Business Context and Reporting Period
This Form 6-K filing by Kaixin Auto Holdings (also referred to as Kaixin Holdings) covers the month of July 2019. The report discloses a material corporate governance event: the resignation of the company's independent registered public accounting firm, UHY LLP, effective July 16, 2019.
Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on the change in the registrant's certifying accountant and does not contain financial statement data.
Material Changes
- Accountant Resignation: UHY LLP resigned as the independent accountant effective July 16, 2019, after serving from the company's inception on November 28, 2016.
- Reason for Resignation: The resignation is described as common practice following the completion of special purpose acquisition company (SPAC) business combinations, specifically referencing the combination involving Kaixin's predecessor, CM Seven Star Acquisition Corporation.
- Audit History: UHY's reports for fiscal years ended December 31, 2017, and 2018, were unqualified and did not contain adverse opinions, disclaimers, or modifications regarding uncertainty, audit scope, or accounting principles.
- Disagreements: There were no disagreements between the Company and UHY regarding accounting principles, practices, financial statement disclosures, or auditing scope/procedures during the engagement period.
Outlook, Risks, and Management Commentary
Management has initiated a search process to identify a successor independent accounting firm. The company stated it will disclose the engagement of a new firm once the process is completed. The filing includes a letter from UHY (Exhibit 99.1) confirming their agreement with the disclosures in this report. No specific financial risks, contingencies, or unusual items were detailed in this text.
Key Facts for Investor Verification
- Verify the identity and qualifications of the new independent accounting firm once the search is complete.
- Confirm that the resignation of UHY LLP was not related to any undisclosed accounting irregularities or disagreements, as stated in the filing.
- Monitor future filings for the appointment of the successor auditor and any potential delays in the audit of subsequent financial periods.