Business Context and Reporting Period
This Form 8-K is filed by ID Global Solutions Corporation (not Authid Inc.) for the reporting period ending December 31, 2015, with the report date of January 7, 2016. The filing primarily 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. However, it notes that the former auditor's reports for the years ended December 31, 2014, and 2013, contained an explanatory paragraph indicating substantial doubt about the Company's ability to continue as a going concern.
Material Changes
- Dismissal of Former Auditor: On January 6, 2016, the Board of Directors dismissed Anton & Chia, LLP as the independent registered public accounting firm.
- Engagement of New Auditor: On December 31, 2015, the Board engaged Cherry Bekaert LLP as the new independent registered public accounting firm for the fiscal year ended December 31, 2015.
- Audit Disagreements: The Company reported no disagreements with the former auditor regarding accounting principles, practices, or audit scope for the years 2013 and 2014.
Outlook, Risks, and Management Commentary
The filing highlights a significant risk factor: the former auditor's reports for 2013 and 2014 included a "going concern" qualification, suggesting substantial doubt about the company's ability to continue operations. There were no consultations with the new auditor regarding accounting principles or reportable events prior to their engagement. The decision to change auditors was approved by the Board of Directors.
Investor Verification Checklist
- Verify the reasons for dismissing Anton & Chia, LLP, despite the lack of reported disagreements.
- Review the "going concern" qualification in the 2013 and 2014 financial statements to assess current liquidity risks.
- Confirm the status of the new auditor, Cherry Bekaert LLP, and their initial findings for the 2015 fiscal year.
- Check for any subsequent filings that provide updated financial data or resolve the going concern uncertainty.