UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 4.01 | Changes in Registrant’s Certifying Accountant. |
Notice of Dismissal of Current Independent Registered Public Accounting Firm and Engagement of New Independent Registered Public Accounting Firm For Fiscal 2020
The Audit Committee (the “Audit Committee”) of the Board of Directors of Gentherm Incorporated (the “Company”) conducted a competitive process to determine the Company’s independent registered public accounting firm for the Company’s fiscal year ending December 31, 2020.
Following a review of the proposals received, the Audit Committee: (i) on January 31, 2020, engaged Ernst & Young LLP (“EY”) to serve as the Company’s independent registered public accounting firm for the Company’s fiscal year ending December 31, 2020, and (ii) on January 27, 2020, notified Grant Thornton LLP (“GT”), the Company’s current independent registered public accounting firm, that the Audit Committee had determined to dismiss GT as the Company’s independent registered public accounting firm, effective as of the close of business on the date the Company publicly files its audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019.
Reports of Current Independent Registered Public Accounting Firm During Applicable Period
GT’s reports on the Company’s consolidated financial statements as of and for the fiscal years ended December 31, 2018 and 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. GT’s report on the Company’s internal control over financial reporting as of December 31, 2018 contained an adverse opinion because of the effect of the material weakness described in the following paragraph. GT’s report on the Company’s internal control over financial reporting as of December 31, 2017 did not contain any adverse opinion or disclaimer of opinion, nor was it qualified or modified as to uncertainty, audit scope, or accounting principles. During the fiscal years ended December 31, 2018 and 2017 and the subsequent interim periods through January 27, 2020, there were no disagreements (within the meaning of Item 304(a)(1)(iv) of Regulation S-K and the related instructions) between the Company and GT on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to GT’s satisfaction, would have caused GT to make reference thereto in its reports.
No “Reportable Events” Occurred During Applicable Period, Except For Prior Material Weakness That Has Been Remediated
During the fiscal years ended December 31, 2018 and 2017 and the subsequent interim periods through January 27, 2020, except for the material weakness in internal control over financial reporting described below, there were no “reportable events” within the meaning of Item 304(a)(1)(v) of Regulation S-K. As disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, the Company identified a material weakness related to Information Technology General Controls at its wholly owned subsidiary, Gentherm Medical, LLC (formerly, Cincinnati Sub-Zero Products, LLC), which did not operate in a way to appropriately restrict elevated access and address segregation of duty conflicts at both the information technology and end user levels. In view of this material weakness, GT’s report on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018 indicated that the Company did not maintain effective internal control over financial reporting as of December 31, 2018. The Company implemented a remediation plan that included development of enhanced risk assessment procedures and controls over the monitoring of elevated access and segregations of duty conflicts. The Company completed testing of the operating effectiveness of the enhanced controls and found them to be effective as of September 30, 2019 and, therefore, concluded that the material weakness was remediated as of September 30, 2019. The subject matter of this material weakness was discussed by the Audit Committee with GT. The Company has authorized GT to respond fully to the inquiries of EY concerning the prior material weakness.
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No Reportable Consultations With New Independent Registered Public Accounting Firm
During the fiscal years ended December 31, 2018 and 2017 and the subsequent interim periods through January 31, 2020, neither the Company nor anyone on its behalf has consulted with EY 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 financial statements, and neither a written report nor oral advice was provided to the Company that EY concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing, or financial reporting issue; (ii) any matter that was 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).
Other Matters
The Company requested that GT furnish a letter addressed to the Securities and Exchange Commission stating whether or not it agrees with the above statements. GT has furnished the letter confirming its agreement with the above statements. A copy of GT’s letter, dated January 31, 2020, is filed as Exhibit 16 to this Form 8-K.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit |
Description | |||
| 16 |
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| 104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||
3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| GENTHERM INCORPORATED | ||
| By: |
/s/ Wayne Kauffman | |
| Wayne Kauffman | ||
| Vice President and General Counsel | ||
Date: January 31, 2020
4
Exhibit 16
January 31, 2020
U.S. Securities and Exchange Commission
Office of the Chief Accountant
100 F Street, NE
Washington, DC 20549
Re: Gentherm Incorporated
File No. 0-21810
Dear Sir or Madam:
We have read Item 4.01 of Form 8-K of Gentherm Incorporated dated January 31, 2020, and agree with the statements concerning our Firm contained therein.
Very truly yours,
/s/ GRANT THORNTON LLP
Document and Entity Information |
Jan. 27, 2020 |
|---|---|
| Cover [Abstract] | |
| Entity Registrant Name | GENTHERM Inc |
| Amendment Flag | false |
| Entity Central Index Key | 0000903129 |
| Document Type | 8-K |
| Document Period End Date | Jan. 27, 2020 |
| Entity Incorporation State Country Code | MI |
| Entity File Number | 0-21810 |
| Entity Tax Identification Number | 95-4318554 |
| Entity Address, Address Line One | 21680 Haggerty Road |
| Entity Address, City or Town | Northville |
| Entity Address, State or Province | MI |
| Entity Address, Postal Zip Code | 48167 |
| City Area Code | (248) |
| Local Phone Number | 504-0500 |
| Written Communications | false |
| Soliciting Material | false |
| Pre Commencement Tender Offer | false |
| Pre Commencement Issuer Tender Offer | false |
| Security 12b Title | Common Stock, no par value |
| Trading Symbol | THRM |
| Security Exchange Name | NASDAQ |
| Entity Emerging Growth Company | false |