UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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): November 21, 2003
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ENOVA SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
California
(State or Other Jurisdiction of Incorporation)
0-25184 95-3056150
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(Commission File Number) (I.R.S. Employer Identification Number)
19850 South Magellan Drive
Torrance, California 90502
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(Address of principal executive offices) (Zip code)
(310) 527-2800
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(Registrant's telephone number, including area code)
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
On November 21, 2003, Enova Systems, Inc. ("Company") dismissed Moss Adams
LLP ("Moss Adams") as its independent auditors and engaged Singer, Lewak,
Greenbaum & Goldstein ("SLGG") as its independent auditors to audit its
financial statements for its year ending December 31, 2003. This decision was
approved by the Board of Directors of the Company. Prior to such engagement, the
Company did not consult with SLGG regarding the application of accounting
principles to a specific, completed or contemplated transaction, or the type of
audit opinion that might be rendered on the Company's financial statements. SLGG
has offices in several locations throughout Southern California and is among the
top twenty auditing firms with regard to the number of public companies audited.
During the fiscal years ended December 31, 2001 and 2002, and the
subsequent interim period through the date of Moss Adams dismissal, November 21,
2003, there have been no disagreements on any matter of accounting principles or
practices, financial statement disclosure or auditing scope or procedure, which
disagreements, if not resolved to the satisfaction of Moss Adams, would have
caused it to make reference to the subject matter of the disagreements in
connection with its reports, except the following:
- In connection with the audit of the Company's financial statements
for the year ended December 31, 2002, Moss Adams had a disagreement
with the Company over the valuation of inventory.
- In connection with the review of the Company's financial statements
for the quarter ended September 30, 2003, Moss Adams had a
disagreement with the Company over the allowance for uncollectible
receivables.
The audit committee of the Board of Directors and the management of the
Company discussed each of these disagreements with Moss Adams and resolved the
matters to each party's satisfaction prior to the filing of the Company's Form
10-K and Form 10-Q, respectively. The Company has authorized Moss Adams to
respond fully to inquiries from SLGG concerning the matters described in this
section.
During the fiscal years ended December 31, 2001 and 2002 or the subsequent
interim period through the date of Moss Adams' dismissal, Moss Adams did not
advise the Company that the internal controls necessary for the Company to
develop reliable financial statements were inadequate, except as follows:
- In connection with its audit of the Company's financial statements
for the year ended December 31, 2002 and 2001, Moss Adams advised
the Company of a reportable condition involving the Company's
internal controls in its procedures for tracking and reporting
inventory. In 2002, this was reported to the Company by Moss Adams
as a material weakness. Moss Adams informed the Company that (i)
controls were not in place to timely detect possible inventory
misstatements and (ii) the inability to timely detect these possible
misstatements could potentially misstate cost of goods sold in the
quarterly financial statements. In response, management timely
proposed and implemented certain improvements to address these
concerns.
The Company has authorized Moss Adams to respond fully to inquiries from
SLGG concerning the matters described in this section.
No report of Moss Adams on the financial statements of the Company for
either of the past two years contained an adverse opinion or a disclaimer of
opinion or was qualified or modified as to uncertainty, audit scope or
accounting principles.
The Company provided Moss Adams with a copy of the foregoing disclosures.
Attached as Exhibit 16 is a copy of Moss Adams's letter, dated November 26,
2003, stating its agreement with such statements.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c). Exhibit 16. Letter of Moss Adams LLP
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.
Enova Systems, Inc.
(Registrant)
Date : December 1, 2003 By: /s/ Carl D. Perry
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Name: Carl D. Perry
Title: President and CEO