Business Context and Reporting Period
This Form 6-K filing by Golden Bull Limited (trading as Bit Digital, Inc.) covers the period ending December 19, 2019. The report primarily addresses a change in the company's independent registered public accounting firm and provides context regarding recent operational shifts, including the shutdown of its peer-to-peer lending business due to Chinese government policy changes and a subsequent investigation by the Shanghai Public Security Bureau. The company has pivoted to car rental and bitcoin mining businesses.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on the resignation of the previous auditor and the appointment of a new one, rather than reporting financial performance data for the period.
Material Changes
- Accounting Firm Resignation: Wei, Wei & Co., LLP (WWC) resigned on December 19, 2019, before commencing the audit for Fiscal 2019. WWC cited a lack of familiarity with the company's new bitcoin mining operations as the reason for resignation.
- Accounting Firm Appointment: JLKZ CPA, LLP was appointed on January 3, 2020, to audit the consolidated financial statements for the fiscal year ended December 31, 2019.
- Operational Shift: The company ceased its peer-to-peer lending business and entered the car rental and bitcoin mining sectors.
Guidance, Risks, and Contingencies
The filing does not contain forward-looking guidance or management commentary on future financial performance. However, it highlights significant risks and contingencies:
- Regulatory Investigation: The company is under investigation by the Pudong Branch of the Shanghai Public Security Bureau following the shutdown of its lending business.
- Audit Scope: The previous auditor declined to proceed due to unfamiliarity with the bitcoin mining business, indicating potential complexity or risk in auditing this new segment.
- Disagreements: The company states there were no disagreements or reportable events with the former auditor regarding accounting principles or financial statement disclosures.
Investor Verification Checklist
- Verify the status and outcome of the investigation by the Shanghai Public Security Bureau regarding the former peer-to-peer lending business.
- Confirm the operational status and revenue generation of the new bitcoin mining and car rental businesses.
- Review the upcoming audit report from the newly appointed firm, JLKZ CPA, LLP, for the fiscal year ended December 31, 2019.
- Check for any subsequent filings regarding the company's liquidity position given the business pivot and regulatory scrutiny.