Business Context and Reporting Period
This Form 6-K filing by Check-Cap Ltd. (referred to in metadata as Mbody AI Ltd.) covers the month of March 2024, with the report dated March 22, 2024. The registrant is a Foreign Private Issuer based in Israel. The filing primarily addresses the resignation of the company's independent registered public accounting firm, Brightman Almagor Zohar & Co. ("Brightman"), effective February 15, 2024.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity for the current or prior periods. The document focuses exclusively on corporate governance and auditor matters rather than financial performance data.
Material Changes
- Accountant Resignation: Brightman resigned as the independent registered public accounting firm on February 15, 2024, without seeking the company's consent.
- Reason for Resignation: The resignation was triggered by control concerns that arose within the company during the first quarter of 2024.
- Remediation Status: Management states that all control issues identified by Brightman have been remediated.
- Audit History: Brightman audited financial statements for the years ended December 31, 2022, and 2021. The audit reports contained no adverse opinions, disclaimers, or qualifications.
Outlook, Risks, and Management Commentary
Management confirms there were no disagreements with Brightman regarding accounting principles, financial statement disclosures, or auditing scope. The company is currently in discussions to engage a new independent accounting firm of international repute. As of the filing date, the company has not yet received a response letter from Brightman regarding the statements made in this report. No specific financial guidance or forward-looking projections are included in this document.
Investor Verification Checklist
- Verify the identity of the new independent accounting firm once the engagement is finalized.
- Confirm the specific nature of the "control concerns" cited by Brightman and the details of the remediation steps taken.
- Monitor for the receipt of Brightman's response letter to the SEC regarding the resignation disclosures.
- Review upcoming financial filings (e.g., Form 20-F) for any impact on the audit opinion or financial restatements related to the control issues.