Clarification NeededIn my opinion, both Anaergia and KPMG need to clear the air and issue more informative statements about the history of accounting problems with this company. I am NOT convinced that KPMG is totally blameless in this story.
Last August saw the release of this news:
Anaergia Inc. (“Anaergia” or the “Company”) (TSX: ANRG) announced today that the Company is revisiting its interpretation of certain technical accounting standards relating to the recognition of capital sales and related Build Own Operate (“BOO”) project costs for three of the Company’s U.S. BOO projects following discussions with KPMG LLP (“KPMG”), the Company’s external auditor, that the previously audited accounting interpretation may be incorrect.
So, KPMG audited and signed off the financial statements dating back to at least the 2021 year end from what I can see, and then changed its corporate mind over at least one aspect of Anargia's accounting.
On October 17, ANRG hired a new CFO:
Ms. Myson has over 25 years of senior leadership experience in financing and operating businesses in the energy, natural resources, and financial services industries. Most recently she was the CFO of a renewable energy company with an international portfolio of projects and operations. Prior to that she was the CFO of a publicly listed gold producer. In addition to providing financial leadership, she has been responsible for corporate development, investor relations, risk management, and information technology.
Did this woman become stupid overnight? I don't think so.
On March 20 this year, we heard that Q4 and year end financials would be released a week later. On March 27 the results were delayed a few days with this comment:
Due to the growth of the company and the corresponding complexity of the financial statements, the Company’s auditors, KPMG LLP, require a few more days to complete the audit than in previous years.
On March 31:
During its audit of the Company’s annual consolidated financial statements, KPMG LLP (“KPMG”) identified a potential adjustment related to a change in the determination of the acquisition date of a business combination during the year from the third quarter to the second quarter of 2022, which may necessitate changes to the Company’s accounting for the acquisition.
So KPMG didn't know about this acquisition back in August 2022 when this whole accounting fiasco started to unravel???
On April 10 the audited statements arrived. On April 18 it was announced that Paula Myson, CFO had resigned that very day. Then on the 26th KPMG resigns as auditor after conducting a review of the unaudited Q1 statements. Look at that again - the unaudited March Q financials that KPMG wasn't being asked to sign-off, were so offensive that the auditor resigned.
Something is very, very wrong here.