Universe Pharmaceuticals INC (NASDAQ:UPC) has announced a change in its independent registered public accounting firm. Effective Monday, the company appointed Enrome LLP as its new auditor, replacing YCM CPA INC. The decision, approved by the audit committee of the board of directors, was not due to any disagreements on accounting practices or financial disclosures.
The previous auditor, YCM, had provided reports for the fiscal years ending September 30, 2022, and 2023, without any adverse opinions or modifications. Universe Pharmaceuticals confirmed that there had been no disagreements or "reportable events" with YCM that would have impacted their financial reporting for those periods, except for material weaknesses identified in the 2023 fiscal year report.
The company has complied with the regulatory process by providing YCM with the disclosure statements and has included YCM’s response letter to the SEC in its recent Form 6-K filing. Universe Pharmaceuticals has not sought advice from Enrome on any accounting principles or reported events prior to their appointment.
This corporate update is based on the company's latest filing with the U.S. Securities and Exchange Commission.
In other recent news, Universe Pharmaceuticals INC has made public the details for its 2024 Annual General Meeting of Shareholders. This development is part of the company's commitment to transparency and adherence to necessary legal and regulatory frameworks. The notice and proxy statement for the meeting were distributed to shareholders in preparation for the event. The company, headquartered at 265 Jingjiu Avenue, Jinggangshan Economic and Technological Development Zone, Ji'an, Jiangxi, China, is actively engaged in the development and distribution of various pharmaceutical products.
InvestingPro Insights
In light of Universe Pharmaceuticals' recent auditor change, InvestingPro data provides additional context for investors. The company's market capitalization stands at a modest $5.77 million, reflecting its small-cap status. This valuation comes amid challenging financial performance, with revenue declining by 22.33% over the last twelve months as of Q2 2024, to $26.73 million.
InvestingPro Tips highlight that UPC is trading at a low Price / Book multiple of 0.19, which could indicate potential undervaluation. However, this should be considered alongside the fact that the company is not profitable over the last twelve months, with an operating income margin of -20.27%.
The change in auditors comes at a time when UPC's stock has experienced significant volatility. InvestingPro Tips note that the stock price has fallen dramatically over various timeframes, including a 92.97% decline in the past month alone. This volatility and the material weaknesses identified in the 2023 fiscal year report underscore the importance of the new auditor's role in ensuring accurate financial reporting.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for UPC, providing a deeper understanding of the company's financial health and market position.
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