Business Context and Reporting Period
Royalty Management Holding Corporation filed a Form 8-K dated May 3, 2024, under Item 4.01 to report a change in its independent registered public accounting firm.
Key Financial Information
The filing does not provide current revenue, profit, cash flow, margins, debt, liquidity, or other operating metrics. BF Borgers CPA PC had audited the Company’s consolidated financial statements for the fiscal years ended December 31, 2023 and December 31, 2022.
Material Changes Versus the Prior Period
- On May 3, 2024, the Audit Committee approved the dismissal of BF Borgers CPA PC as the Company’s independent registered public accounting firm.
- BF Borgers’ reports for 2023 and 2022 were not adverse or disclaimed and were not qualified or modified, except for explanatory paragraphs regarding the Company’s ability to continue as a going concern.
- The Company reported no accounting, financial statement disclosure, or audit scope disagreements with BF Borgers during the applicable periods through May 3, 2024.
- The Company reported no reportable events other than material weaknesses in internal control over financial reporting previously disclosed in its Annual Report.
Guidance, Risks, Contingencies, and Unusual Items
- The filing identifies a going-concern explanatory paragraph in the prior audit reports, indicating uncertainty regarding the Company’s ability to continue as a going concern.
- The filing references previously disclosed material weaknesses in internal control over financial reporting.
- The change in auditor followed the SEC’s May 3, 2024 Staff Statement concerning the Rule 102(e) order against BF Borgers, which stated that BF Borgers was not currently permitted to appear or practice before the SEC.
- No successor auditor was identified in the provided filing text.
- No financial statements or exhibits were filed with this Form 8-K.
Investor Verification Items
- Verify the Company’s subsequent auditor appointment and the timing of the transition.
- Review the 2023 Annual Report for details on the going-concern uncertainty and material weaknesses in internal control.
- Assess whether the auditor change affects the timing, reliability, or filing status of future financial statements.
- Review any subsequent SEC filings for additional disclosures regarding BF Borgers, the Rule 102(e) order, or restatement and re-audit requirements.