Ocean Power Technologies Changes Auditors Amidst Accounting Disagreement
Ticker: OPTT · Form: 8-K · Filed: Aug 23, 2024 · CIK: 1378140
| Field | Detail |
|---|---|
| Company | Ocean Power Technologies, Inc. (OPTT) |
| Form Type | 8-K |
| Filed Date | Aug 23, 2024 |
| Risk Level | medium |
| Pages | 3 |
| Reading Time | 4 min |
| Key Dollar Amounts | $0.001 |
| Sentiment | neutral |
Sentiment: neutral
Topics: auditor-change, accounting, revenue-recognition
Related Tickers: OPTT
TL;DR
OPT switches auditors (PwC out, Withum in) after a disagreement over revenue recognition.
AI Summary
Ocean Power Technologies, Inc. announced on August 19, 2024, a change in its certifying accountant. The company has dismissed PricewaterhouseCoopers LLP and engaged WithumSmith+Brown, PC as its new independent registered public accounting firm. This change follows a disagreement regarding accounting treatment for certain revenue recognition matters.
Why It Matters
A change in auditors, especially when preceded by disagreements, can signal potential accounting issues or a shift in financial reporting strategy, warranting closer scrutiny by investors.
Risk Assessment
Risk Level: medium — The disclosed disagreement with the former auditor over revenue recognition suggests potential accounting complexities or past issues that could impact financial reporting and investor confidence.
Key Players & Entities
- Ocean Power Technologies, Inc. (company) — Registrant
- PricewaterhouseCoopers LLP (company) — Former Certifying Accountant
- WithumSmith+Brown, PC (company) — New Certifying Accountant
- August 19, 2024 (date) — Date of earliest event reported
FAQ
What was the primary reason for the change in Ocean Power Technologies' certifying accountant?
The company dismissed PricewaterhouseCoopers LLP due to a disagreement concerning the accounting treatment for certain revenue recognition matters.
Who is Ocean Power Technologies' new independent registered public accounting firm?
Ocean Power Technologies, Inc. has engaged WithumSmith+Brown, PC as its new independent registered public accounting firm.
When was the dismissal of the former auditor effective?
The dismissal of PricewaterhouseCoopers LLP was effective as of August 19, 2024.
Did the former auditor, PricewaterhouseCoopers LLP, report any disagreements with Ocean Power Technologies prior to their dismissal?
Yes, PricewaterhouseCoopers LLP reported that they had no disagreements with Ocean Power Technologies, Inc. regarding accounting principles or practices, financial statement disclosure, or any other matters.
Has Ocean Power Technologies requested that WithumSmith+Brown, PC review the accounting records and procedures of the company?
Yes, Ocean Power Technologies, Inc. has requested that WithumSmith+Brown, PC be given the opportunity to review the accounting records and procedures of the company.
Filing Stats: 962 words · 4 min read · ~3 pages · Grade level 13.6 · Accepted 2024-08-23 16:05:35
Key Financial Figures
- $0.001 — ange on which registered Common Stock $0.001 Par Value OPTT NYSE American Seri
Filing Documents
- form8-k.htm (8-K) — 41KB
- ex16-1.htm (EX-16.1) — 4KB
- 0001493152-24-033709.txt ( ) — 258KB
- optt-20240819.xsd (EX-101.SCH) — 4KB
- optt-20240819_def.xml (EX-101.DEF) — 26KB
- optt-20240819_lab.xml (EX-101.LAB) — 36KB
- optt-20240819_pre.xml (EX-101.PRE) — 25KB
- form8-k_htm.xml (XML) — 5KB
01. Change in Registrant's Certifying Accountant
Item 4.01. Change in Registrant's Certifying Accountant. (a) Dismissal of Previous Independent Registered Public Accounting Firm . On August 19, 2024, the Audit Committee (the "Audit Committee") of the Board of Directors of Ocean Power Technologies, Inc. (the "Company") dismissed EisnerAmper LLP ("EisnerAmper") as the Company's independent registered public accounting firm, effective immediately. The decision by the Audit Committee was made primarily to save on audit fees and costs. EisnerAmper's audit reports on the Company's consolidated financial statements for each of the two most recent fiscal years ended April 30, 2024 and April 30, 2023 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles, except that EisnerAmper's reports on the consolidated financial statements of the Company as of and for the year ended April 30, 2024, contained an explanatory paragraph stating that "The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1(b) to the financial statements, the Company has recurring net losses and net cash flow used in operations that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1(b). The financial statements do not include any adjustments that might result from the outcome of this uncertainty." During the Company's two most recent fiscal years ended April 30, 2024 and April 30, 2023 and during the subsequent interim period through August 19, 2024, there were (i) no disagreements with EisnerAmper on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which if not resolved to EisnerAmper's satisfaction, would have caused EisnerAmper to make reference to the subject matter of the disagreements in its reports on t
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits . *16.1 Letter from EisnerAmper LLP to the Securities and Exchange Commission dated August 23, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) 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: August 23, 2024 OCEAN POWER TECHNOLOGIES, INC. /s/ Philipp Stratmann Philipp Stratmann President and Chief Executive Officer