SMARTHEAT INC. (OTCMKTS:HEAT) Files An 8-K Changes in Registrant’s Certifying Accountant
Item 4.01 CHANGES IN REGISTRANT’S CERTIFYING ACCOUNTANT.
On April 29, 2019, Smartheat Inc. (the “Company”) was informed by MJF & Associates (“MJF”) of the departure of the audit partners formerly assigned to the Company and that, as such, MJF was terminating its relationship and resigning as the Company’s independent registered principal accounting firm, effective May 31, 2019. On June 6, 2019, MJF & Associates, APC (“MJF”) notified the Securities and Exchange Commission that MJF resigned as the independent public accountants for the Company effective on May 31, 2019.
MJF served as the auditors of the Company’s consolidated financial statements for the period from December 31, 2014 through December 31, 2018, subject to the discussion below. On June 23, 2019, the Company management subsequently inquired of MJF if it would consider being reinstated as the Company’s independent registered public accounting firm and to complete the audit of the Company’s consolidated financial statements for the year ended December 31, 2018 until on or about July 15, 2019 at which time they would resign as the Company’s independent registered public accounting firm.
The reports of MJF on the Company’s consolidated financial statements for the Company’s year from December 31, 2014 to December 31, 2017 did not contain any adverse opinion or a disclaimer of opinion and were not qualified or modified, audit scope or accounting principle, except that there was an emphasis of matter paragraph relating to going concern uncertainty and a note to the consolidated financial statements describing conditions that raised substantial doubt about the Company’s ability to continue as a going concern for the years ended December 31, 2014 through December 31, 2017.
From January 12, 2015 through May 31, 2019, the period during which the MJF was engaged as the Company’s independent registered public accounting firm, there were no disagreements with MJF on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of MJF, would have caused MJF to make reference to the subject matter of the disagreements as defined in Item 304 of Regulation S-K in connection with any reports it would have issued, and there were no “reportable events” as such term is described in Item 304 of Regulation S-K.
The Company has provided the MJF with a copy of the foregoing disclosure and requested that the MJF furnish the Company with a letter (the “Consent Letter”) addressed to the Securities and Exchange Commission stating whether or not it agrees with such disclosure. MJF has issued the Consent Letter which is attached herein as Exhibit 16.3.
On July 2, 2019, the Board of Directors of the Company engaged MJF as the Company\’s independent registered public accounting firm for the year ended December 31, 2018, subject to the condition that the audit be completed and that the 10-K for such period be filed with the SEC on or about July 15, 2019.
As previously stated MJF was the independent public account for the Company for the period from January 12, 2015 through May 31, 2019 and as such the information required by Item 304(a)(2) of Regulation S-K do not apply.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
SMARTHEAT INC. Exhibit
EX-16.02 2 ex_149287.htm EXHIBIT 16.02 ex_149287.htm EXHIBIT 16.02 [MJF & Associates Letterhead] June 6,…
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About SMARTHEAT INC. (OTCMKTS:HEAT)
SmartHeat Inc. is a holding company. The Company, through its subsidiaries, designs, manufactures and sells heat pumps in the People’s Republic of China. The Company operates through the Heat Pump (HP) segment. Its HP segment subsidiaries produce heat pumps in sizes that have applications primarily in industrial. Its HP subsidiaries design and build specific to customer specifications and particular operating conditions. The Company’s products provide a solution to energy consumption and air pollution problems in China. The Company’s components generally include pumps, valves, pipes and electronic meters purchased from various international and domestic suppliers. The Company’s products are used in the industrial, residential and commercial markets. Its customer base consists of state-owned enterprises diversified across a range of end markets in China. The Company’s subsidiaries include Heat HP Inc. and Heat PHE Inc. Its subsidiaries produce heat pumps in Shenyang China.
