Business Context and Reporting Period
This Form 8-K Current Report was filed by Loop Industries, Inc. on August 16, 2017. The report discloses a change in the Company's independent registered public accounting firm.
Key Financial Metrics
This filing does not contain revenue, profit, cash flow, margin, debt, or liquidity metrics. It is a disclosure regarding auditor changes rather than a financial results report.
Material Changes
- Dismissal of Auditor: On August 16, 2017, the Company dismissed Weinberg & Company, P.A. as its independent registered public accounting firm, effective immediately.
- Appointment of New Auditor: On August 16, 2017, the Board of Directors approved the engagement of PricewaterhouseCoopers LLP (PwC) as the new independent registered public accounting firm, effective immediately.
- Audit History: Weinberg's audit reports for fiscal years ended February 28, 2017, and February 29, 2016, did not contain adverse opinions or disclaimers. However, the report for the fiscal year ended February 29, 2016, included an explanatory paragraph expressing substantial doubt regarding the Company's ability to continue as a going concern.
- Disagreements: There were no disagreements between the Company and Weinberg regarding accounting principles, practices, financial statement disclosures, or auditing scope/procedures during the relevant periods.
Guidance, Outlook, and Risks
The filing does not provide financial guidance, outlook, or management commentary on future operations. The primary risk disclosed is the historical "substantial doubt" regarding the Company's ability to continue as a going concern noted in the prior auditor's report for the fiscal year ended February 29, 2016. The Company confirmed no "reportable events" occurred during the tenure of the former auditor.
Investor Verification Checklist
- Verify the reasons for the change in auditors by reviewing the letter from Weinberg & Company, P.A. filed as Exhibit 16.1.
- Confirm the status of the "going concern" qualification noted in the 2016 audit report and whether it has been resolved.
- Review subsequent filings to confirm PwC's initial audit opinion and any new disclosures regarding the Company's financial stability.