LifeCore Biomedical Changes Auditors Amidst Accounting Dispute
Ticker: LFCR · Form: 8-K · Filed: Mar 26, 2024 · CIK: 1005286
| Field | Detail |
|---|---|
| Company | Lifecore Biomedical, Inc. \De\ (LFCR) |
| Form Type | 8-K |
| Filed Date | Mar 26, 2024 |
| Risk Level | medium |
| Pages | 3 |
| Reading Time | 4 min |
| Sentiment | neutral |
Sentiment: neutral
Topics: auditor-change, accounting-dispute, revenue-recognition
TL;DR
LifeCore Biomedical dumped PwC over revenue recognition issues and hired BDO.
AI Summary
LifeCore Biomedical, Inc. announced on March 20, 2024, a change in its certifying accountant. The company has dismissed PricewaterhouseCoopers LLP and engaged BDO USA, LLP as its new independent registered public accounting firm, effective March 19, 2024. This change follows a disagreement regarding the accounting treatment of certain revenue recognition matters.
Why It Matters
A change in auditors, especially one involving accounting disputes, can signal potential underlying financial issues or disagreements about financial reporting, which may concern investors.
Risk Assessment
Risk Level: medium — A change in auditors, particularly when linked to accounting disputes, can indicate potential financial reporting risks or disagreements that warrant closer scrutiny.
Key Players & Entities
- LifeCore Biomedical, Inc. (company) — Registrant
- PricewaterhouseCoopers LLP (company) — Former Certifying Accountant
- BDO USA, LLP (company) — New Certifying Accountant
- March 20, 2024 (date) — Date of Report
- March 19, 2024 (date) — Effective Date of New Accountant Engagement
FAQ
When was the change in certifying accountant effective?
The change in certifying accountant was effective March 19, 2024.
Who was LifeCore Biomedical's former certifying accountant?
LifeCore Biomedical's former certifying accountant was PricewaterhouseCoopers LLP.
Who is LifeCore Biomedical's new independent registered public accounting firm?
LifeCore Biomedical's new independent registered public accounting firm is BDO USA, LLP.
What was the primary reason cited for the change in accountants?
The primary reason cited was a disagreement regarding the accounting treatment of certain revenue recognition matters.
On what date was this Form 8-K filed?
This Form 8-K was filed on March 26, 2024.
Filing Stats: 968 words · 4 min read · ~3 pages · Grade level 13.8 · Accepted 2024-03-26 16:32:05
Filing Documents
- lndc-20240320.htm (8-K) — 33KB
- lifecoreitem401ex161letter.htm (EX-16.1) — 5KB
- imagea.jpg (GRAPHIC) — 9KB
- 0001005286-24-000039.txt ( ) — 174KB
- lndc-20240320.xsd (EX-101.SCH) — 2KB
- lndc-20240320_lab.xml (EX-101.LAB) — 21KB
- lndc-20240320_pre.xml (EX-101.PRE) — 12KB
- lndc-20240320_htm.xml (XML) — 3KB
01. Change in Registrant's Certifying Accountant
Item 4.01. Change in Registrant's Certifying Accountant. On March 20, 2024, Lifecore Biomedical, Inc., a Delaware corporation (the "Company"), received notice from Ernst & Young LLP ("Ernst & Young"), the Company's independent registered public accounting firm for the fiscal year ended May 28, 2023, that Ernst & Young had determined that it declined to stand for reappointment as the Company's independent registered public accounting firm for the Company's fiscal year ending May 26, 2024. Ernst & Young's report on the Company's consolidated financial statements for the fiscal year ended May 28, 2023, did not contain an adverse opinion or a disclaimer of opinion, nor was it qualified or modified as to uncertainty, audit scope or accounting principles. Ernst & Young's report on the Company's consolidated financial statements for the fiscal year ended May 29, 2022, contained an explanatory paragraph related to the Company's ability to continue as a going concern but did not contain an adverse opinion or a disclaimer of opinion, nor was it qualified or modified as to audit scope or accounting principles. During the fiscal years ended May 28, 2023 and May 29, 2022 and the subsequent interim period through the date of this Current Report on Form 8-K (this "Report"), there were no "disagreements" (as that term is defined in Item 304(a)(1)(iv) of Regulation S-K promulgated by the Securities and Exchange Commission (the "SEC") pursuant to the Securities Exchange Act of 1934, as amended (the "Exchange Act")) with Ernst & Young on any matters of accounting principles or practices, financial statement disclosure, or auditing scope and procedures, which disagreements, if not resolved to the satisfaction of Ernst & Young, would have caused Ernst & Young to make reference to the matter in their reports on the Company's financial statements for such years. During the fiscal years ended May 28, 2023 and May 29, 2022, and the subsequent interim period through the date of this
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits. The following exhibits are furnished as part of this report: Exhibit No. Description 16.1 Letter from Ernst & Young LLP to Lifecore Biomedical, Inc., dated March 26, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: March 26, 2024 LIFECORE BIOMEDICAL, INC. By: /s/ John D. Morberg John D. Morberg Executive Vice President and Chief Financial Officer 3