8-K: TruGolf Holdings Announces Change in Independent Auditors Following Business Combination
Change of Auditor Announcement
TruGolf Holdings, Inc. has changed its independent registered public accounting firm to Haynie & Company, following the completion of a business combination.
Summary
- TruGolf Holdings, Inc. (formerly Deep Medicine Acquisition Corp.) has appointed Haynie & Company as its new independent auditor, effective February 19, 2024.
- This change follows the completion of a business combination on January 31, 2024, where Deep Medicine Acquisition Corp. merged with TruGolf, Inc.
- MaloneBailey, LLP, the previous auditor for Deep Medicine Acquisition Corp., was dismissed on the same day.
- TruGolf Inc. also had changes in its auditors, with CohnReznick LLP being dismissed on February 2, 2024, and Daszkal Bolton LLP having previously merged with CohnReznick on April 5, 2023.
- There were no disagreements or reportable events with any of the previous auditors regarding accounting principles or practices.
Sentiment
Score: 7
Explanation: The document is neutral to slightly positive. The change in auditors is expected after a merger, and there are no indications of any issues with the previous auditors. The transition appears to be smooth.
Positives
- The change in auditors was a result of a business combination and not due to any issues with the previous auditors.
- All previous auditors have confirmed that there were no disagreements or reportable events during their tenures.
- The transition to a new auditor appears to be smooth and without any complications.
Risks
- The company has undergone a significant business combination, which could introduce complexities in financial reporting.
- The change in auditors could potentially lead to a period of adjustment and increased scrutiny.
Management Comments
- The Audit Committee of the Board of Directors approved the engagement of Haynie & Company as the new independent auditor.
Industry Context
Changes in auditors are common after mergers and acquisitions, as the newly formed entity often seeks to consolidate its financial reporting under a single firm.
Comparison to Industry Standards
- The process of changing auditors after a merger is standard practice in the industry.
- The lack of disagreements with previous auditors is a positive sign, indicating a smooth transition.
- The letters from the previous auditors confirming no disagreements are consistent with regulatory requirements.
Stakeholder Impact
- Shareholders will be informed of the change in auditors.
- The change in auditors is not expected to have a significant impact on employees or customers.
Next Steps
- Haynie & Company will audit the company's consolidated financial statements for the year ending December 31, 2023.
Key Dates
| Date | Description |
|---|---|
| 2021-12-31 | End of fiscal year for TruGolf Inc. audited by Daszkal Bolton LLP. |
| 2022-12-31 | End of fiscal year for TruGolf Inc. audited by CohnReznick LLP. |
| 2023-03-31 | End of fiscal year for Deep Medicine Acquisition Corp. audited by MaloneBailey, LLP. |
| 2023-04-05 | Daszkal Bolton LLP merged with CohnReznick LLP. |
| 2023-07-21 | Date of the Business Combination Agreement. |
| 2024-01-31 | Completion date of the business combination between Deep Medicine Acquisition Corp. and TruGolf Inc. |
| 2024-02-02 | CohnReznick LLP was dismissed as the auditor for TruGolf Inc. |
| 2024-02-19 | Haynie & Company was engaged as the new auditor for TruGolf Holdings, Inc. and MaloneBailey, LLP was dismissed. |
| 2024-02-23 | Date of the 8-K filing and letters from previous auditors. |
Keywords
auditor, accounting firm, TruGolf Holdings, Haynie & Company, MaloneBailey, CohnReznick, Daszkal Bolton, business combination, merger
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