8-K: Mentor Capital Dismisses BF Borgers as Independent Accountant

Mentor Capital has dismissed BF Borgers as their independent accountant, effective May 8, 2024, following a recommendation from the Audit Committee and approval by the Board of Directors.

Summary

• Mentor Capital, Inc. has terminated its relationship with BF Borgers CPA PC as its independent accountant.
• The dismissal was effective May 8, 2024.
• The decision was made based on the recommendation of the company's Audit Committee and was unanimously approved by the Board of Directors.
• There were no disagreements with BF Borgers regarding accounting principles, financial statement disclosure, or auditing scope during the audits for the fiscal years ended December 31, 2022 and 2023.
• BF Borgers' audit report for the years ended December 31, 2022 and 2023 did not contain an adverse opinion or disclaimer of opinion.
• The 2022 audit report included an explanatory paragraph regarding the company's ability to continue as a going concern.
• Mentor Capital has requested a letter from BF Borgers confirming the statements made in this report.

Sentiment

Score: 5

Explanation: The document reports a change in auditors, which is not inherently positive or negative. The lack of stated disagreements is reassuring, but the going concern note from 2022 is a concern.

Positives

• The company states there were no disagreements with BF Borgers on any accounting or auditing matters.
• The audit reports did not contain adverse opinions or disclaimers, indicating a clean audit opinion, except for the going concern note in 2022.

Negatives

• The dismissal of an auditor can sometimes raise concerns among investors, even if no issues are explicitly stated.
• The 2022 audit report included an explanatory paragraph regarding the company's ability to continue as a going concern, which could be a concern for investors.

Risks

• The change in auditors could lead to increased scrutiny from regulators or investors.
• The need to engage a new auditor could result in additional costs and time for the company.
• The going concern note in the 2022 audit report may indicate underlying financial instability.

Management Comments

• The dismissal of BF Borgers was recommended by the Audit Committee and unanimously approved by the Board of Directors.

Industry Context

Changes in auditors are not uncommon, but they can sometimes signal underlying issues or disagreements. It is important to monitor the company's future filings and disclosures for any further information.

Comparison to Industry Standards

• The dismissal of an auditor is not unusual, but it is important to compare the reasons for the change with industry norms.
• Companies typically change auditors due to various reasons, including cost, service quality, or potential conflicts of interest.
• The lack of stated disagreements is a positive sign, but the going concern note in the 2022 audit is a point of concern.

Stakeholder Impact

• Shareholders may be concerned about the change in auditors and the going concern note from 2022.
• The company will need to ensure a smooth transition to a new auditor to maintain investor confidence.

Next Steps

• Mentor Capital will need to engage a new independent accountant.
• The company will need to file a letter from BF Borgers confirming the statements made in the report.

Key Dates

Keywords

auditor, BF Borgers, independent accountant, audit committee, financial statements, accounting, dismissal, going concern