8-K: Yubo International Biotech Changes Accounting Firms Following Retirement

Yubo International Biotech has changed its independent registered public accounting firm from Michael T. Studer CPA P.C. to HHL Advisors Group, effective January 2, 2025, due to the retirement of Mr. Studer.

Summary

• Yubo International Biotech dismissed Michael T. Studer CPA P.C. as their independent auditor on December 26, 2024, due to the retirement of Mr. Studer.
• The dismissal was approved by the board of directors and became effective on January 2, 2025.
• Michael T. Studer CPA P.C.'s reports for the years ended December 31, 2023 and 2022 did not contain any adverse opinions or disclaimers, except for an explanatory paragraph about the company's ability to continue as a going concern.
• There were no disagreements with Michael T. Studer CPA P.C. on accounting principles, financial statement disclosure, or auditing scope during the fiscal years ended December 31, 2023 and 2022, and the interim period from January 1, 2024 to December 26, 2024.
• Yubo International Biotech engaged HHL Advisors Group as their new independent auditor on December 26, 2024, effective January 2, 2025.
• The company did not consult with HHL regarding accounting principles or audit opinions prior to their engagement.

Sentiment

Score: 7

Explanation: The document indicates a routine change of auditors due to retirement, with no apparent issues. The going concern note is a slight concern, but not unusual for a company of this type.

Positives

• The transition to a new auditor was smooth with no reported disagreements with the previous auditor.
• The previous auditor's reports did not contain any adverse opinions or disclaimers, except for a going concern note, which is not uncommon for early stage companies.

Negatives

• The change in auditors was due to the retirement of the previous auditor, which may cause some disruption.
• The previous auditor's report included an explanatory paragraph regarding the company's ability to continue as a going concern, which is a potential concern.

Risks

• The company's ability to continue as a going concern is a potential risk factor.
• The transition to a new auditor could introduce some operational risks, although the company has stated there were no disagreements with the previous auditor.

Management Comments

• The dismissal of Michael T. Studer CPA P.C. was approved by the board of directors.
• The engagement of HHL Advisors Group was approved by the board of directors.

Industry Context

Changes in auditors are not uncommon, especially when a partner retires. The fact that there were no disagreements with the previous auditor is a positive sign for the company's financial reporting practices.

Comparison to Industry Standards

• The change of auditors due to retirement is a common occurrence in the industry.
• The lack of disagreements with the previous auditor is consistent with good corporate governance practices.
• The engagement of a new auditor is a standard procedure and the company appears to have followed the correct process.

Stakeholder Impact

• Shareholders should be aware of the change in auditors, but it appears to be a routine matter.
• The company's employees will likely not be significantly impacted by this change.

Key Dates

Keywords

auditor, accounting, financial statements, Michael T. Studer CPA P.C., HHL Advisors Group, going concern, retirement