Filing Overview
Company: Avita Therapeutics, Inc. (now identified in the request metadata as AVITA Medical, Inc.)
Form 8-K filed: July 6, 2020, regarding events occurring June 30, 2020. The company completed its redomiciliation from Australia to Delaware and became the successor issuer and ultimate parent of the Avita group.
Material Event: Change in Certifying Accountant
The board approved the replacement of Grant Thornton Audit Pty Ltd. (GT Australia) with Grant Thornton LLP (GT US) as the company’s independent registered public accounting firm. GT Australia was dismissed and GT US was appointed effective June 30, 2020, for the fiscal year ending June 30, 2020.
GT US had served as the component auditor for the company’s U.S. operations in fiscal years 2018 and 2019. The change was made in connection with the redomiciliation and the principal auditor rule.
Financial Metrics and Liquidity
This filing does not provide revenue, earnings, cash flow, margins, debt, liquidity, or other operating financial metrics.
Prior Auditor Matters and Internal Controls
- GT Australia’s audit reports for the fiscal years ended June 30, 2019 and 2018 contained no adverse opinion, disclaimer, qualification, or modification related to going concern, audit scope, or accounting principles.
- The company reported no disagreements with GT Australia regarding accounting principles, financial statement disclosures, or audit scope and procedures during those periods or the subsequent interim period through June 30, 2020.
- A reportable event existed during fiscal 2019: a material weakness in internal control over financial reporting related to applying tax legislation across jurisdictions and tracking and monitoring disclosures concerning accumulated tax losses by jurisdiction.
- The filing states that there were no other reportable events.
- GT Australia’s July 3, 2020 letter, included as Exhibit 16.1, agreed with the company’s disclosures regarding the auditor change.
Outlook, Risks, and Unusual Items
The primary unusual item is the corporate redomiciliation and resulting change in principal auditor. The previously identified material weakness in tax-related internal controls remains an item for investors to monitor. The filing provides no financial guidance or management outlook.
Key Facts to Verify
- Completion and legal effects of the June 30, 2020 Australia-to-Delaware redomiciliation.
- Appointment of GT US and dismissal of GT Australia, both effective June 30, 2020.
- Status of remediation of the material weakness involving accumulated tax-loss disclosures across jurisdictions.
- Consistency of the company’s legal name and successor-issuer status across subsequent SEC filings.
- Exhibit 16.1, including GT Australia’s concurrence with the Item 4.01 disclosures.