Zhongchao Inc. Form 6-K Summary
Business Context and Reporting Period
Zhongchao Inc. filed a Form 6-K for September 2022, dated September 27, 2022. The filing reports a change in the Company’s independent registered public accounting firm.
Key Financial Information
This filing does not provide current-period revenue, profit, cash flow, margins, debt, liquidity, or other operating financial metrics.
Marcum Asia CPAs LLP’s audit reports on the Company’s consolidated financial statements for the years ended December 31, 2021 and 2020 contained no adverse opinion, disclaimer of opinion, or qualification or modification relating to uncertainty, audit scope, or accounting principles.
Material Changes
- Effective September 27, 2022, the Company dismissed Marcum Asia CPAs LLP, formerly known as Marcum Bernstein & Pinchuk LLP.
- The Company appointed Prager Metis CPAs, LLC as its new independent registered public accounting firm.
- The change was approved by the audit committee and board of directors after an evaluation process.
- The Company stated that the change was not due to disagreements with MarcumAsia regarding accounting principles or practices, financial statement disclosure, or audit scope or procedures.
Guidance, Risks, Contingencies, and Unusual Items
- The Company disclosed material weaknesses and other internal-control deficiencies, including significant deficiencies, during the relevant periods.
- Other than those internal-control matters, the Company stated that no reportable events occurred during the two fiscal years ended December 31, 2021 and 2020, or subsequently through MarcumAsia’s termination.
- Prager Metis had not previously been consulted by the Company during the two most recent fiscal years or subsequent interim periods regarding specified accounting transactions, audit opinions, disagreements, or reportable events.
- The filing provides no financial guidance or forward-looking operating outlook.
Investor Verification Items
- Review Exhibit 99.1, MarcumAsia’s letter to the SEC dated September 27, 2022, for its response to the Company’s disclosures.
- Assess the nature and remediation status of the disclosed material weaknesses and other internal-control deficiencies.
- Confirm the scope and timing of Prager Metis’s initial audit engagement and any subsequent auditor communications.
- Review the Company’s annual report and later filings for updated financial results, liquidity, debt, and any developments related to internal controls.