Business Context and Reporting Period
This Form 6-K filing is submitted by SGOCO Group, Ltd., a foreign private issuer, for the month of May 2012. The report was dated May 18, 2012, and signed by Burnette Or, Chief Executive Officer. The filing addresses a significant corporate governance event rather than routine financial reporting.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. No financial statements or performance metrics are included in this specific report.
Material Changes
The primary material change disclosed is the resignation of the Company's independent registered public accountant, Grant Thornton, China member firm of Grant Thornton International ("GT").
- Effective Date: May 14, 2012.
- Status of Audit: GT had not completed its audit or provided a report on the financial statements for the period ended December 31, 2011, or any other period prior to resignation.
- Disagreements: The Company states it will provide disclosure regarding any disagreements with GT on accounting principles, practices, or auditing scope, as well as any "reportable events" during GT's engagement.
Guidance, Outlook, and Risks
The filing does not contain management guidance, financial outlook, or specific risk factors beyond the implications of the auditor resignation. The Company notes that it will request a letter from GT addressed to the SEC stating whether the firm agrees with the Company's disclosure regarding disagreements and reportable events. This letter will be filed as an exhibit to the Annual Report or otherwise filed with the SEC promptly.
Investor Verification Checklist
- Verify the reason for Grant Thornton's resignation and whether any disagreements regarding accounting principles or auditing scope exist.
- Confirm the status of the audit for the fiscal year ended December 31, 2011, given the auditor's departure before completion.
- Monitor for the forthcoming letter from Grant Thornton to the SEC regarding the Company's disclosures.
- Check for the appointment of a new independent registered public accounting firm.