8-K: Pacific Sports Exchange Changes Auditors

Pacific Sports Exchange Inc. announced a change in its independent registered public accounting firm from KCCW Accountancy Corp. to Boladale Lawal & Co., effective October 13, 2025.

Summary

• The Board of Directors approved the resignation of KCCW Accountancy Corp. as the independent registered public accounting firm on October 11, 2025.
• KCCW had served as the company's auditor since 2021.
• Boladale Lawal & Co. was engaged as the new independent accountant on October 13, 2025.
• KCCW's reports on the company's financial statements for the fiscal years ended August 31, 2024, and 2023, did not contain an adverse opinion, a disclaimer of opinion, or any qualifications or modifications.
• There were no disagreements with KCCW on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.
• No reportable events occurred from August 31, 2021, through the date of this filing.
• Neither the company nor anyone acting on its behalf consulted with Boladale Lawal & Co. regarding any accounting principles or audit opinions that were subjects of disagreement with KCCW or reportable events.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the routine nature of the auditor change and, more importantly, the explicit confirmation that there were no disagreements or reportable events with the outgoing auditor. This transparency and lack of issues mitigate potential concerns often associated with auditor changes, suggesting sound financial reporting practices.

Positives

• KCCW's audit reports for fiscal years 2024 and 2023 were unqualified, indicating no significant issues with past financial statements.
• There were no disagreements with KCCW on accounting principles, practices, financial statement disclosure, or auditing scope, suggesting a clean audit history.
• No reportable events occurred during KCCW's tenure, further reinforcing the absence of significant accounting or auditing issues.
• The new auditor, Boladale Lawal & Co., was not consulted on any matters that were subjects of disagreement or reportable events with the previous auditor, indicating a smooth transition without pre-existing contentious issues.

Risks

• A change in auditors, while often routine, can sometimes introduce a period of adjustment for the new firm to fully understand the company's operations and financial reporting, potentially leading to unforeseen issues or delays in future reporting.

Future Outlook

The filing does not provide specific forward-looking statements or guidance regarding the company's financial performance or strategic direction, focusing solely on the change in its independent registered public accounting firm.

Management Comments

• Huang Hua Shang, Chief Executive Officer and President, signed the report on behalf of Pacific Sports Exchange Inc.

Industry Context

Changes in independent registered public accounting firms are a common occurrence in the corporate landscape, often driven by factors such as fee negotiations, service scope, or auditor rotation policies. The absence of reported disagreements or reportable events in this transition aligns with best practices for maintaining transparent financial reporting and corporate governance, which is generally viewed positively by the market.

Corporate Governance

Stakeholder Impact

• Shareholders: The smooth transition of auditors without any reported disagreements or reportable events enhances confidence in the integrity and reliability of the company's financial statements, which is crucial for investment decisions.
• Management: Ensures continued compliance with SEC reporting requirements and provides independent validation of financial results.

Next Steps

• Boladale Lawal & Co. will audit the company's financial statements and perform reviews of interim financial statements for future periods.

Key Dates

Keywords

Pacific Sports Exchange, KCCW Accountancy Corp, Boladale Lawal & Co, auditor change, independent accountant, SEC filing, 8-K, corporate governance, financial reporting