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ATIF Holdings Limited (NASDAQ:ZBAI), a micro-cap management consulting services company with a market capitalization of $18.36 million, announced on Wednesday the change of its independent registered public accounting firm. According to InvestingPro analysis, the company currently shows a weak financial health score, making this corporate governance development particularly noteworthy. The Board of Directors’ Audit Committee decided to dismiss ZH CPA, LLC, effective immediately, and appointed Li CPA LLC as the new auditor.
The previous auditor’s reports for the fiscal years ending July 31, 2024, and 2023, included an emphasis on a going concern matter but did not contain any adverse opinions or disclaimers. Despite current challenges, InvestingPro data shows the company maintains strong liquidity with a current ratio of 9.26 and holds more cash than debt on its balance sheet. Moreover, there were no disagreements on accounting principles or practices, financial statement disclosure, or auditing scope that would have required ZH to report to the Securities and Exchange Commission (SEC).
ATIF Holdings has confirmed that ZH CPA agrees with the statements made in the dismissal announcement. A letter from ZH CPA to the SEC has been included as part of the filing, ensuring full transparency regarding the auditor change.
The appointment of Li CPA LLC comes into effect as the company prepares to audit the consolidated financial statements for the fiscal year ending July 31, 2025. Prior to their appointment, ATIF Holdings had not consulted with Li CPA on any matters that could lead to disagreements or reportable events as described by SEC regulations.
This strategic move by ATIF Holdings is part of the company’s ongoing efforts to maintain robust financial practices and reporting. The information disclosed in this article is based on the latest 8-K filing with the SEC. Investors should note that ATIF Holdings is scheduled to release its next earnings report on March 17, 2025. For comprehensive financial analysis and additional insights, including 11 more exclusive ProTips, visit InvestingPro.
In other recent news, ATIF Holdings Limited announced notable changes to its leadership team and confirmed that it has regained compliance with Nasdaq’s minimum bid price requirement. The company reported the resignations of Jun Liu, the Chief Executive Officer, and Kwong Sang Liu, an independent director. Dr. Kamran Khan has been appointed as the new CEO, while Zhelun Zhou joins as an independent director. This reshuffle follows a period during which ATIF Holdings faced a potential delisting from Nasdaq due to non-compliance with the minimum bid price of $1 per share. However, the company successfully addressed this issue ahead of the deadline, receiving confirmation of compliance from Nasdaq on January 15. The leadership changes and compliance update were documented in an 8-K filing with the Securities and Exchange Commission. These developments are based on recent filings and announcements from the company.
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