Item 4.01 Change in Registrant's Certifying Accountant.
(b) On November 14, 2022, the Audit Committee of the Board of Directors of
Standard Premium Finance Holdings, Inc. (the "Company") engaged Assurance
Dimensions, Inc. to serve as the Company's independent registered public
accounting firm to audit the restated consolidated statement of cash flows for
the year ended December 31, 2021 of the Company to be included in an amended
Form 10-K for the year ended December 31, 2021 which will be filed with the
Securities and Exchange Commission. See Item 4.02 for further information
regarding such restatement.
During the two most recent fiscal years ended December 31, 2021 and 2020 and
through the date the Company selected Assurance Dimensions, Inc. as its
independent registered public accounting firm, neither the Company nor anyone on
behalf of the Company consulted Assurance Dimensions, Inc. regarding any
accounting or auditing issues involving the Company, including (i) the
application of accounting principles to a specified transaction, either
completed or proposed, or the type of audit opinion that might be rendered on
the Company's financial statements, or (ii) any matter that was the subject of a
"disagreement" (as defined in Item 304(a)(1)(iv) of Regulation S-K of the
Securities Exchange Act of 1934, as amended, and the related instructions to
Item 304 of Regulation S-K) or a "reportable event" (as defined in Item
304(a)(1)(v) of Regulation S-K).
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related
Audit Report or Completed Interim Review.
(a) On November 14, 2022, the Audit Committee of the Board of Directors of
Standard Premium Finance Holdings, Inc. (the "Company"), after consultation with
management and discussions with its reviewing independent registered public
accounting firm for its Form 10-Q for the fiscal quarter ended September 30,
2022, concluded that the Company's previously issued financial statements for
the year ended December 31, 2021 (the "Relevant Period") should be restated and
should no longer be relied upon.
In connection with preparing its financial statements for the quarter ended
September 30, 2022, the Company determined that it incorrectly classified its
Increase/Decrease in Premium Finance Contracts Receivable as operating
activities in the Consolidated Statements of Cash Flows. Beginning in the third
quarter of 2022, the Company adjusted its consolidated statements of cash flows
to present Increase/Decrease in Premium Finance Contracts Receivable as
investing activities.
Although these changes are non-cash items and do not change the Company's
reported operating revenues, operating costs and expenses, income or earnings
per share, the Company determined that these changes have a material impact on
the as filed financial statements for the Relevant Period, and as a result, the
restatement of the Relevant Period is required.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
104 Cover Page Interactive Data File (formatted as Inline XBRL and
contained in Exhibit 101)
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