DewmarInternational BMC, Inc. (OTCMKTS:DEWM) Files An 8-K Changes in Registrant’s Certifying Accountant
Item 4.01 Changes in Registrants Certifying Accountant.
Previous Independent Registered Public Accounting
Firm
On April 21, 2017, Dewmar International BMC, Inc. (the Company)
was notified by e-mail of the resignation of its independent
public accounting firm, MaloneBailey, LLP (MB), effective that
date. The Companys Board of Directors accepted the resignation of
MB as of May 8, 2017.
The report of MB on the Companys consolidated financial
statements for the Companys fiscal year ended December 31, 2013
(the only year during the last two fiscal years in which MB
performed an audit on the financial statements of the Company)
did not contain any adverse opinion or a disclaimer of opinion
and were not qualified or modified as to uncertainty, audit scope
or accounting principles, except that the report included an
explanatory paragraph describing conditions that raised
substantial doubt about the Companys ability to continue as a
going concern.
During the fiscal years ended December 31, 2013, and for the
period during which MB was engaged as the Companys independent
registered public accounting firm (from June 6, 2013 through
April 21, 2017), there were no reportable events, as defined in
Item 304(a)(1)(v) of Regulation S-K, except for material
weaknesses described in Item 9A of the Companys Annual Report on
Form 10-K for the year ended December 31, 2013 and MB having
advised the Company that it identified certain deficiencies in
the internal control over financial reporting that constitute a
material weakness principally related to the lack of policies and
procedure to ensure accurate, timely and complete accounting and
reporting for external purposes in accordance with U. S.
generally accepted accounting principles.
Except for the disagreement described in the immediately previous
paragraph, during the fiscal year ended December 31, 2013, and
for the subsequent interim period ended April 21, 2017, there
were no disagreements with MB 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 MB, would have caused MB to make reference
to the subject matter of the disagreements as defined in Item 304
of Regulation S-K in connection with any reports its reports.
Prior to its resignation, on April 5, 2017, MB stated that it had
become aware of a complaint for forfeiture filed against a former
customer of the Company. The Company terminated business with the
customer in 2015. The complaint filed in February 2017, alleges a
number of civil infractions committed by the former customer.
Despite the Companys indication that it does not appear in any
capacity in the complaint (nor does the Company have assets
listed as property being sought for forfeiture in the complaint),
MB indicated that it believes that if the complaint were further
investigated, the information may have caused MB to be unwilling
to be associated with the financial statements of the Company.
Due to MBs resignation, MB did not conduct such further
investigation.
The Company believes that the civil complaint does not implicate
the Company in any way, that further investigation into the
complaint would not change this determination, and therefore
would not have any impact on the financial statements of the
Company, as previously prepared for the fiscal year ending
December 31, 2014.
Besides the foregoing matter, during the fiscal years ended
December 31, 2015 and 2016 and the subsequent interim period
ended April 21, 2017, there were: (i) no disagreements with MB 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 MB, would
have caused MB to make reference to the subject matter of the
disagreements as defined in Item 304 of Regulation S-K in
connection with any reports its reports; and (ii) there were no
reportable events as such term is described in Item 304 of
Regulation S-K.
The Company provided MB with a copy of this disclosure set forth
under this Item 4.01 and requested that MB furnish a letter
addressed to the Securities and Exchange Commission stating
whether or not it agrees with the above statements. A copy of the
letter from MB is attached hereto as Exhibit 16.1.
New Independent Registered Public Accounting
Firm
On April 28, 2017, the Companys Board of Directors appointed BF
Borgers CPA PC (BFB) of Lakewood, Colorado as the Companys
independent registered public accounting firm for the Companys
fiscal years ending December 31, 2015 and 2016.
During the fiscal years ended December 31, 2014, 2015 and 2016
and the subsequent interim period ended April 28, 2017, neither
the Company nor anyone acting on its behalf consulted with BFB
regarding: (i) 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, and neither a written report not oral advice was
provided that BFB concluded was an important factor considered by
the Company in reaching a decision as to the accounting, auditing
or financial reporting issue; or (ii) any matter that was either
the subject of a disagreement between the Company and its
predecessor auditor as described in Item 304(a)(1)(iv) of
Regulation S-K or a reportable event as described in Item
304(a)(1)(v) of Regulation S-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The exhibit listed in the following Exhibit Index is filed as
part of this Current Report on Form 8-K.
Exhibit No. |
Description |
|
16.1 |
MaloneBailey, LLP Letter to the Securities and Exchange |
About DewmarInternational BMC, Inc. (OTCMKTS:DEWM)
Dewmar International BMC, Inc. is a brand management services company. The Company is engaged in developing, acquiring and/or licensing new products and brands for launch or distribution in both national and international markets. The Company’s brands include Lean Slow Motion Potion, C+Swiss Hemp Ice Tea, Canna Energy and Chillo. Lean Slow Motion Potion is a relaxation-carbonated potion. Lean Slow Motion Potion is available in approximately three flavors: Yella, Purp and Easta Pink. Lean Slow Motion Potion is distributed and sold in approximately 30 states and over three countries, as well as online. Its C+Swiss Hemp Ice Tea is a hemp-based black tea infused with lemon juice and hemp seed extract. Canna Energy is a gluten-free energy drink. Canna Energy is available in various ranges, such as Canna Energy Lite, Canna Energy Mango and Canna Energy Original. Chillo is a hemp energy beverage designed for recreational activities. U.S. Hemp Corporation is a subsidiary of the Company. DewmarInternational BMC, Inc. (OTCMKTS:DEWM) Recent Trading Information
DewmarInternational BMC, Inc. (OTCMKTS:DEWM) closed its last trading session down -0.00010 at 0.00190 with 1,762,646 shares trading hands.