Business Context and Reporting Period
This Form 8-K is a current report filed by Point Capital, Inc. (not Silo Pharma, Inc.) on March 5, 2014. The registrant is incorporated in Delaware with principal executive offices in Englewood, New Jersey. The filing discloses a change in the company's principal independent accountants.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity for the current period. However, it references a prior audit report dated February 12, 2013, which covered the fiscal years ended December 31, 2012, and 2011. That report contained an explanatory paragraph noting substantial doubt as to the company's ability to continue as a going concern.
Material Changes
- Termination of Accountant: Point Capital, Inc. dismissed Berman & Company, P.A. as its principal independent accountants effective March 5, 2014. Berman had served the company since its inception on July 13, 2010.
- Retention of New Accountant: The company retained EisnerAmper LLP as its new principal independent accountants on the same date.
- Approval: The decision to switch auditors was approved by the Audit Committee and the Board of Directors.
Guidance, Outlook, and Risks
Management Commentary and Risks:
- The filing confirms that no disagreements occurred between the company and the former accountant (Berman) regarding accounting principles, financial statement disclosure, or auditing scope.
- Despite the lack of disagreements, the historical "going concern" warning remains a material risk factor noted in the prior 2012 Form 10-K.
- Consultation with New Accountant: The company confirmed that prior to March 5, 2014, it did not consult EisnerAmper LLP regarding accounting principles, audit opinions, or any matters that would constitute a "disagreement" or reportable event.
Investor Verification Checklist
- Verify the company name is Point Capital, Inc., not Silo Pharma, Inc.
- Review the attached Exhibit 16.1 (Letter from Berman & Company) to confirm the former accountant's stance on the dismissal.
- Examine the most recent audited financial statements to assess the current status of the "going concern" warning issued in 2013.
- Confirm the effective date of the new engagement with EisnerAmper LLP and any subsequent filings.