8-K: Alset Inc. Appoints HTL International as New Independent Auditor Following Grassi & Co. Dismissal

Alset Inc. has announced the dismissal of Grassi & Co., CPAs, P.C. and the engagement of HTL International, LLC as its new independent registered public accounting firm, effective July 2, 2025, with no reported disagreements or reportable events with the former auditor.

Summary

• Alset Inc.'s Board of Directors, upon recommendation from the Audit Committee, dismissed Grassi & Co., CPAs, P.C. as its independent registered public accounting firm on July 2, 2025.
• Grassi's audit reports for Alset Inc.'s financial statements for the years ended December 31, 2024 and 2023 did not contain any adverse opinions, disclaimers, qualifications, or modifications regarding uncertainty, audit scope, or accounting principles.
• During the year ended December 31, 2024, and the subsequent interim period leading up to the dismissal date, there were no disagreements with Grassi on accounting principles, financial statement disclosure, or auditing scope/procedure.
• No reportable events, as defined in Item 304(a)(1)(v) of Regulation S-K, occurred with Grassi during the specified periods.
• Alset Inc. engaged HTL International, LLC as its new independent registered public accounting firm on July 2, 2025, for the fiscal year ending December 31, 2025.
• The decision to engage HTL was recommended by the Audit Committee and approved by the Board of Directors.
• Alset Inc. had not consulted with HTL regarding the application of accounting principles or potential audit opinions during the two most recent fiscal years or through the engagement date.
• HTL International, LLC was not involved in any disagreements or reportable events with Alset Inc. prior to their engagement.

Sentiment

Score: 7

Explanation: The sentiment is positive because the change in auditor occurred without any reported disagreements or reportable events, and the previous audit reports were clean. This indicates a smooth transition without underlying financial or accounting issues.

Positives

• The dismissal of Grassi & Co. occurred without any disagreements on accounting principles, financial statement disclosure, or auditing scope or procedure.
• Grassi's audit reports for 2024 and 2023 financial statements were clean, containing no adverse opinions, disclaimers, qualifications, or modifications.
• No reportable events were identified with the former auditor, Grassi & Co., indicating a smooth transition without underlying issues.

Future Outlook

HTL International, LLC has been engaged as the independent registered public accounting firm for Alset Inc.'s fiscal year ending December 31, 2025.

Management Comments

• The Board of Directors dismissed Grassi & Co., CPAs, P.C. at the recommendation of the Audit Committee.
• The decision to engage HTL International, LLC was recommended by the Company's Audit Committee and approved by the Company's Board of Directors.

Industry Context

Changes in independent registered public accounting firms are a routine occurrence for publicly traded companies. The absence of reported disagreements or reportable events with the outgoing auditor, as explicitly stated by Alset Inc. and confirmed by Grassi & Co., suggests a standard transition rather than one prompted by significant accounting or auditing disputes, which is generally viewed favorably within the industry.

Corporate Governance

Stakeholder Impact

• Shareholders: The change in auditor without reported disagreements or issues provides assurance regarding the continuity of sound financial reporting practices and audit quality.

Next Steps

• HTL International, LLC will serve as the independent registered public accounting firm for Alset Inc.'s fiscal year ending December 31, 2025.

Key Dates

Keywords

Auditor Change, SEC Filing, 8-K, Alset Inc., AEI, Independent Registered Public Accounting Firm, Grassi & Co., HTL International, Audit Committee, Corporate Governance