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
Date of Report (Date of earliest event reported) April 23, 2003
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INNOVATIVE SOFTWARE TECHNOLOGIES, INC
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(Exact name of registrant as specified in its charter)
California 000-1084047 95-4691878
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(State or other jurisdiction (Commission File (IRS Employer
or incorporation) Number) Identification No.)
5072 North 300 West, Provo, Utah 84604
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(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code (801) 371-0755
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204 NW Platte Valley Drive, Riverside Mo 64150
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(Former name or former address, if changed since last report)
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ITEM 4. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT.
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Previous Independent Accountants
(1) Effective April 23, 2003, Innovative Software Technologies, Inc.
dismissed Grant Thornton LLP ("Grant Thornton") as the Company's independent
accountant. The Company dismissed Grant Thornton based on certain correspondence
received from Grant Thornton pursuant to Section 10A of the Securities Exchange
Act of 1934 in which Grant Thornton expressed concern as to the propriety of
certain transactions, notified the Company that the firm could not continue to
be associated with the Company's December 2001 and 2000 financial statements and
that the reports thereon could no longer be relied upon. The Company took strong
exception to such correspondence and filed a Current Report on Form 8-K dated
April 24, 2003 presenting its position on the matter.
(2) As indicated, Grant Thornton has disassociated itself from the
prior Reports but, prior to such communication, the reports of Grant Thornton on
the financial statements of Innovative Software contained no adverse opinion or
disclaimer of opinion, and were unqualified or not modified as to uncertainty,
audit scope or accounting principle.
(3) The decision to dismiss Grant Thornton was recommended by
management and approved by all of the directors, including the Company's four
independent directors, of the Company's Board of Directors.
(4) In connection with its audits for the two most recent fiscal years
and the subsequent interim period preceding dismissal, there had previously been
no disagreements with Grant Thornton 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 Grant Thornton, would have
caused them to make reference thereto in their report on the financial
statements for such years except as indicated below.
o As reported in the Current Report on Form 8-K disclosed above,
Grant Thornton claimed that a consultant to the Company, who
experienced a criminal conviction, participated in the
auditing process for the Company's financial statements and
was affiliated with certain buyers of software of the Company.
o Grant Thornton also questioned a sale of the Company's
software in the third quarter of 2002 in exchange for
securities, which was subsequently written off in the final
quarter of 2002.
o As described in the Company's responding letter and in the
above referred Current Report on Form 8-K, the Company
maintains that information concerning the consultant was
thoroughly discussed at the office of Grant Thornton
previously conducting the audits. Furthermore, the Company
maintains that information concerning the software sales for
securities was discussed in complete detail through all phases
of the transaction with Grant Thornton, and it was solely at
the Company's initiative, once it ascertained certain
information under a non-disclosure agreement with the third
party company, that the asset was written off.
(5) Except as disclosed above, during the two most recent fiscal years
and prior to the date hereof, Innovative Software has had no reportable events
(as defined in Item 304(a)(1)(iv) of Regulation S-B).
Innovative Software has requested Grant Thornton to furnish a letter
addressed to the Securities and Exchange Commission stating whether or not Grant
Thornton agrees with the statement made above and in the Company's Current
Report on Form 8-K described above and, if not, stating the respects in which it
does not agree. A copy of Grant Thornton's letter will be filed as an exhibit to
an amended Form 8-K.
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Engagement of New Independent Accountants.
(1) Effective April 11, 2003, Innovative Software engaged the
accounting firm of Robison, Hill & Co, as the Company's new independent
accountant to audit its financial statements for the fiscal years ended December
31, 2001 and 2002.
(2) Except with respect to the issues raised by Grant Thornton in its
correspondence to the Company, Innovative Software has not consulted with
Robison, Hill & Co. during the last two years or subsequent interim period on
either the application of accounting principles or type of opinion Robison, Hill
& Co. might issue on Innovative Software's financial statements.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
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(c) Exhibits
1. Correspondence from Grant Thornton LLP (To be supplied by
amendment)
SIGNATURES
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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.
INNOVATIVE SOFTWARE TECHNOLOGIES,
INC.
By: /s/ Douglas S. Hackett
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Douglas S. Hackett, President,
Chief Executive Officer and Director
By: /s/ Linda W. Haslem
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Linda W. Haslem, Chief Financial Officer
DATED: April 23, 2003
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