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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act
of 1934
Date of Report (Date of earliest event reported) JANUARY 24, 1997
FIBERCHEM, INC.
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(Exact name of registrant as specified in charter)
DELAWARE 1-17569 84-1063897
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1181 GRIER DRIVE, SUITE B, LAS VEGAS, NEVADA 89119
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(Address of principal executive offices) (Zip Code)
(702) 361-9873
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Registrant's telephone number, including area code
N/A
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(Former name or former address, if changed since last report)
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ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
On January 24, 1997, KPMG Peat Marwick LLP (the "Former Accountant")
resigned as FiberChem, Inc.'s (the "Company") principal accountants.
The Former Accountant did not state any reason for resigning in its
resignation letter to the Company. However, in its letter to the Audit
Committee and its Material Weakness letter both dated January 10, 1997 and
delivered January 23, 1997, the Former Accountant reported "Disagreements
with Management" on financial accounting and reporting matters and auditing
scope concerning revenue recognition that, if not satisfactorily resolved
(which all were) would have caused a modification of their report on the
1996 consolidated financial statements. The disagreements aggregating
approximately $1,800,000, concerning certain transactions termed
"consignments" by the Former Accountant, products warehoused for customers,
and a research and development effort, none of which met the requirements for
revenue recognition under generally accepted accounting principles.
The Audit Committee of the Board of Directors met with and discussed the
subject matter of the disagreements with the Former Accountant.
The Former Accountant's report on the consolidated financial statements
for the fiscal years ended September 30, 1995 and 1996 contained an
explanatory paragraph concerning the Company's ability to continue as a going
concern. Management plans in regard to these matters are described in Note 1.
The consolidated financial statements do not include any adjustment that
might result from the ultimate outcome of these uncertainties.
The Company has authorized the Former Accountant to respond fully to
inquiries of the successor accountant (when retained) concerning the subject
matter of such disagreements. A new accountant has not yet been engaged to
audit the Company's financial statements.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
c. EXHIBITS.
1. Letter from KPMG Peat Marwick LLP.
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SIGNATURE
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 thereunto duly authorized.
FIBERCHEM, INC.
Date: January 31, 1997
By: /s/ GEOFFREY F. HEWITT
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Geoffrey F. Hewitt
President
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Securities and Exchange Commission
Washington, D.C. 20549
Ladies and Gentlemen:
We were previously principal accountants for FiberChem, Inc. and, under the
date of January 10, 1997, we reported on the consolidated financial
statements of FiberChem, Inc. and subsidiaries as of and for the years ended
September 30, 1996 and 1995. On January 24, 1997, we resigned as principal
accountants. We have read FiberChem, Inc.'s statements included under Item 4
of its Form 8-K dated January 31, 1997, and we agree with such statements,
except that we are not in a position to agree or disagree with FiberChem,
Inc.'s assertion as to whether FiberChem, Inc. has or has not engaged a new
accountant.
Very truly yours,
/s/ KPMG Peat Marwick LLP
January 31, 1997
Las Vegas, Nevada
