Item 4.01 Changes in Registrant's Certifying Accountant.
On March 24, 2020, ARC Group, Inc. (the "Company") dismissed Eide Bailly, LLC
("Eide Bailly") as the Company's independent registered public accounting firm.
The decision was approved by the Company's board of directors, which serves as
the Company's audit committee.
The report of Eide Bailly on the Company's financial statements for the fiscal
year ended December 31, 2018 did not contain an adverse opinion or a disclaimer
of opinion and were not qualified or modified as to uncertainty, audit scope or
accounting principles. The Company has not yet completed its financial
statements for the fiscal year ended December 31, 2019.
During the fiscal year ended December 31, 2018 and 2019, and the subsequent
interim period preceding the dismissal of Eide Bailly on March 24, 2020, there
were no disagreements with Eide Bailly on any matters of accounting principles
or practices, financial statement disclosure, or auditing scope or procedures,
which, if not resolved to Eide Bailly's satisfaction, would have caused Eide
Bailly to make reference to the matter in its report, and there were no
"reportable events" as that term is described in Item 304(a)(1)(v) of Regulation
S-K.
The Company provided a copy of this disclosure to Eide Bailly and requested that
Eide Bailly furnish a letter addressed to the SEC stating whether it agrees with
the above statements or, if not, stating the respects in which it does not
agree. The Company received the requested letter from Eide Bailly, a copy of
which is filed as Exhibit 16.1 to this Current Report on Form 8-K.
On March 24, 2020, the Company's board of directors approved the engagement of
M&K CPAS, PLLC ("M&K") as the Company's new independent registered public
accounting firm for the Company's fiscal year ending December 31, 2019.
During the fiscal years ended December 31, 2018 and 2019, and the subsequent
interim period commencing on January 1, 2020 and ending on the date of M&K's
engagement, neither the Company nor anyone acting on its behalf consulted with
M&K regarding: (i) the application of accounting principles to a specific
transaction, either completed or proposed, or the type of audit opinion that
might be rendered with respect to the Company's financial statements, and
neither a written report or oral advice was provided to the Company that M&K
concluded was an important factor considered by the Company in reaching a
decision as to any accounting, auditing, or financial reporting issue, or (ii)
any matter that was the subject of a disagreement within the meaning of Item
304(a)(1)(iv) of Regulation S-K, or a "reportable event" within the meaning of
Item 304(a)(1)(v) of Regulation S-K.
© Edgar Online, source Glimpses
ARC GROUP, INC. 
