8-K: LiquidValue Development Inc. Announces Auditor Change, Citing No Disagreements

LiquidValue Development Inc. has dismissed Grassi & Co., CPAs, P.C. and appointed HTL International, LLC as its new independent registered public accounting firm, with no reported disagreements or adverse opinions from the previous auditor.

Summary

• LiquidValue Development Inc. (the "Company") dismissed Grassi & Co., CPAs, P.C. ("Grassi") as its independent registered public accounting firm on July 2, 2025.
• Grassi's audit reports for the fiscal years ended December 31, 2024, and 2023 did not contain an adverse opinion, a disclaimer of opinion, or any qualifications/modifications regarding uncertainty, audit scope, or accounting principles.
• There were no disagreements with Grassi on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure during the year ended December 31, 2024, and the subsequent interim period preceding the dismissal date.
• No reportable events, as defined in Item 304(a)(1)(v) of Regulation S-K, occurred during the aforementioned periods.
• The Company engaged HTL International, LLC ("HTL") as its new independent registered public accounting firm for the fiscal year ending December 31, 2025, effective July 2, 2025.
• The decision to engage HTL was approved by the Company's Board of Directors.
• The Company did not consult with HTL regarding the application of accounting principles or potential audit opinions prior to their engagement.
• Grassi & Co., CPAs, P.C. has confirmed their agreement with the Company's statements regarding their firm in the Form 8-K filing.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While an auditor change can sometimes raise concerns, the explicit statement of no disagreements or reportable events with the previous auditor, and clean past audit reports, mitigates potential negative interpretations, indicating a smooth transition.

Positives

• Grassi & Co., CPAs, P.C. issued clean audit reports for the fiscal years ended December 31, 2024, and 2023, with no adverse opinions, disclaimers, or qualifications.
• The Company reported no disagreements with Grassi on accounting principles, financial statement disclosure, or auditing procedures prior to their dismissal.
• No reportable events were identified with the former auditor, indicating a smooth transition without underlying financial reporting issues.

Future Outlook

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

Management Comments

• The Board of Directors of LiquidValue Development Inc. approved the dismissal of Grassi & Co., CPAs, P.C. and the engagement of HTL International, LLC.

Industry Context

Changes in independent auditors are a routine corporate governance event for publicly traded companies. While sometimes indicative of underlying issues, this filing explicitly states the absence of disagreements or reportable events, suggesting a change driven by other factors, potentially cost, service, or strategic alignment, rather than audit quality concerns. This aligns with standard practices where companies periodically review their audit relationships.

Comparison to Industry Standards

• The Company's disclosure of no disagreements or reportable events with the outgoing auditor, Grassi & Co., CPAs, P.C., aligns with best practices for transparency in auditor changes, mitigating potential investor concerns often associated with such transitions.
• The engagement of HTL International, LLC without prior consultation on specific accounting principles or audit opinions is standard procedure to maintain auditor independence, consistent with regulatory requirements for public companies.

Corporate Governance

Stakeholder Impact

• Shareholders: The change in auditor, without reported disagreements, should maintain confidence in the integrity and reliability of the Company's financial statements.
• Employees: No direct impact on employees is indicated by this filing.

Next Steps

• HTL International, LLC will serve as the independent registered public accounting firm for the Company's fiscal year ending December 31, 2025.
• Grassi & Co., CPAs, P.C. has furnished a letter to the SEC agreeing with the Company's statements regarding their firm in the Form 8-K.

Key Dates

Keywords

auditor change, SEC filing, Form 8-K, independent registered public accounting firm, corporate governance, financial reporting, LiquidValue Development Inc., Grassi & Co., HTL International