NITCHES INC: auditor change — Nitches restates FY2023 financials due to errors in non-cash interest and derivatives

NITCHES INC

Board determined FY2023 annual and certain quarterly financial statements are no longer reliable due to material misstatements.
Errors identified in treatment of non-cash interest, changes in derivative liabilities, and valuation of stock issuances.
Restated financials to be filed as amendments to 10-K for FY2023 and affected 10-Qs as soon as practicable.
Newly appointed auditor RBSM LLP will finalize audit of the restated periods.
Investors advised not to rely on the prior financial statements until restatements are completed and filed.

item 4.02 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

NITCHES INC reported that prior financial statements should not be relied upon.

Action: non reliance
Auditor: RBSM LLP

Exact text from the filing

(the “Company”) concluded, after discussion with management and its Independent Registered Public Accounting Firm, RBSM LLP, that the financial statements of the Company for the fiscal year ended August 31, 2023, including, potentially, certain quarterly reports filed for that year (collectively, the “Prior Financial Statements”), may no longer be able to be relied upon. The determination was based on the discovery of certain errors in the treatment of non-cash interest, changes in derivative liabilities and valuation of stock issuances, which management believes may have resulted in material misstatements in those periods. Accordingly, the Company has directed management to restate the Prior Financial Statements to correct the errors described above. The restated financial statements are expected to be filed as an amendment to the Company’s Annual Reports on Form 10-K for the year ended

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Source: SEC EDGAR

accession 0001139020-25-000225

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