TEN Holdings, Inc. Form 8-K Summary
Business Context and Reporting Period
TEN Holdings, Inc. (Nasdaq: XHLD), a Nevada corporation, filed this Current Report on Form 8-K on May 14, 2025. The filing addresses a change in the Company's independent registered public accounting firm.
Key Financial Metrics
This filing does not contain specific revenue, profit, cash flow, margin, debt, or liquidity figures. However, it notes that the prior independent auditor, Grassi & Co., CPAs, P.C., issued reports for the fiscal years ended December 31, 2024, and December 31, 2023, that included an explanatory paragraph relating to substantial doubt about the Company's ability to continue as a going concern.
Material Changes
- Dismissal of Auditor: On May 14, 2025, the Audit Committee approved the dismissal of Grassi & Co., CPAs, P.C. as the independent registered public accounting firm.
- Engagement of New Auditor: On May 14, 2025, the Audit Committee approved the engagement of ASSENTSURE PAC as the new independent registered public accounting firm.
- Audit History: There were no disagreements with the former auditor regarding accounting principles, financial statement disclosure, or auditing scope during the fiscal years ended December 31, 2024 and 2023, or the interim period through May 14, 2025.
Outlook, Risks, and Contingencies
The filing highlights a significant risk factor: the prior auditor's reports for 2023 and 2024 contained a "substantial doubt" qualification regarding the Company's ability to continue as a going concern. The Company confirmed that no consultations were held with the new auditor, ASSENTSURE, regarding matters that would typically require disclosure under Item 304(a)(2) of Regulation S-K prior to their engagement.
Investor Verification Checklist
- Verify the reasons for the change in auditors, given the prior "going concern" qualification.
- Review the letter from Grassi & Co. (Exhibit 16.1) to confirm their agreement with the statements in this filing.
- Monitor upcoming financial reports for any updates on the Company's liquidity and going concern status.
- Check for any subsequent filings regarding the transition of audit responsibilities between Grassi & Co. and ASSENTSURE PAC.