FOCUS UNIVERSAL INC. current report, 20 April 2017

Business Context and Reporting Period

Company: FOCUS UNIVERSAL INC.
Filing Type: Form 8-K (Current Report)
Date of Report: April 20, 2017
Event Date: April 16, 2017 (Earliest event reported)
Principal Executive Offices: 829 Lawson Street, City of Industry, CA 91748

Key Financial Metrics

The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on a change in the registrant's certifying accountant.

Material Changes Versus Prior Period

The material change reported is the resignation of the company's independent registered public accounting firm, DYH & Company ("DYH"), effective immediately on April 16, 2017. DYH cited that the company no longer fits their client profile. The company has engaged a new firm, BF Borgers CPA PC, following a competitive process.

Management Commentary, Risks, and Contingencies

  • Reason for Resignation: The auditor stated the company no longer fits their client profile.
  • Disagreements: Management confirmed there were no disagreements with DYH regarding GAAP, financial statement disclosures, or auditing scope/procedures during the two most recent fiscal years ended December 31, 2016, and the nine months ended December 31, 2015.
  • Reportable Events: No events of the type listed in paragraphs (A) through (D) of Item 304(a)(1)(v) of Regulation S-K occurred during the specified periods.
  • Auditor Response: The company provided DYH with a copy of this Form 8-K prior to filing and requested a letter addressed to the SEC confirming agreement with the statements regarding the lack of disagreements.

Important Facts for Investor Verification

  • Verify the status of the letter from the former auditor (DYH & Company) to the SEC confirming the absence of disagreements.
  • Confirm the engagement terms and independence of the new auditor, BF Borgers CPA PC.
  • Review the most recent audited financial statements to assess the impact of the auditor change on future reporting timelines.
  • Investigate the specific criteria used by DYH to determine the company no longer fits their client profile.