Business Context and Reporting Period
This Form 6-K filing by Sunrise New Energy Co., Ltd. (referred to in metadata as E-Power Inc.) covers the month of March 2025, with a specific reporting date of March 5, 2025. The document serves as a report of a change in the Company's independent registered public accounting firm.
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 auditor transition details and historical audit opinions rather than current financial performance data.
Material Changes
- Auditor Change: On March 3, 2025, the Company appointed Wei, Wei & Co., LLP ("WWC") as its new independent registered public accounting firm, effective immediately.
- Dismissal of Prior Auditor: Marcum Asia CPAs LLP ("MarcumAsia") was dismissed on the same day. MarcumAsia had served as the auditor since December 16, 2022.
- Reason for Change: The Company states the decision was not the result of any disagreement regarding accounting principles, financial statement disclosure, or auditing scope.
Outlook, Risks, and Contingencies
The filing highlights significant historical risks and contingencies associated with the prior auditor's reports:
- Going Concern Doubt: MarcumAsia's report on the consolidated financial statements for the fiscal year ended December 31, 2023, included an explanatory paragraph regarding substantial doubt about the Company's ability to continue as a going concern.
- Internal Control Weaknesses: The Company disclosed material weaknesses related to internal control over financial reporting in its Form 20-F for the fiscal year ended December 31, 2023. These weaknesses persisted through the fiscal year ended December 31, 2024, and the interim period through March 3, 2025.
- No Disagreements: There were no disagreements with MarcumAsia on accounting matters that would have required reference in their report, aside from the noted going concern and internal control issues.
Investor Verification Checklist
- Verify the status of the "substantial doubt about going concern" noted in the 2023 audit report and whether this has been resolved.
- Review the specific details of the material weaknesses in internal controls over financial reporting disclosed in the 2023 and 2024 Form 20-F filings.
- Confirm the transition plan and timeline for the new auditor, Wei, Wei & Co., LLP, to complete their initial audit procedures.
- Examine the letter from MarcumAsia (Exhibit 16.1) to ensure no undisclosed disagreements exist regarding the change.