Business Context and Reporting Period
This Form 6-K filing by Immuron Ltd (ASX:IMC, NASDAQ:IMRN) is dated January 18, 2018, covering the month of January 2018. The report discloses a change in the Company's independent registered public accounting firm.
Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity for the current period. The document focuses exclusively on corporate governance and audit matters.
Material Changes
- Dismissal of Auditor: On December 18, 2017, Immuron Ltd dismissed Marcum LLP as its independent registered public accounting firm.
- Engagement of New Auditor: On December 18, 2017, the Audit Committee engaged Grant Thornton Audit Pty Ltd as the new independent registered public accounting firm for the fiscal year ending June 30, 2018.
- Historical Restatements: Marcum LLP's prior audit reports noted restatements for fiscal years ended June 30, 2014, 2015, and 2016. These restatements addressed errors in the classification of customer discounts, measurement of share-based payments, accounting for equity issued with convertible debt, and cash flow statement amounts. Loss per share was also restated.
- Internal Control Weaknesses: Marcum LLP identified material weaknesses in internal controls over financial reporting, specifically regarding the assessment of significant transactions and the performance of reviews and monitoring controls under International Financial Reporting Standards (IFRS).
Guidance, Outlook, and Risks
The filing does not contain financial guidance, outlook, or management commentary on business operations. The primary risk disclosed relates to the previously identified material weaknesses in internal controls over financial reporting. There were no disagreements with Marcum LLP on accounting principles or auditing scope that would have required reference in their reports, aside from the noted restatements and control weaknesses.
Key Facts for Investor Verification
- Verify the transition plan and timeline for Grant Thornton Audit Pty Ltd to complete the audit for the fiscal year ending June 30, 2018.
- Review the specific details of the restatements made for fiscal years 2014-2016 to understand the impact on historical financial comparability.
- Assess the remediation steps taken by management to address the material weaknesses in internal controls identified by the former auditor.
- Confirm the content of the letter from Marcum LLP (Exhibit 99.1) to ensure they agree with the Company's statements regarding the dismissal.