Business Context and Reporting Period
This Form 8-K is a current report filed by Greenpro Capital Corp. on December 22, 2017. The filing discloses a material change in the Company's principal independent registered public accounting firm.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity for the current period. However, it references historical audit findings:
- The prior auditor, Anton & Chia, LLP, issued an audit report for the fiscal year ended December 31, 2015, that raised substantial doubt about the Company's ability to continue as a going concern due to a net loss for that year.
- Audit reports for fiscal years ended December 31, 2016, and 2015 contained no adverse opinion or disclaimer of opinion.
Material Changes Versus Prior Period
The primary material change reported is the replacement of the Company's principal accountant:
- Dismissed: Anton & Chia, LLP ("A&C") was dismissed as principal accountant on December 18, 2017.
- Engaged: Weinberg & Company P.A. ("Weinberg") was engaged as the new principal accountant effective immediately on December 18, 2017.
- Re-audit: Weinberg was also engaged to perform a re-audit of the financial statements for the fiscal year ended December 31, 2016.
Guidance, Outlook, Risks, and Contingencies
Management Commentary and Risks:
- The change in accountant was approved by the Company's Audit Committee.
- The Company stated there were no "disagreements" with the former auditor (A&C) regarding accounting principles, financial statement disclosure, or auditing scope during the two most recent fiscal years or the interim period through December 18, 2017.
- There were no "reportable events" as defined by Regulation S-K during the same period.
- The Company has requested a letter from Weinberg confirming their agreement with the statements in this filing, which will be filed as an exhibit within two business days of receipt.
Important Facts for Investor Verification
- Verify the reasons for the auditor change, specifically whether the re-audit of 2016 financial statements uncovers material adjustments.
- Review the upcoming letter from Weinberg & Company P.A. to confirm their stance on the Company's financial reporting.
- Monitor the Company's going concern status, given the prior auditor's 2015 report raised substantial doubt due to net losses.
- Check for the filing of the amended Form 8-K containing the new auditor's response letter.