CALMARE THERAPEUTICS INCORPORATED (OTCMKTS:CTTC) Files An 8-K Changes in Registrant’s Certifying AccountantITEM 4.01.
On December 11, 2017, Calmare Therapeutics Incorporated (the “Company”) was notified by BDO USA, LLP (the “Accountants”) that the Accountants have resigned as the Company’s independent auditors. The Company has commenced the process of identifying another independent, outside auditor for the Company and will disclose the selection when made on a subsequent current report on Form 8-K.
The Accountants have not yet provided reports on the Company’s financial statements and have therefore not provided an adverse opinion or disclaimer of opinion or qualified or modified its opinion.
The Company has not had any disagreements with the Accountants.
In the letter to the Audit Committee on December 11, 2017, the Accountants stated that the following areas “appear to represent” material weaknesses in the Company’s internal controls over financial reporting: (i) revenue recognition; (ii) inventory; (iii) deferment of wages and/or commissions; (iv) defaults under loans; (v) lapse of D&O insurance coverage; (vi) loans from the Chairman of the Audit Committee to the Company; (vii) certain tax considerations that have not been addressed by the Company; and (viii) the failure of the Company to provide detailed analysis of the accounting and reporting considerations for most ongoing or new debt and equity transactions. The Accountants recommended that the Audit Committee evaluate with management the weaknesses noted above.
Our Audit Committee plans to pursue these matters and will authorize the Accountants to respond fully to the inquiries of our successor accountant concerning the subject matter addressed in its resignation letter.
The Company previously provided to the Accountants a copy of the originally-filed Form 8-K concerning this matter and requested that the Accountants furnish a letter to the Securities and Exchange Commission stating whether the Accountants agree with the statements of the originally-filed Form 8-K. A copy of the Accountant’s letter dated December 19, 2017, and which was received by the Company on December 19, 2017, is attached as Exhibit 16.1 hereto.
| ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS |
| 16.1 | Letter of BDO USA, LLP dated December 19, 2017 |
CALMARE THERAPEUTICS Inc ExhibitEX-16.1 2 s108510_ex16-1.htm EXHIBIT 16.1 Exhibit 16.1 Tel: 203-905-6300 Fax: 203-905-6301 www.bdo.com 1055 Washington Blvd,…To view the full exhibit click here
About CALMARE THERAPEUTICS INCORPORATED (OTCMKTS:CTTC)
Calmare Therapeutics Incorporated (CTI) is a medical device company. The Company is engaged in developing and commercializing products and technologies for chronic neuropathic pain and wound care affliction patients. The Company’s medical device, the Calmare Pain Therapy Device (the Calmare Device), is a non-invasive and non-addictive modality that can treat chronic, neuropathic pain. The Company offers a portfolio of technologies in life, electronic, nano and physical sciences. The Company’s technology portfolio includes CALMARE pain therapy treatment, neuroprotection and cognitive enhancement, sexual dysfunction therapeutic, skin pigment enhancer, wound sealant, preparation of ordered multi-layer films, silica thin films, structural steel fissure detection paint, public key encryption, growing single crystals, and video compression and moving picture experts group (MPEG)-4. The Company’s subsidiary is Vector Vision, Inc.
