GULFSLOPE ENERGY, INC. (OTCMKTS:GSPE) Files An 8-K Changes in Registrant’s Certifying Accountant
Item 4.01
(a) Dismissal of Independent Registered Public Accounting Firm
On November 1, 2019, the Audit Committee of the Board of Directors (the “Audit Committee”) of GulfSlope Energy, Inc. (the “Company”) dismissed BDO USA, LLP (“BDO”) as the Company’s independent registered public accounting firm and provided BDO with notice of such dismissal.
During the fiscal years ended September 30, 2018 and 2017, and the subsequent interim periods through November 1, 2019, there were (i) no disagreements within the meaning of Item 304(a)(1)(iv) of Regulation S-K and the related instructions between the Company and BDO on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the satisfaction of BDO, would have caused BDO to make reference thereto in their reports; and (ii) no “reportable events” as defined in Item 304(a)(1)(v) of Regulation S-K, except that as reported in Part II, Item 9A of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2018 (the “2018 10-K”) and as reported in Part I, Item 4 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 (the “June 2019 10-Q”), the Company reported material weaknesses in its internal control over financial reporting. In particular, as of September 30, 2018, the Company concluded its internal control over financial reporting was not effective due to insufficient control activities related to the review and monitoring of Company contracts to ensure the proper accounting for such contracts, and as of March 31 and June 30, 2019, the Company concluded that its internal control over financial reporting was not effective due to the lack of effective controls over the valuation of accounts receivable.
BDO’s reports on the condensed financial statements of the Company as of and for the fiscal years ended September 30, 2018 and September 30, 2017 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles, except that BDO’s reports for the fiscal years ended September 30, 2018 and 2017 included an explanatory paragraph indicating that there was substantial doubt about the Company’s ability to continue as a going concern.
The Company has provided BDO with a copy of this Current Report on Form 8-K and requested that BDO furnish a letter addressed to the Securities and Exchange Commission stating whether or not it agrees with the statements herein. A copy of BDO’s letter, dated November 6, 2019, is filed as Exhibit 16.1 to this Form 8-K.
(b) Engagement of Independent Registered Accounting Firm
On November 1, 2019, the Audit Committee approved the engagement of Pannell Kerr Forster of Texas, P.C. (“PKF”) as the Company’s independent registered public accounting firm for the Company’s fiscal year ending September 30, 2019.
During the fiscal years ended September 30, 2018 and September 30, 2017, and the subsequent interim periods through June 30, 2019, neither the Company nor anyone on its behalf has consulted with PKF regarding (i) the application of accounting principles to a specific transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company’s consolidated financial statements, and neither a written report nor oral advice was provided to the Company that PKF concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing, or financial reporting issue; (ii) any matters that were the subject of a disagreement within the meaning of Item 304(a)(1)(iv) of Regulation S-K and the related instructions; or (iii) any reportable event within the meaning of Item 304(a)(1)(v) of Regulation S-K.
The following exhibit is being furnished herewith:
| 16.1 | Letter from BDO USA, LLP |
GULFSLOPE ENERGY, INC. Exhibit
EX-16.1 2 ex16-1.htm LETTER FROM BDO USA,…
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About GULFSLOPE ENERGY, INC. (OTCMKTS:GSPE)
GulfSlope Energy, Inc. (GulfSlope) is an independent oil and natural gas exploration company. The Company’s interests are concentrated in the United States Gulf of Mexico (GOM) federal waters offshore Louisiana. The Company focuses on identifying oil and gas prospects. As of September 30, 2015, the Company had identified and acquired leases on approximately 20 prospects containing hydrocarbon deposits. As of September 30, 2015, the Company had leased approximately 20 federal Outer Continental Shelf blocks (leases). As of September 30, 2015, the Company had licensed approximately 2.2 million acres of three-dimensional (3D) seismic data in its area of concentration and evaluated the data using interpretation technologies. As of September 30, 2015, the Company had not generated any revenues.
