WECAST NETWORK, INC. (NASDAQ:WCST) Files An 8-K Changes in Registrant’s Certifying Accountant
Item 4.01Changes in Registrant’s Certifying Accountant.
(a) KPMG Huazhen LLP (KPMG) was previously the principal
accountants for Wecast Network, Inc., formerly known as You On
Demand Holdings, Inc.(the Company). On April 27, 2017, that firm
was dismissed. The dismissal of KPMG was approved by the Audit
Committee (the Audit Committee) of the board of directors of the
Company.
During the two fiscal years ended December 31, 2016, and in the
subsequent interim period through April 27, 2017, there were no:
(1) disagreementswithKPMG on any matter of accounting principles
or practices, financial statement disclosure or auditing scope or
procedures, which disagreements if not resolved to their
satisfaction would have causedthem to make reference in
connection with their opinion to the subject matter of the
disagreement, or (2) reportable events, except that KPMG advised
the Company of a material weakness in the Companys internal
control of financial reporting related to the design,
documentation and implementation of effective internal controls
over the review of the cash flow forecasts used in assessing the
recoverability of licensed content.
The audit reports ofKPMG on the consolidated financial statements
of the Company and subsidiaries and variable interest entities as
of and for the years ended December 31, 2016 and 2015 did not
contain an adverse opinion or a disclaimer of opinion, nor were
they qualified or modified as to uncertainty, audit scope or
accounting principles, except as follows:
KPMGs report of the consolidated financial statements as of and
for the years ended December 31, 2016 and 2015, contained a
separate paragraph stating the Company incurred recurring losses
from operations, has net current liabilities and an accumulated
deficit that raise substantial doubt about its ability to
continue as a going concern. Managements plans in regard to these
matters are also described in note 3. The consolidated financial
statements do not include any adjustments that might result from
the outcome of this uncertainty.
A letter from KPMG is attached as Exhibit 16.1 to this Form 8-K.
(b) On April 27, 2017, the Company appointedGrant Thornton, China
member firm of Grant Thornton International (GT) as its new
independent registered public accounting firm to audit the
Companys financial statements for the year ending December 31,
2017. The decision to retainGT was approved by the Audit
Committee.
During the Company’s fiscal years endedDecember 31, 2016 and
2015 and the subsequent interim period through April 27, 2017,
neither the Company nor anyone on its behalf has consulted withGT
regarding (i)the application of accounting principles to a
specific transaction, either completed or proposed or (ii)the
type of audit opinion that might be rendered on the Company’s
financial statements and,neither a written report nor oral
advicewas providedto the Company that GTconcluded was an
important factor considered by the Company in reaching a decision
as to accounting, auditing or financial reporting issues, or
(iii)any matter that was the subject of a disagreement(as defined
inItem304(a)(1)(iv) of Regulation S-K and the related
instructions), or (iv)any reportable event(as described
inItem304(a)(1)(v) of Regulation S-K).
Item 9.01 Financial Statements and Exhibits.
| (d) | Exhibits |
| ExhibitNo. | Description | |
| 16.1 |
Letter to Securities and Exchange Commission fromKPMG Huazhen LLP, dated May 3, 2017. |
About WECAST NETWORK, INC. (NASDAQ:WCST)
Wecast Network, Inc., formerly YOU On Demand Holdings, Inc., is a content video on demand (VOD) service provider with operations in the People’s Republic of China. The Company, through its subsidiaries and variable interest entity, provides content and integrated value-added service solutions for the delivery of VOD and paid video programming to digital cable providers, Internet Protocol Television (IPTV) providers, over-the-top (OTT) streaming providers, mobile manufacturers and operators, as well as direct customers. The Company operates through video content and media segment. The Company is a multi-platform entertainment company delivering content, including Hollywood and China-produced movie titles, as well as children’s programming, to customers’ mobile and television screens across China through subscription video on demand (SVOD) and transactional video on demand (TVOD) services. WECAST NETWORK, INC. (NASDAQ:WCST) Recent Trading Information
WECAST NETWORK, INC. (NASDAQ:WCST) closed its last trading session 00.00 at 2.85 with 133,452 shares trading hands.