BIOSTAR PHARMACEUTICALS, INC. (NASDAQ:BSPM) Files An 8-K Changes in Registrant’s Certifying AccountantItem 4.01Change in Registrant’s Certifying Accountant
Resignation of Mazars CPA Limited
On January 31, 2018, Mazars CPA Limited tendered its resignation as Biostar Pharmaceuticals, Inc.’s independent registered public accounting firm (“Mazars”), effective as of the same date. Mazars’ determination not to seek re-appointment as the Company’s independent auditors followed its policy to withdraw from the market in auditing public companies in the U.S.
Mazars reported on the Company’s financial statements for the years ended as of December 31, 2016 and 2015, respectively. The Mazars reports on the Company’s financial statements for the fiscal periods as of December 31, 2016 and 2015, respectively, did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles except that the Mazars report on the Company’s financial statements for the fiscal years ended December 31, 2016 and 2015 draw attention to (1) deposits paid for intended acquisitions, (2) uncertainty whether the Company was able to continue as a going concern as the Company had experienced a substantial decrease in sales volume which resulting a net loss for the years ended December 31, 2016 and 2015 and part of the Company’s buildings and land use rights were subject to litigation between an independent third party and the Company’s Chief Executive Officer, and the title of these buildings and land use rights had been seized by the PRC Courts so that the Company could not be sold without the Court’s permission, and that the Company previously violated its financial covenants included in certain short-term bank loans.
During the Company’s two most recent fiscal years ended December 31, 2016 and the interim period through the effective date of Mazars’ resignation, (i) there were no disagreements with Mazars on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to Mazars’ satisfaction, would have caused it to make reference to the subject matter of such disagreements in its reports on the Company’s consolidated financial statements for such year, and (ii) there were no reportable events as defined in Item 304(a)(1)(v) of Regulation S-K.
The Company has provided Mazars with a copy of the foregoing disclosures and requested that it furnish a letter to the Securities and Exchange Commission stating whether or not it agrees with the above statements. A copy of such letter is filed as Exhibit 16.1 to this Current Report on Form 8-K.
Engagement of Centurion ZD CPA Limited
On January 31, 2018, the Company engaged Centurion ZD CPA Limited, located at Unit 1304, 13/F, Two Harbourfront, 22 Tak Fung Street, Hunghom, Hong Kong (“Centurion”), as its new independent registered public accounting firm to audit the Company’s financial statements for the year ended December 31, 2017 and the related consolidated statement of operations and comprehensive income, consolidated statement of equity and consolidated statement of cash flows for the year then ended; Centurion will also review the quarterly and year-to-date 2018 consolidated financial statements of the Company to be included in the Company’s quarterly filings on Form 10-Q for 2018. The engagement was reviewed, recommended and approved by the Audit Committee, and will be effective as of January 31, 2018.
During each of the Company’s two most recent fiscal years and through the date of this report, (a) the Company has not engaged Centurion as either the principal accountant to audit the Company’s financial statements, or as an independent accountant to audit a significant subsidiary of the Company and on whom the principal accountant is expected to express reliance in its report; and (b) the Company or someone on its behalf did not consult Centurion with respect to (i) either: 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 Company’s financial statements, or (ii) any other matter that was either the subject of a disagreement or a reportable event as set forth in Items 304(a)(1)(iv) and (v) of Regulation S-K.
Item 9.01Financial Statements and Exhibits
Biostar Pharmaceuticals, Inc. ExhibitEX-16.1 2 ex16-1.htm EX-16.1 Exhibit 16.1 Our ref.: PS/SC/B397/AUD3/pp February 2,…To view the full exhibit click
About BIOSTAR PHARMACEUTICALS, INC. (NASDAQ:BSPM)
Biostar Pharmaceuticals, Inc. (Biostar) is a holding company. The Company, through its subsidiary, Shaanxi Biostar Biotech, Ltd. (Shaanxi Biostar), and its variable interest entities (VIEs), Shaanxi Aoxing Pharmaceutical Co., Ltd. (Aoxing Pharmaceutical) and Shaanxi Weinan Huaren Pharmaceuticals Ltd. (Shaanxi Weinan), develops, manufactures and markets pharmaceutical products for various diseases and conditions in the People’s Republic of China (PRC or China). The Company offers over-the-counter (OTC) products and prescription-based pharmaceuticals. The Company’s products are sold in approximately 30 provinces in the PRC through a network of over 60 distributors and through approximately 230 sales people. The Company’s products include XinAoxing Oleanolic Acid Capsule, Ganwang Compound Paracetamol Capsule, Tianqi Dysmenorrhea Capsule, Compound Paracetamol and Amantadine Hydrochloride Tablets, Deafness Tongqiao pills and Huangyangning Tablets.