Filing Analysis
🔍 Auditor Change
Filed May 10, 2024
🔴 CRITICAL
C2 Blockchain, Inc. has dismissed its independent auditor, BF Borgers CPA PC, following an SEC Staff Statement regarding the firm's ability to practice before the Commission. The company has appointed Michael Gillespie as & Associates, PLLC as its new auditor.
🚩 Red Flags
- Auditor change triggered by SEC enforcement action (Rule 102(e) Order) against the previous firm.
- Previous audit reports contained 'going concern' explanatory paragraphs for FY 2022 and FY 2023.
- Reported material weaknesses in internal control over financial reporting.
- The dismissal of an auditor due to regulatory restrictions on that auditor is a high-risk event for micro-cap companies.
📋 Key Facts
- Dismissal of BF Borgers CPA PC approved by the Board on May 3, 2024.
- BF Borgers is currently not permitted to appear or practice before the SEC due to a Rule 102(e) Order.
- The company previously received an explanatory paragraph in audit reports regarding its ability to continue as a going concern for fiscal years ended June 30, 2022 and 2023.
- Michael Gillespie as & Associates, PLLC was engaged on May 9, 2024, to review interim quarterly reports and upcoming fiscal year audits.
- The company noted existing material weaknesses in internal control over financial reporting.
Disclaimer: This analysis is generated by AI and is for informational purposes only.
It does not constitute financial advice, investment recommendations, or an offer to buy or sell securities.
Always review the original SEC filings and consult a financial advisor before making investment decisions.