Item 4.01
Changes in Registrant's Certifying Accountant.
(a)
Dismissal of Independent Registered Public Accountant
On August 12, 2016, the Board of Directors of Galaxy Gaming, Inc. (the "Company") dismissed KLJ & Associates ("KLJ") as the Company's independent registered public accounting firm. KLJ had served as the Company's independent registered public accounting firm since August 4, 2014.
KLJ's audit reports on the financial statements of the Company for the fiscal years ended December 31, 2015 and 2014, contained no adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles.
During the fiscal years ended December 31, 2015 and 2014, and through August 12, 2016, there were no "disagreements" (as such term is defined in Item 304 of Regulation S-K) with KLJ on any matter
of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreement, if not resolved to their satisfaction, would have caused KLJ to make reference to the subject matter of the disagreement in connection with its reports.
In addition,
during the fiscal years ended December 31, 2015 and 2014, and through August 12, 2016, there were no "reportable events" (as such term is defined in Item 304 of Regulation S-K).
On August 16, 2016, the Company provided KLJ with its disclosures in the Current Report on Form 8-K disclosing the dismissal of KLJ and requested in writing that KLJ furnish the Company with a letter addressed to the Securities and Exchange Commission stating whether or not they agree with such disclosures. KLJ's response is filed as an exhibit to this Current Report on Form 8-K.
(b)
Appointment of New Independent Registered Public Accountant
Following a careful deliberation and competitive process among middle market accounting firms, on August 12, 2016, the Company's Board of Directors engaged Piercy Bowler Taylor & Kern, Certified Public Accountants ("PBTK") as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2016, effective August 16, 2016.
Prior to retaining PBTK, the Company did not consult with PBTK regarding either: (i) the application of accounting principles to a specified transaction, either contemplated or proposed, or the type of audit opinion that might be rendered on the Company's financial statements; or (ii) any matter that was the subject of a "disagreement" or a "reportable event" (as those terms are defined in Item 304 of Regulation S-K).
The Company authorized KLJ to respond fully and without limitation to all requests of PBTK concerning all matters related to the audited period by KLJ.