Business Context and Reporting Period
Form 6-K filed April 6, 2022, covering April 2022. The filing identifies the registrant as Happiness Development Group Limited, with principal offices in Fujian, China, and states that the company files annual reports on Form 20-F. The request metadata identifies Paranovus Entertainment Technology Ltd.; this differs from the registrant name shown in the filing.
Key Financial Metrics
The filing is limited to a change in the company’s independent registered public accounting firm. It does not provide revenue, profit, cash flow, margins, debt, liquidity, or other operating or financial metrics.
Material Changes
- Effective March 30, 2022, the board dismissed Briggs & Veselka Co. as the company’s independent registered public accounting firm.
- On the same date, the board engaged TPS Thayer, LLC to audit the consolidated financial statements for the fiscal year ended March 31, 2022.
- Briggs & Veselka’s reports for the preceding two fiscal years contained no adverse opinion, disclaimer, or qualification related to uncertainty, audit scope, or accounting principles.
- The company reported no disagreements with Briggs & Veselka regarding accounting principles, financial statement disclosure, or audit scope and procedures.
Management Commentary, Risks, and Unusual Items
- The filing discloses a reportable event involving material weaknesses in internal control over financial reporting.
- The identified weaknesses were insufficient accounting personnel and resources with appropriate U.S. GAAP, SEC reporting, and compliance expertise, and inadequate procedures for identifying certain related-party transactions.
- The company stated that it did not consult TPS during the relevant period regarding accounting principles, audit opinions, disagreements, or reportable events.
- Briggs & Veselka provided a letter to the SEC addressing the company’s disclosures; the letter was filed as Exhibit 15.1.
Important Facts to Verify
- Verify the correct registrant and corporate identity, because the filing names Happiness Development Group Limited while the request metadata names Paranovus Entertainment Technology Ltd.
- Review Exhibit 15.1 for Briggs & Veselka’s response to the company’s statements.
- Assess whether the disclosed internal-control weaknesses were remediated before the fiscal year ended March 31, 2022.
- Confirm TPS Thayer, LLC’s audit conclusions in the company’s subsequent annual report on Form 20-F.