Item 4.01 Changes in Registrant’s Certifying Accountant
On April 29, 2013, the Board of Directors of the Company terminated its independent registered public accounting firm, StarkSchenkein, LLP, (“StarkSchenkein”).
StarkSchenkein did not issue any audit reports on the Company’s financial statements.
During the Company’s most recent fiscal year and any subsequent interim period preceding the termination of StarkSchenkein, there were no reportable events or disagreements with StarkSchenkein on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreement(s), if not resolved to the satisfaction of StarkSchenkein, would have caused the Company to make reference to the subject matter of the disagreement(s) in connection with this report, except as noted in the subsequent paragraph.
StarkSchenkein has advised the Company that it did not agree with the Company’s prior accounting treatment for convertible notes with derivative instrument, beneficial conversions and other features. The Company authorized StarkSchenkein to respond fully to inquiries of the Company’s successor accountant concerning this subject matter.
The Company has provided a copy of this disclosure to StarkSchenkein, and requested that StarkSchenkein furnish the Company with a letter, within the time periods prescribed by Item 304 (a)(3) of Regulation S-K of Securities and Exchange Act of 1934, addressed to the Securities and Exchange Commission stating whether StarkSchenkein agrees with the statements made by the Company and, if not, stating the respects in which StarkSchenkein does not agree.
A copy of StarkSchenkein’s response to this Report on Form 8-K is attached hereto as Exhibit 16.