AXAR ACQUISITION CORP. (NASDAQ:AXAR) Files An 8-K Changes in Registrant’s Certifying Accountant
Item 4.01. Changes in Registrants Certifying Accountant.
On November 10, 2016, the Audit Committee (the Committee) of the
Board of Directors of Axar Acquisition Corp. (the Company)
engaged WithumSmith Brown, PC (Withum) as the Companys
independent registered public accounting firm, effective
immediately. The Committee dismissed KPMG, LLP (KPMG) as the
Companys independent registered public accounting firm on
November 10, 2016.
During the Companys fiscal years ended December 31, 2015 and 2014
and the subsequent period through November 10, 2016, the date the
Company engaged Withum, the Company did not consult with Withum
regarding the application of accounting principles to a specified
transaction, either completed or proposed, or the type of audit
opinion that might be rendered on the Companys financial
statements. Withum did not provide any written reports or oral
advice considered by the Company in reaching a decision as to the
accounting, auditing or financial reporting or any of the matters
or events set forth in Item 304 of Regulation S-K.
During the period from July 25, 2014 (inception) to December 31,
2014, the year ended December 31, 2015 and the subsequent period
through November 10, 2016, the date the Company dismissed KPMG,
(i) there were no disagreements with KPMG on any matter of
accounting principles or practices, financial statement
disclosure, or auditing scope or procedure that, if not resolved
to their satisfaction, would have caused them to make reference
to the subject matter of the disagreement in connection with its
report, or (ii) reportable events as defined in Item 304(a)(1)(v)
of Regulation S-K.
The audit report of KPMG on the balance sheets of the Company as
of December 31, 2015 and 2014 and the related statements of
operations, stockholders equity, and cash flows for the year
ended December 31, 2015 and period from July 25, 2014 (inception)
to December 31, 2014 did not contain an adverse opinion or a
disclaimer of opinion, nor was it qualified or modified as to
uncertainty, audit scope or accounting principles except as
follows:
KPMGs report on the balance sheets of the Company as of December
31, 2015 and 2014 and the related statements of operations,
stockholders equity, and cash flows for the year ended December
31, 2015 and period from July 25, 2014 (inception) to December
31, 2014 contained a separate paragraph stating that The
accompanying financial statements have been prepared assuming the
Company will continue as a going concern. As discussed in Note 2
to the financial statements, the Company will cease all
operations, except for the purpose of winding up, redeem all
public shares outstanding and dissolve and liquidate in the event
that the Company does not consummate an initial business
combination by October 7, 2016. This condition raises substantial
doubt about its ability to continue as a going concern. The
financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
The Company has provided KPMG a copy of the above disclosures and
has requested that KPMG furnish it with a letter addressed to the
U.S. Securities and Exchange Commission stating whether or not it
agrees with the above statements. A copy of such letter, dated
November 15, 2016, is filed as Exhibit 16.1 to this Current
Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
The Company incorporates herein by reference the Exhibit Index
following the page to this Current Report on Form 8-K.
About AXAR ACQUISITION CORP. (NASDAQ:AXAR)
