Business Context and Reporting Period
This Form 8-K is filed by PowerVerde, Inc. (not 374Water Inc.) on January 6, 2011. The report addresses a change in the company's independent registered public accounting firm.
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on corporate governance regarding the audit firm.
Material Changes
- Accounting Firm Change: The former auditor, Berenfeld, Spritzer, Shechter & Sheer LLP ("Berenfeld"), dissolved. Consequently, the company's audit engagement partner, Robert P. Bedwell, CPA, joined Cherry, Bekaert & Holland, L.L.P. ("CBH").
- New Auditor: CBH has become the new independent registered public accounting firm, a change accepted by the Board of Directors.
- Continuity: Mr. Bedwell's role as the audit engagement partner continues uninterrupted at CBH.
Management Commentary and Risks
- Audit History: Berenfeld's audit reports for fiscal years ended December 31, 2009 and 2008 contained no adverse opinions, disclaimers, or qualifications regarding uncertainty, scope, or accounting principles.
- No Disagreements: There were no disagreements between the Company and Berenfeld on accounting principles, practices, or auditing scope during the relevant periods.
- No Reportable Events: No reportable events as defined in Item 304(a)(1)(v) of Regulation S-K occurred.
- Consultation: The Company did not consult CBH regarding accounting principles or potential audit opinions prior to this appointment.
- Limitation: Because Berenfeld ceased operations, the company could not provide them with a copy of this disclosure or request a letter of agreement from them.
Investor Verification Checklist
- Verify the transition of the audit engagement from Berenfeld to CBH and confirm the continuity of the audit partner.
- Review the most recent audited financial statements (2009 and 2008) to confirm the absence of qualified opinions or disagreements.
- Confirm that no undisclosed reportable events or disagreements existed during the interim period through January 13, 2011.
- Note that the filing metadata listed "374Water Inc." as the company name, but the document explicitly identifies the registrant as "PowerVerde, Inc."