Business Context and Reporting Period
This Form 8-K is filed by TransBiotec, Inc. (not SOBR Safe, Inc.) on February 13, 2019. The report details a change in the company's independent registered public accounting firm.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the current period. However, it notes that the previous auditor's report for the fiscal year ended December 31, 2017, included an emphasis of matter paragraph indicating conditions that raised substantial doubt about the company's ability to continue as a going concern.
Material Changes
- Dismissal of Auditor: Benjamin & Young, LLP was dismissed as the independent registered public accounting firm effective February 13, 2019.
- Engagement of New Auditor: Hall & Company was appointed as the new independent auditor effective February 13, 2019.
- Audit History: The previous auditor's reports for the 2017 period did not contain adverse opinions or disclaimers, but did highlight going concern issues.
Management Commentary and Risks
Management confirmed there were no disagreements with the former auditor regarding accounting principles, practices, or auditing scope. The filing explicitly references the prior "going concern" warning as a material condition existing during the 2017 audit period. No new guidance or outlook was provided in this specific filing.
Investor Verification Checklist
- Verify the reasons for the auditor change beyond the standard disclosure, given the prior "going concern" warning.
- Review the attached letter from Benjamin & Young, LLP (Exhibit 16.1) for any dissenting statements.
- Confirm the company's current liquidity status and ability to continue operations post-2017.
- Check for any subsequent filings regarding the new auditor's initial findings.