Business Context and Reporting Period
This Form 8-K Current Report is filed by Digital Ally, Inc. (not Kustom Entertainment, Inc.) on April 6, 2010. The report discloses a change in the company's independent registered public accounting firm effective April 2, 2010.
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 audit firm.
Material Changes
- Appointment of New Auditor: The Audit Committee engaged Grant Thornton LLP as the new independent registered public accounting firm.
- Dismissal of Prior Auditor: McGladrey & Pullen, LLP was dismissed as the independent registered public accounting firm.
- Audit History: McGladrey's reports for fiscal years ended December 31, 2009, and 2008 contained no adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- Disagreements: There were no disagreements with McGladrey on accounting principles, practices, or auditing scope during the relevant periods.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding future performance. No specific risks or contingencies related to financial operations are disclosed in this document. The transition was conducted without prior consultation between the company and Grant Thornton regarding accounting principles or audit opinions for the 2008 and 2009 periods.
Investor Verification Checklist
- Verify the company name is Digital Ally, Inc. (Nevada corporation), not Kustom Entertainment, Inc.
- Confirm the effective date of the auditor change is April 2, 2010.
- Review Exhibit 99.1 for the full text of McGladrey & Pullen, LLP's response letter agreeing with the company's disclosures.
- Note that no reportable events or disagreements occurred with the former auditor.