New Concept Energy Dumps Auditor Whitley Penn; No Replacement Named
Ticker: GBR · Form: 8-K · Filed: 2024-01-08T00:00:00.000Z
Sentiment: bearish
Topics: auditor-change, corporate-governance, financial-reporting
TL;DR
**NCE just fired its auditor, Whitley Penn, and hasn't found a new one yet.**
AI Summary
New Concept Energy, Inc. (NCE) announced on January 2, 2024, that it has dismissed its independent registered public accounting firm, Whitley Penn LLP, effective that same day. The company has not yet engaged a new accounting firm. This matters to investors because a change in auditors, especially without an immediate replacement, can signal potential issues with financial reporting or internal controls, which could impact the reliability of future financial statements and investor confidence.
Why It Matters
A sudden change in auditors, particularly without naming a successor, can raise red flags about a company's financial health or transparency, potentially leading to increased scrutiny from investors and regulators.
Risk Assessment
Risk Level: medium — Changing auditors can indicate underlying financial reporting issues, but without more context on the reason for dismissal, the risk is moderate.
Analyst Insight
A smart investor would monitor for further announcements regarding a new auditor and review the reasons for the dismissal once disclosed, as this change could signal financial reporting issues or a lack of transparency.
Key Players & Entities
- New Concept Energy, Inc. (company) — the registrant filing the 8-K
- Whitley Penn LLP (company) — the independent registered public accounting firm that was dismissed
- January 2, 2024 (date) — the date of the earliest event reported and the effective date of the auditor dismissal
- $0.01 (dollar_amount) — par value of Common Stock
- NCE (company) — trading symbol for New Concept Energy, Inc.
- NYSE American (company) — exchange where NCE Common Stock is registered
Forward-Looking Statements
- New Concept Energy, Inc. will announce a new independent registered public accounting firm. (New Concept Energy, Inc.) — medium confidence, target: 2024-03-31
FAQ
What was the specific event reported by New Concept Energy, Inc. in this 8-K filing?
New Concept Energy, Inc. reported a 'Changes in Registrant's Certifying Accountant' event, specifically the dismissal of its independent registered public accounting firm, Whitley Penn LLP, effective January 2, 2024.
When did the reported event, the dismissal of the accounting firm, take place?
The earliest event reported, the dismissal of Whitley Penn LLP, occurred on January 2, 2024, which is also the effective date of the dismissal.
Which accounting firm was dismissed by New Concept Energy, Inc.?
New Concept Energy, Inc. dismissed Whitley Penn LLP as its independent registered public accounting firm.
Has New Concept Energy, Inc. appointed a new independent registered public accounting firm as of the filing date?
The filing does not state that New Concept Energy, Inc. has appointed a new independent registered public accounting firm; it only reports the dismissal of Whitley Penn LLP.
What is the trading symbol and the exchange where New Concept Energy, Inc.'s common stock is registered?
New Concept Energy, Inc.'s common stock trades under the symbol NCE and is registered on the NYSE American exchange.
Filing Stats: 620 words · 2 min read · ~2 pages · Grade level 10.5 · Accepted 2024-01-08 17:30:42
Key Financial Figures
- $0.01 — ch Registered Common Stock, par value $0.01 NCE NYSE American Indicate by check
Filing Documents
- b182428k.htm (8-K) — 27KB
- ex99_5.htm (EX-99.5) — 6KB
- header_image.jpg (GRAPHIC) — 2KB
- 0001214659-24-000435.txt ( ) — 207KB
- gbr-20240102.xsd (EX-101.SCH) — 3KB
- gbr-20240102_lab.xml (EX-101.LAB) — 33KB
- gbr-20240102_pre.xml (EX-101.PRE) — 22KB
- b182428k_htm.xml (XML) — 3KB
01 Changes in Registrant's Certifying Accountant
Item 4.01 Changes in Registrant's Certifying Accountant . (a) By letter dated January 2, 2024, Swalm & Associates P. C. ("Swalm") notified the Audit Committee Chairman and the Chief Financial Officer of New Concept Energy, Inc. (the "Company" or the "Issuer" or "GBR") that effective immediately Swalm was ceasing its services as independent registered public accountants for GBR, a decision due to the upcoming retirement of the principal of Swalm, Edward S. Swalm, CPA. The notice has the effect of a resignation and advises that Swalm will cooperate with GBR's new independent registered public accountants. Swalm had served as the Company's independent registered public accounting firm for each of the fiscal years ended December 31, 2008 through 2022 and was approved at the Company's Annual Meeting on December 13, 2023 to continue in that role for the fiscal year ended December 31, 2023. Swalm's report on the Company's financial statements for the preceding two fiscal years (and all other years) was not qualified in any respect as to any matter, nor did the opinions contain an adverse opinion or disclaimer of opinion. The Company has provided a copy of this disclosure to Swalm and requested Swalm to furnish the Company with a letter addressed to the Commission stating whether Swalm agrees with the statements made by the Company in this disclosure and, if not, stating the respects in which Swalm does not agree. Such letter is attached as an Exhibit to this Current Report on Form 8-K. Section 9 - Financial Statements and Exhibits
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits . The following exhibit is furnished with this Report: Exhibit Designation Description 99.5* Letter dated January 4, 2024 to the Securities and Exchange Commission from Swalm & Associates P.C. _____________________________________________ *Furnished herewith Dated: January 5, 2024. NEW CONCEPT ENERGY, INC. By: /s/Gene S. Bertcher Gene S. Bertcher, President, Chief Executive Officer and Chief Financial Officer