Business Context and Reporting Period
This Form 8-K Current Report was filed by Loop Industries, Inc. on April 4, 2016. The filing addresses 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 for the current period. However, it notes that the former auditor's reports for the period from inception (October 23, 2014) through February 28, 2015, included a statement regarding substantial doubt about the Company's ability to continue as a going concern.
Material Changes
- Dismissal of Auditor: On April 4, 2016, Loop Industries, Inc. dismissed Li and Company, PC as its independent registered public accounting firm.
- Appointment of New Auditor: On the same date, the Board of Directors engaged Weinberg & Company, P.A. as the new independent registered public accountants.
- Audit History: The reports issued by Li and Company contained no adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles, aside from the going concern qualification.
Management Commentary and Risks
Management confirmed there were no disagreements with the former auditor, Li and Company, regarding accounting principles, practices, financial statement disclosures, or auditing scope. Consequently, no reportable events under Regulation S-K Item 304(a)(1)(v) occurred. The primary risk highlighted in the context of the audit change is the previously noted substantial doubt regarding the company's ability to continue as a going concern.
Investor Verification Checklist
- Verify the reasons for the dismissal of Li and Company, PC beyond the standard disclosure.
- Review the attached letter from Li and Company (Exhibit 16.1) for any additional commentary on the dismissal.
- Confirm the status of the "substantial doubt" regarding the company's ability to continue as a going concern in subsequent filings.
- Monitor future financial statements prepared by the new auditor, Weinberg & Company, P.A.