Business Context and Reporting Period
Company: Sunshine Biopharma, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: May 3, 2024
Reporting Period: Immediate event reporting regarding a change in the registrant's certifying accountant.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on corporate governance and accounting matters.
Material Changes
Change in Certifying Accountant:
- Previous Auditor: BF Borgers CPA, PC ("Borgers") audited the fiscal years ended December 31, 2023, and 2022.
- Reason for Change: The SEC announced a settlement with Borgers on May 3, 2024, regarding failures to conduct audits in accordance with PCAOB standards. As part of the settlement, Borgers received a permanent ban on appearing or practicing before the SEC.
- Action Taken: The Company dismissed Borgers as its independent registered public accounting firm effective May 3, 2024. This decision was approved by the Audit Committee.
Audit History:
- Borgers' reports for the two most recent fiscal years did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
- No disagreements existed between the Company and Borgers on accounting principles, practices, or auditing scope during the two most recent fiscal years and the interim period through May 3, 2024.
- No reportable events occurred during the same period.
Guidance, Outlook, and Risks
Management Commentary: The filing confirms the dismissal of the auditor was a direct result of the SEC's permanent ban on the firm. The Company has requested a letter from Borgers confirming agreement with the statements made in this filing, which is filed as Exhibit 16.1.
Risks and Contingencies: The primary risk highlighted is the regulatory action against the former auditor, necessitating an immediate change in the Company's independent accounting firm. The filing does not provide specific forward-looking guidance or financial outlook.
Investor Verification Checklist
- Verify the appointment of a new independent registered public accounting firm to replace Borgers.
- Review Exhibit 16.1 (Letter from Borgers) to confirm the auditor's agreement with the Company's statements regarding the dismissal.
- Monitor future filings for the impact of the auditor change on the audit of the 2024 fiscal year.
- Confirm that no undisclosed disagreements or reportable events existed prior to the dismissal.