Avalon GloboCare Corp. (NASDAQ:ALBT), a company specializing in biological products, has reported a change in its independent registered public accounting firm, according to a recent SEC filing. On July 10, 2024, the company's Audit Committee dismissed Marcum LLP and appointed M&K CPAS, PLLC as its new auditor.
The dismissal of Marcum LLP comes despite the absence of any adverse opinions or disagreements on financial statements for the fiscal years 2023 and 2022. Marcum's reports had expressed substantial doubt about Avalon GloboCare's ability to continue as a going concern, but there were no disagreements with Marcum on matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.
Furthermore, the filing disclosed material weaknesses in the company's internal control over financial reporting, including a lack of segregation of duties due to the company's small size and insufficient controls to monitor continuous compliance with contracts, including debt agreements.
Avalon GloboCare provided Marcum with the disclosure statements before filing with the SEC and requested a letter from Marcum to the Commission, which is attached to the filing as Exhibit 16.1, confirming their agreement with the statements or noting any differences.
The decision to engage M&K as the new auditor was made by the Audit Committee on the same day Marcum was dismissed. Avalon GloboCare had not consulted M&K on any matters described in Item 304(a)(2)(i) and (ii) of Regulation S-K during the two most recent fiscal years or up to the engagement date.
This announcement is based on the company's recent 8-K filing with the SEC and is intended to inform shareholders and the public of these significant changes in Avalon GloboCare's financial oversight.
In other recent news, Avalon GloboCare Corp. received a non-compliance notice from Nasdaq due to a delay in filing its quarterly report. The company is actively working to complete the report and regain compliance.
In a separate development, Avalon GloboCare announced the U.S. launch of its KetoAir™ breathalyzer, a device aimed at ketogenic health management. The FDA-registered device integrates nano-sensor technology and AI algorithms to monitor users' ketosis state and provide personalized recommendations.
On another note, La Rosa Holdings Corp. appointed Lourdes Felix, former CEO of BioCorRx Inc., to its Board of Directors. Felix will also serve as the Chairperson of the Audit Committee and a member of the Compensation and Nominating and Corporate Governance Committees. Her appointment is part of La Rosa's strategic plan to enhance financial strategies and operational processes.
These are the recent developments for both Avalon GloboCare and La Rosa Holdings, highlighting the companies' efforts to navigate regulatory compliance, innovate in health management, and strengthen corporate governance.
InvestingPro Insights
In light of Avalon GloboCare Corp.'s recent auditor change, it's worth noting the financial context in which this decision was made. According to InvestingPro Data, Avalon has a market capitalization of just $5.12 million and has been experiencing significant volatility, with a price that has fallen by over 60% in the past year.
The company's Price to Earnings (P/E) ratio stands at -0.33, reflecting its challenges in achieving profitability, as evidenced by the last twelve months as of Q1 2024. Furthermore, the company's revenue has decreased dramatically, with a decline of over 750% during the same period.
InvestingPro Tips suggest that Avalon's short-term obligations exceed its liquid assets, and the company has not been profitable over the last twelve months. Moreover, the company has not issued dividends, which could be a concern for income-focused investors. On a brighter note, the company has seen a strong return over the last three months, indicating some positive investor sentiment.
For those considering Avalon GloboCare as an investment, it may be beneficial to explore the comprehensive list of InvestingPro Tips available at https://www.investing.com/pro/ALBT. As an added incentive, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are additional tips on InvestingPro that can provide deeper insights into Avalon's financial health and market performance.
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