FREMONT, CA - ABVC BioPharma, Inc., a Nevada-based pharmaceutical company, has announced a change in its independent registered public accounting firm, as per the company's recent 8-K filing with the Securities and Exchange Commission. The company, which is listed on the NASDAQ under the ticker ABVC, reported that WWC, P.C., its previous accounting firm, will not renew its engagement with ABVC BioPharma. This decision was acknowledged by the company's board of directors on Thursday.
WWC's reports on ABVC BioPharma's financial statements for the fiscal years ending December 31, 2022 and December 31, 2023, as well as the interim period ending June 30, 2024, did not contain any adverse opinions or disclaimers. However, they included an explanatory paragraph about the substantial doubt regarding the company's ability to continue as a going concern.
The company stated that there were no disagreements with WWC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure during the fiscal years and subsequent interim period through June 30, 2024. Additionally, there were no reportable events as described under Regulation S-K.
Following the non-renewal by WWC, ABVC BioPharma's board has approved the engagement of Simon & Edward, LLP (S&E) as the new independent registered public accounting firm, effective from Thursday. Prior to this engagement, ABVC BioPharma had not consulted with S&E on any accounting principles or transactions, nor had there been any disagreements or reportable events with them.
The company has requested WWC to provide a letter to the SEC stating whether it agrees with the statements made in the disclosure. As of the filing date, WWC has not yet provided this letter. ABVC BioPharma will file the letter as an exhibit to the SEC upon receipt.
This change in the company's certifying accountant comes as ABVC BioPharma continues its operations in the pharmaceutical preparations industry. The information regarding this transition is based on the statements made in the company's latest SEC filing.
InvestingPro Insights
ABVC BioPharma's recent change in its accounting firm comes amid challenging financial circumstances. According to InvestingPro data, the company's market capitalization stands at a modest $6.55 million, reflecting its small-cap status. The company's financial health appears precarious, with a negative P/E ratio of -0.59 over the last twelve months as of Q2 2024, indicating ongoing profitability challenges.
The company's revenue for the same period was just $0.14 million, with a staggering revenue decline of 82.19% year-over-year. This substantial drop in revenue aligns with the auditor's concerns about ABVC's ability to continue as a going concern. However, it's worth noting that the company saw a significant quarterly revenue growth of 1817.53% in Q2 2024, which could be a positive sign if sustained.
InvestingPro Tips highlight additional concerns:
1. ABVC is not profitable over the last twelve months.
2. The company has been operating with high business risk.
These tips, along with 11 additional insights available on InvestingPro, provide a deeper understanding of ABVC's financial position and operational challenges. The change in accounting firms may be seen as part of the company's efforts to navigate its current financial situation and potentially improve its reporting and financial management practices.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.