will audit financial statements for the fiscal year ended December 31, 2015, and conduct ongoing quarterly reviews.
Management Commentary, Risks, and Contingencies
Disagreements and Reportable Events: The Company states there were no disagreements with the former accountant (L&L) regarding accounting principles, financial statement disclosure, or auditing scope during the review period (2013 through January 16, 2016). There were also no "reportable events" as defined by Regulation S-K.
Consultation with New Accountant: The Company confirms it did not consult with the new accountant (Liggett, Vogt & Webb) regarding accounting principles or audit opinions prior to their engagement.
Going Concern Risk: The filing reiterates that previous audit reports contained a qualification regarding the Company's ability to continue as a going concern.
Investor Verification Checklist
- Verify the reason for the dismissal of L&L CPAS, PA, as the filing states no disagreements occurred.
- Review the upcoming Form 8-K/A to see if L&L CPAS, PA agrees with the Company's statements regarding the dismissal.
- Monitor the upcoming 2015 audit report from Liggett, Vogt & Webb P.A. for any changes to the "going concern" qualification.
- Confirm the Company's current liquidity status given the historical going concern warnings.