PORTSMOUTH SQUARE, INC. (OTCMKTS:PRSI) Files An 8-K Changes in Registrant’s Certifying Accountant

PORTSMOUTH SQUARE, INC. (OTCMKTS:PRSI) Files An 8-K Changes in Registrant’s Certifying Accountant
ITEM 4.01 CHANGES IN REGISTRANT’S CERTIFYING ACCOUNTANT.

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Effective November 16, 2017, Hein & Associates LLP (“Hein”), the independent registered public accounting firm for Portsmouth Square Inc. (the “Company”), combined with Moss Adams LLP (“Moss Adams”). As a result of this transaction, on November 16, 2017, Hein resigned as the independent registered public accounting firm for the Company. Concurrent with such resignation, the Company’s audit committee approved the engagement of Moss Adams as the new independent registered public accounting firm for the Company.

The audit reports of Hein on the Company’s financial statements for the year ended June 30, 2017 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.

During the fiscal year ended June 30, 2017 and through the subsequent interim period preceding Hein’s resignation, there were no disagreements between the Company and Hein on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of Hein would have caused them to make reference thereto in their reports on the Company’s financial statements for such years.

As previously disclosed in Item 9A of the Company’s Form 10-K filed on October 13, 2017 for the fiscal year ended June 30, 2017, we identified one material weakness in internal controls over financial reporting related to our deferred income taxes and income tax expense during the fourth quarter of fiscal 2017. The Company has taken steps to remediate the material weakness and improved its internal control over financial reporting during the first quarter of fiscal 2018. No other “reportable events” as such term is defined in Item 304(a)(1)(v) of Regulation S-K have occurred during the prior fiscal year.

During the fiscal year ended June 30, 2017 and through the subsequent interim period preceding Moss Adam’s engagement, the Company did not consult with Moss Adams on either (1) the application of accounting principles to a specified transaction, either completed or proposed; or the type of audit opinion that may be rendered on the Company’s financial statements, and Moss Adams did not provide either a written report or oral advise to the Company that Moss Adams concluded was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue; or (2) any matter that was either the subject of a disagreement, as defined in Item 304(a)(1)(iv) of Regulation S-K, or a reportable event, as defined in Item 304(a)(1)(v) of Regulation S-K.

The Company has provided Hein a copy of the disclosures in this Form 8-K and has requested that Hein furnish it with a letter addressed to the Securities and Exchange Commission stating whether or not it agrees with the Company’s statements herein. A copy of the letter dated November 16, 2017 is filed as Exhibit 16.1 to this Form 8-K.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
16.1 Letter from Hein & Associates LLP on change in certifying accountant.


PORTSMOUTH SQUARE INC Exhibit
EX-16.1 2 tv479908_ex16-1.htm EXHIBIT 16.1   Exhibit 16.1           November 20,…
To view the full exhibit click here

About PORTSMOUTH SQUARE, INC. (OTCMKTS:PRSI)

Portsmouth Square, Inc. operates in San Francisco hotel industry. The Company’s principal business is conducted through its general and limited partnership interest in Justice Investors Limited Partnership (Justice). It operates through two segments: Hotel Operations, which is engaged in the operation of the Hilton San Francisco Financial District (the Hotel), and Investment Transactions, which includes the investment of its cash in marketable securities and other investments. As of June 30, 2016, Justice, through its subsidiaries, Justice Holdings Company, LLC, Justice Operating Company, LLC and Justice Mezzanine Company, LLC, owns the Hotel, which consists of a 543-room hotel property located at 750 Kearny Street, San Francisco, California, and related facilities, including a five level underground parking garage. It also invests in income producing instruments, corporate debt and equity securities, publically traded investment funds, mortgage backed securities and other companies.

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