Item 4.01. Changes in Registrant's Certifying Accountant.
Dismissal of Independent Registered Public Accounting Firm
In May 2020, SF Partnership, LLP (“SFP”), the independent registered public accounting firm for SusGlobal Energy Corp. (the “Company”), was acquired by KPMG LLP (“KPMG”).
On July 6, 2020, the audit committee (the “Committee”) of the board of directors (the “Board”) of the Company dismissed KPMG as the Company’s independent registered public accounting firm (the “Dismissal”).
From January 1, 2020 through the date of the Dismissal, there were no reportable events within the meaning set forth in Item 304(a)(1)(v) of Regulation S-K.
The audit reports of SFP on the consolidated financial statements of the Company as of and for each of the fiscal years ended December 31, 2019 and December 31, 2018 did not contain an adverse opinion or a disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles, except as follows:.
SFP’s report on the consolidated financial statements of the Company for the years ended December 31, 2019 and December 31, 2018 contained an explanatory paragraph disclosing the uncertainty regarding the Company’s ability to continue as a going concern.
During the Company’s fiscal years ended December 31, 2019, and 2018 there were no: (1) disagreements with SFP on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures that, which disagreements if not resolved to SFP’s satisfaction, would have caused SFP to make reference in connection with their opinion to the subject matter of the disagreement, or (2) reportable events in connection with its reports.
The Company has requested that KPMG furnish it with a letter addressed to the Securities and Exchange Commission stating whether they agree with the above statements. Such letter will be filed as an amendment to this Form 8-K.
Appointment of Independent Registered Public Accounting Firm
On July 6, 2020, in connection with the Dismissal, and at the recommendation of the Committee, the Board appointed MNP LLP ("MNP") as the Company's independent registered public accounting firm for the year ending December 31, 2020.
During the two most recent fiscal years ended December 31, 2019 and December 31, 2018 and during the subsequent interim period from January 1, 2020 through July 6, 2020, neither the Company nor anyone on its behalf consulted MNP regarding either (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's financial statements, and neither a written report nor oral advice was provided to the Company that MNP concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issue, or (ii) any matter that was either the subject of a "disagreement" or a "reportable event", each as defined in Regulation S-K Item 304(a)(1)(iv) and 304(a)(1)(v), respectively.