8-K/A: Endexx Corporation Changes Auditors, Appoints Victor Mokuolu, CPA PLLC

Endexx Corporation has dismissed its independent auditor, Turner, Stone & Company, L.L.P., and engaged Victor Mokuolu, CPA PLLC as its new auditor, effective for the fiscal year ending September 30, 2023.

Summary

• Endexx Corporation dismissed its independent auditor, Turner, Stone & Company, L.L.P. (T&S), on February 9, 2024.
• The dismissal was approved by the company's Board of Directors on the same day.
• T&S's reports on the financial statements for the fiscal years ended September 30, 2022, and September 30, 2021, contained an expression of substantial doubt about the company's ability to continue as a going concern.
• There were no disagreements with T&S on accounting principles, financial statement disclosure, or auditing scope.
• Victor Mokuolu, CPA PLLC (VMCPA) was engaged as the new independent auditor on February 22, 2023, commencing with the fiscal year ended September 30, 2023.
• The company did not consult with VMCPA on accounting principles or audit opinions prior to their engagement.

Sentiment

Score: 3

Explanation: The change in auditors, coupled with the previous auditor's going concern statement, suggests potential financial instability and raises concerns about the company's future prospects.

Negatives

• The previous auditor's reports for fiscal years 2022 and 2021 expressed substantial doubt about the company's ability to continue as a going concern.

Risks

• The change in auditors could raise concerns among investors about the company's financial health.
• The previous auditor's going concern statement indicates potential financial instability.

Management Comments

• The company's Board of Directors approved the dismissal of Turner, Stone & Company, L.L.P. on February 9, 2024.

Industry Context

Changes in auditors are not uncommon, but they can sometimes signal underlying issues within a company. The fact that the previous auditor had expressed doubt about the company's ability to continue as a going concern is a significant factor.

Comparison to Industry Standards

• The change of auditors is not unusual, however, the going concern statement from the previous auditor is a significant concern.
• Companies in similar situations often face increased scrutiny from investors and regulators.
• The appointment of a new auditor is a standard procedure, but the circumstances surrounding this change are not typical due to the going concern issue.

Stakeholder Impact

• Shareholders may be concerned about the company's financial stability due to the going concern statement and change in auditors.
• Creditors may reassess their risk exposure to the company.

Next Steps

• The company will file a copy of the letter from Turner, Stone & Company, L.L.P. as an exhibit to an amendment to this Current Report on Form 8-K.

Key Dates

Keywords

auditor, accounting, financial statements, Turner, Stone & Company, Victor Mokuolu, CPA PLLC, going concern, Endexx Corporation