Wetouch Technology Inc. — Form 8-K Summary
Reporting date: May 9, 2024; filed May 16, 2024. The filing reports changes to the Company’s independent registered public accounting firm. Wetouch Technology Inc. is a Nevada corporation headquartered in Sichuan, China, with common stock listed on Nasdaq under the symbol WETH.
Business Context and Reporting Period
The filing relates to the fiscal years ended December 31, 2023 and 2022, and subsequent events through May 2024. It does not provide operating or financial results for the period.
Financial Metrics
- Revenue, profit, cash flow, margins, debt, liquidity, and other financial metrics are not disclosed in this filing.
- The filing states that BF Borgers CPA PC issued reports on the Company’s 2023 and 2022 consolidated financial statements without an adverse opinion, disclaimer, qualification, or modification relating to uncertainty, audit scope, or accounting principles.
Material Changes
- On May 9, 2024, the Audit Committee approved the immediate dismissal of BF Borgers CPA PC as the Company’s independent registered public accounting firm.
- On May 10, 2024, the Company retained Enrome LLP as its new independent registered public accounting firm, with approval from the Audit Committee and Board of Directors.
- The filing identifies the change as resulting from BF Borgers’ inability to appear or practice before the SEC following the SEC’s May 3, 2024 Rule 102(e) order.
Management Commentary, Risks, and Unusual Items
- Management reported no disagreements with BF Borgers during 2022, 2023, or through May 9, 2024, concerning accounting principles, financial statement disclosure, or audit scope and procedures.
- Management reported no reportable events under Item 304(a)(1)(v) of Regulation S-K during those periods.
- The Company did not obtain BF Borgers’ concurrence with the disclosures or an auditor letter because BF Borgers was no longer permitted to practice before the SEC.
- The Company stated that it had not consulted Enrome LLP before its engagement regarding accounting principles, proposed or completed transactions, potential audit opinions, or other matters specified under Item 304(a)(2) of Regulation S-K.
- No guidance, financial outlook, contingencies, or other operating risks are disclosed.
Key Facts for Investors to Verify
- Confirm the effective timing of BF Borgers’ dismissal on May 9, 2024 and Enrome LLP’s engagement on May 10, 2024, noting that the filing’s report date precedes the new auditor’s engagement date.
- Review the SEC’s May 3, 2024 Rule 102(e) order involving BF Borgers and assess any implications for prior financial statement audits or future filings.
- Verify whether subsequent filings provide additional information about the auditor transition, audit status, or any required re-audit or restatement.
- Review the Company’s annual and periodic reports for financial performance, liquidity, debt, and going-concern information, none of which is provided here.