Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related
Audit Report or Completed Interim Review.
The Company has filed a lawsuit in the district court of Harris County, Texas
against its former auditors-Carlos Lopez ("Lopez"), LBB & Associates, Ltd., LLP
("LBB"), and Vine Advisors, LLP ("Vine"). In March 2020, the Company learned
that (a) Lopez and LBB were investigated by the SEC through an Order Instituting
Administrative Proceedings; (b) Lopez and LBB agreed to the imposition of
remedial sanctions against them by the SEC; and (c) Lopez had been suspended
from appearing or practicing before the SEC for a period of at least two years
(the "Suspension Order"), beginning on February 6, 2020. The Company was not
aware of the Suspension Order or the SEC investigation into its former auditors
until it was informed by the SEC. The Company was never informed about the SEC
investigation or the contents of the Suspension Order from its former auditors
at any time. As a result, the Company has sued its former auditors for
negligence, fraud, deceptive practices, and conversion. In the lawsuit, Company
seeks damages for injuries caused by its auditors to the Company. The Company
also seeks the return of the Company's work papers.
ITEM 7.01 REGULATION FD DISCLOSURE
On July 23, 2020, we issued a press release announcing the lawsuit the filing of
lawsuit against our previous auditors, LBB & Associates, LTD. A copy of the
press release is filed as Exhibit 99.1 hereto.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
Exhibit No. Exhibit Description
10.1 Court stamped copy of lawsuit with SEC notice of
LBB & Associates, LTD suspension
99.1 Press release, dated July 23, 2020
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