CannAwake Corporation (OTCMKTS: CANX) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review

CannAwake Corporation (OTCMKTS: CANX) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review

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During the preparation of its financial statements for the filing of its Quarterly Report on Form 10-Q for the nine-month period ended September 30, 2018, on December 6, 2018, CannAwake Corporation (the “Company”) was advised by MaloneBailey, LLP, its independent registered public accounting firm, to re-evaluate its accounting relating to, and to consider restating, its previously issued reviewed, unaudited consolidated financial statements (the “Financial Statements”) included in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018 filed with the Securities and Exchange Commission on October 31, 2018 (the “Quarterly Report”). The Company’s unaudited consolidated financial statements in the Quarterly Report (the “June 30, 2018 Financial Statements”) in the Consolidated Statement of Operations erroneously provided for a deemed dividend (the “Preferred Deemed Dividend”) on the Company’s Series A Preferred Stock held by its controlling stockholder.

The Company’s management consulted with its advisors on this matter, and on December 6, 2018, management, with the advice of its advisors and after further discussions with its auditors, determined that the June 30, 2018 Financial Statements included in the Quarterly Report should no longer be relied upon and would be restated to correct the accounting. Accordingly, the provision for the Preferred Deemed Dividend has been eliminated in the Company’s restated Consolidated Statements of Operations (unaudited) for the three and six-month periods ended June 30, 2018 to be filed shortly following the filing of this Current Report in Amendment No. 1 to the Quarterly Report.

The Company’s management has discussed the matters disclosed in this Item 4.02 of this Current Report with MaloneBailey, LLP, the Company’s independent registered public accounting firm.

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