Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related
Audit Report or Completed Interim Review
On March 25, 2022, Leet Technology, Inc. ("Leet" or the "Company") after
discussion with Friedman, LLP ("Friedman"), the Company's current independent
registered public accounting firm, J&S Associates, the Company's predecessor
independent registered public accounting firm, the Audit Committee of the
Company's Board of Directors (the "Audit Committee") and the Company's
management concluded that it is appropriate to correct the Company's previously
issued unaudited condensed consolidated financial statements for the three-month
and six-month periods ended June 30, 2021 and September 30, 2021 (collectively
the "Relevant Periods") by restating such unaudited condensed consolidated
financial information in an amended Quarterly Report on Form 10-Q for each of
the Relevant Periods because the errors were material to the financial
information for each of the Relevant Periods due to overstatement of revenue
recognized pursuant to certain contracts entered into by the Company.
Considering such restatements, the unaudited condensed consolidated financial
statements for each of the Relevant Periods should no longer be relied upon.
For the periods ended June 30, 2021 and September 30 , 2021 revenue was
overstated $100,000 and $60,000 respectively. Based on our conclusion, this has
a material impact on Company's financial statements for the relevant periods
both quantitatively and qualitatively. In connection with the restatement,
management has determined that material weakness occurred due to our
misapplication of ASC 606.
The Company's plan to remediate this material weakness will be described in its
Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The
Company has recorded an audit adjustment as of December 31, 2021 to reverse the
revenue and related receivable recorded in error.
The Company's Audit Committee has discussed the matters disclosed in this Item
4.02 with its independent registered public accounting firm Friedman LLP.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Any statements about the
Company's expectations, beliefs, plans, predictions, forecasts, objectives,
assumptions, or future events or performance are not historical facts and may be
forward-looking. These statements are often, but not always, made through the
use of words and phrases such as "may," "could," "should," "looking forward,"
"will," "would," "believes," "expects," "hope," "anticipates," "estimate,"
"intends," "plans," "assume," "goal," "seek," "can", "predicts," "potential,"
"projects," "continuing," "ongoing," and similar expressions. Although the
Company believes that the expectations reflected in these forward-looking
statements are reasonable as of the date on which the statements are made, these
statements are not guarantees of future performance and involve risks and
uncertainties which are subject to change based on various important factors and
assumptions, some of which are beyond the Company's control. Among the factors
that could cause the Company's financial performance to differ materially from
that suggested by forward-looking statements include, without limitation, the
risks and uncertainties described in the Company's filings with the Securities
and Exchange Commission. If one or more of the factors affecting the Company's
forward-looking information and statements renders forward-looking information
or statements incorrect, the Company's actual results, performance or
achievements could differ materially from those expressed in, or implied by, the
forward-looking information and statements. Therefore, the Company cautions the
reader not to place undue reliance on any forward-looking information or
statements herein. The effect of these factors is difficult to predict. Factors
other than these also could adversely affect the Company's results, and the
reader should not consider these factors to be a complete set of all potential
risks or uncertainties as new factors emerge from time to time. Management
cannot assess the impact of any such factor on the Company's business or the
extent to which any factor, or combination of factors, may cause results to
differ materially from those contained in any forward-looking statement. Any
forward-looking statements reflect the current beliefs and expectations of the
Company's management and only speak as of the date of this document, and the
Company
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