Business Context and Reporting Period
This Form 8-K filing by Freight Technologies, Inc. (FRGT) is dated January 7, 2025, with the report signed on January 10, 2025. The filing addresses a change in the Company's independent registered public accounting firm for the fiscal year ended December 31, 2024.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on corporate governance regarding the audit firm.
Material Changes
- Dismissal of Auditor: On January 7, 2025, the Company dismissed Marcum LLP, which had been retained on August 22, 2024. Marcum had not yet reported on any interim or annual consolidated financial statements.
- Appointment of New Auditor: On January 6, 2025, the Company engaged TAAD LLP as its new independent registered public accounting firm.
- Audit Committee Approval: Both the dismissal and the new appointment were recommended and approved by the Audit Committee of the Board of Directors.
Guidance, Outlook, and Risks
- Disagreements: The Company states there were no disagreements with Marcum regarding accounting principles, financial statement disclosure, or auditing scope/procedures during the engagement period.
- Reportable Events: No "reportable events" occurred during the two most recent fiscal years or the subsequent interim period.
- Consultations: No consultations were held with TAAD LLP prior to their engagement regarding accounting principles or audit opinions.
- Forward-Looking Statements: The filing includes standard disclaimers that forward-looking statements involve risks and uncertainties and are not guarantees of future performance.
Investor Verification Checklist
- Verify the reasons for the rapid dismissal of Marcum LLP after only five months of retention.
- Review the letter from Marcum LLP (Exhibit 16.1) to confirm their agreement with the Company's statements regarding the dismissal.
- Monitor the upcoming financial reports to ensure TAAD LLP can complete the audit for the fiscal year ended December 31, 2024, without delay.
- Check for any subsequent filings that might reveal underlying issues not disclosed in this 8-K.