Business Context and Reporting Period
This Form 6-K filing by ReTo Eco-Solutions, Inc. covers the month of March 2021. The report discloses a material 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. However, it notes that the audit report for the fiscal year ended December 31, 2019, contained an uncertainty regarding the Company's ability to continue as a going concern.
Material Changes
- Dismissal of Previous Auditor: On March 15, 2021, the Company dismissed Friedman LLP as its independent registered public accounting firm.
- Appointment of New Auditor: On March 15, 2021, the Audit Committee approved the appointment of YCM CPA Inc. as the new independent registered public accounting firm.
- Audit History: There were no disagreements with the previous auditor regarding accounting principles, practices, or auditing scope prior to dismissal. No "reportable events" occurred during the engagement.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future operations, or specific risk factors beyond the historical going concern uncertainty noted in the 2019 audit report. The primary focus is the procedural change in audit oversight.
Investor Verification Checklist
- Verify the reasons for dismissing Friedman LLP, given the prior going concern uncertainty.
- Confirm the qualifications and independence of the new auditor, YCM CPA Inc.
- Review the attached letter from Friedman LLP (Exhibit 16.1) to ensure they concur with the Company's statements regarding the dismissal.
- Assess the current status of the Company's going concern viability in light of the auditor change.