SURNA INC. (OTCMKTS:SRNA) Files An 8-K Changes in Registrant’s Certifying AccountantItem 4.01 Changes in Registrant’s Certifying Accountant.
A. Dismissal of Independent Registered Public Accounting Firm.
On November 28, 2017, the Audit Committee (the “Audit Committee”) of the Board of Directors of Surna Inc. (the “Company”) dismissed RBSM LLC (“RBSM”) as the Company’s independent registered public accounting firm.
RBSM’s audit reports on the Company’s consolidated financial statements as of and for the fiscal years ended December 31, 2015 and 2016 did not contain an adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles, except that each such report included an explanatory paragraph raising substantial doubt about the Company’s ability to continue as a going concern and stated that the Company’s consolidated financial statements for the fiscal years ended December 31, 2015 and December 31, 2016, respectively, were prepared assuming that the Company would continue as a going concern.
During the Company’s two most recent fiscal years and the subsequent interim period from January 1, 2017 through November 28, 2017, (i) there were no “disagreements” (as that term is defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) between the Company and RBSM on any matters of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of RBSM, would have caused RBSM to make reference to the subject matter of the disagreement in its report on the Company’s financial statements, and (ii) there were no “reportable events” (as that term is defined in Item 304(a)(1)(v) of Regulation S-K), except for the material weaknesses in internal controls as described in Item 9A of Form 10-K for the fiscal years ended December 31, 2015 and 2016, as follows:
These material weaknesses have not been remediated as of the date of this Current Report on Form 8-K.
The Company has provided RBSM with a copy of the foregoing statements in this Current Report on Form 8-K and has requested and received from RBSM a copy of the letter addressed to the Securities and Exchange Commission stating that RBSM agrees with the above statements. A copy of the letter from RBSM is attached as Exhibit 16.1 to this Current Report on Form 8-K.
B. Appointment of New Independent Registered Public Accounting Firm.
On November 28, 2017, the Audit Committee approved the appointment of Anton Collins Mitchell LLP (“ACM”) as the Company’s new independent registered public accounting firm to perform independent audit services commencing for the fiscal year ending December 31, 2017.
During the Company’s two most recent fiscal years and the subsequent interim period from January 1, 2017 through November 28, 2017, neither the Company, nor anyone acting on behalf of the Company, consulted ACM regarding either (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 Company’s consolidated financial statements, and neither a written report nor oral advice was provided to the Company that ACM 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” or a “reportable event.”
Item 9.01 Financial Statements and Exhibits.
(a) Not applicable.
Surna Inc. ExhibitEX-16.1 2 ex16-1.htm Exhibit 16.1 101 Larkspur Landing Circle Suite 321 Larkspur,…To view the full exhibit click here
About SURNA INC. (OTCMKTS:SRNA)
Surna Inc. develops, designs and distributes cultivation technologies for controlled environment agriculture (CEA). The Company’s segment is designing, manufacturing, and distributing indoor climate control systems, including but not limited to chillers, lights, reflectors, and irrigation systems, for use in conjunction with the state-regulated cannabis and CEA industry. The Company’s technologies include a line of optimized lighting, environmental control, air sanitation and cultivation facilities. The Company offers full mechanical, electrical, and plumbing (MEP) services, including designing and engineering commercial scale thermodynamic systems specific to indoor grow facility conditions. The Company’s products include Surna Chillers, Surna Reflectors, Hybrid Building and Air Sanitation. Its customers include state-regulated cannabis cultivation facilities, as well as traditional indoor agricultural facilities, including organic herb and vegetable producers.