SEC Form 8-K Summary
Business context and reporting period
HF Enterprises Inc. filed a Form 8-K under Item 4.01 on January 12, 2021, reporting a change in its independent registered public accounting firm. The filing concerns the audit of the fiscal year ended December 31, 2020. The provided filing identifies the registrant as HF Enterprises Inc.; the request metadata identifies Alset Inc.
Financial metrics and liquidity
The filing does not provide revenue, earnings, cash flow, margins, debt, liquidity, balance sheet figures, or other operating financial metrics.
Material changes versus the prior comparable period
- On January 12, 2021, the Board, following the Audit Committee’s recommendation, dismissed Rosenberg Rich Baker Berman, P.A. as the Company’s independent registered accountant.
- The former auditor’s reports on the financial statements for the years ended December 31, 2018 and December 31, 2019 contained no adverse opinion or disclaimer and were not qualified or modified regarding uncertainty, audit scope, or accounting principles.
- The Company reported no disagreements with the former auditor regarding accounting principles, financial statement disclosure, or audit scope or procedures during those years or the subsequent interim period.
- The Company also reported no reportable events as defined under Item 304(a)(1)(v) of Regulation S-K.
- On January 12, 2021, the Company engaged Briggs & Veselka Co. as its independent registered public accounting firm for the fiscal year ended December 31, 2020.
Guidance, outlook, risks, contingencies, and unusual items
The filing provides no earnings guidance or business outlook. The change in auditor is the principal reported corporate event. The Company stated that it had not consulted Briggs & Veselka Co. during the two most recent fiscal years or through the engagement date regarding specified accounting matters, anticipated audit opinions, disagreements, or reportable events.
The Company requested a letter from the former auditor addressing the Company’s statements. Exhibit 16.1 is identified as a letter from Rosenberg Rich Baker Berman, P.A. dated January 15, 2021. The report was signed January 15, 2021 by Rongguo Wei, Co-Chief Financial Officer.
Investor verification points
- Verify the former auditor’s Exhibit 16.1 letter and whether it agrees with the Company’s disclosures.
- Confirm the effective engagement and audit status of Briggs & Veselka Co. for the December 31, 2020 fiscal year.
- Review the Company’s subsequent periodic filings for the 2020 audited financial statements, audit opinion, and any subsequently disclosed accounting or control issues.
- Reconcile the registrant name in this filing, HF Enterprises Inc., with the metadata reference to Alset Inc.