UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
April 2, 1999
(Date of earliest event reported)
UNIDYNE CORPORATION
(Exact name of small business issuer
as specified in its charter)
DELAWARE 0-10372 23-2154902
(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation or organization) Identification No.)
118 PICKERING WAY, SUITE 104, EXTON, PENNSYLVANIA 19341
(Address of principal executive offices)
(610) 363-8237
(Issuer's telephone number)
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ITEM 4. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT.
Arthur Andersen LLP took issue with the quality of some of the Company's
internal controls over payroll and inter-company transfer of funds. Arthur
Andersen resigned on March 26, 1999, reporting to management that certain
internal controls were deemed not adequate to permit reliance for purposes of
completing an audit.
Arthur Andersen's opinion for the December 31, 1997, financial statement
was modified for an uncertainty as to going concern. There have been no
disagreements regarding accounting issues between Arthur Andersen and the
Company in the past two years or in any interim period. The Board of Directors
has not discussed the issues that Arthur Andersen has raised regarding internal
controls with Arthur Andersen.
The Company differs in its view of the concerns raised regarding internal
controls and funds transfers at the Company. Further, the Company has instituted
measures to correct the perceived failures. It will hire new auditors and file
its Form 10-KSB Annual Report for calendar year 1998 as promptly as possible.
The Company will authorize Arthur Andersen to respond fully to the inquiries of
the successor accountant regarding this matter.
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.
UNIDYNE Corporation
April 2, 1999 /s/ C. Eugene Hutcheson
----------------------------
C. Eugene Hutcheson, Chairman
and Chief Executive Officer
