HONGLI CLEAN ENERGY TECHNOLOGIES CORP. (NASDAQ:CETC) Files An 8-K Changes in Registrant’s Certifying Accountant
ITEM 4.01
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CHANGES IN REGISTRANTS CERTIFYING ACCOUNTANT. |
(a)Effective April 18, 2017, the registrant dismissed KSP GROUP,
INC. (KSP) as its independent auditors.This action was approved
by the Audit Committee of the registrants Board of Directors (the
Board), and ratified by the Board. KSP has not issued an audit
report or other opinion on any of the financial statements of the
registrant, so there was no adverse opinion, disclaimer,
qualification or modification as described in Item 304(a)(1)(ii)
of Regulation S-K.
As noted above, KSP has advised the registrant that KSP believes
a disagreement existed with the registrant at the time KSP was
advised of its dismissal. Specifically, KSP believes that the
registrant needed to obtain a valuation report from an
independent valuation firm to assess whether certain assets
reflected in the financial statements of the registrant were
properly valued at the time of acquisition and net of impairment
during subsequent periods. KSPs position is based on its belief
that the significant impairment and loss on disposal recorded
during the period ended March 31, 2016 may have occurred prior to
that period. KSP discussed the subject matter of this request
with management of the registrant but did not discuss the issue
with the audit or similar committee of the board of directors or
with the board of directors itself. The registrant has authorized
the KSP to respond fully to the inquiries of the successor
auditor concerning the subject matter of the disagreement.
The registrant provided KSP with a copy of the disclosures
contained herein and requested that KSP furnish it with a letter
addressed to the Securities and Exchange Commission stating
whether or not KSP agrees with its statements in this Item 4.01.
A copy of the letter furnished by KSP in response to such
request, is filed as Exhibit 16 to this Form 8-K.
(b)Effective April 19, 2017, the registrant engaged Wei Wei Co.,
LLP, Certified Public Accountants (Wei), as its independent
auditors to audit the registrants financial statements for the
year ended June 30, 2016 and to review the registrants financial
statements for the quarters ended September 30, 2016, December
31, 2016 and March 31, 2017. The decision to engage Wei was
recommended by the Audit Committee of the registrants Board of
Directors.
During the registrants two most recent fiscal years and through
the date of the engagement of Wei, the registrant did not consult
with Wei regarding either (1)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 registrants financial statements, or (2)any matter that was
either the subject of a disagreement (as defined in
Item304(a)(1)(iv) of Regulation S-K) or a reportable event (as
defined in Item304(a)(1)(v) of Regulation S-K).
Prior to the engagement of Wei, Wei did not provide the
registrant with any written or oral advice that Wei concluded was
an important factor considered by the registrant in reaching any
decision as to any accounting, auditing or financial reporting
issue.
| Item 8.01 | Other Events |
On April 13, 2017, the registrant filed a current report on Form
8-K announcing that it had received a letter dated April 7, 2017
from the NASDAQ Stock Market LLC notifying the registrant that
its common stock would be delisted from the NASDAQ Capital
Market. The letter provided that the registrant could request a
review of the determination by timely submitting an appeal and
request a review by the NASDAQ Listing and Hearing Review
Council. The registrant requested an appeal and on April 24,
2017, the registrant wired payment to The NASDAQ Stock Market LLC
in connection with the requested appeal.
| Item 9.01 | Financial Statements and Exhibits. |
The following exhibits are furnished as part of this Current
Report on Form 8-K:
| Exhibit | Description | |
| 16.1 | Letter from KSP GROUP, INC. |
About HONGLI CLEAN ENERGY TECHNOLOGIES CORP. (NASDAQ:CETC)
Hongli Clean Energy Technologies Corp., formerly SinoCoking Coal and Coke Chemical Industries, Inc., is an energy production company. The Company focuses on providing clean burning energy located in the People Republic of China. The Company primarily generates synthetic gas. The Company’s business operations are conducted by a variable interest entity (VIE), Henan Pingdingshan Hongli Coal & Coking Co., Ltd., (Hongli). The Company generates synthetic gas (Syngas), which is converted from coke using the coke gasification facility. The Company’s Stage I facility has a designed annual coke gasification capacity of 438,000,000 cubic meters of syngas or 50,000 cubic meters of syngas per hour. HONGLI CLEAN ENERGY TECHNOLOGIES CORP. (NASDAQ:CETC) Recent Trading Information
HONGLI CLEAN ENERGY TECHNOLOGIES CORP. (NASDAQ:CETC) closed its last trading session 00.00 at 4.63 with 4,022,690 shares trading hands.
