Ispire Technology Inc. (ISPR): auditor change — Ispire Technology restating FY2023 interim financials; $74M intangible overstatement

Ispire Technology Inc.

MSPC audit concluded unaudited Dec 2022 & Mar 2023 financials cannot be relied on; intangible assets incorrectly recorded at $74M vs nil.
Under GAAP, assets from a control party must be recorded at transferor's book value (nil), not independent valuation.
Restatement reverses intangible assets, related amortization & contributed capital; net loss per share will be lower.
Stockholders' equity at Dec 31, 2022 to fall from $83.2M to ~$9.7M after reversing $73.5M intangible.
Auditor notified company on Sept 12, 2023; restated filings pending.

item 4.02

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

Ispire Technology Inc. reported that prior financial statements should not be relied upon.

Action: non reliance
Auditor: MSPC Certified Public Accountants and Advisors, A Professional Corporation

Exact text from the filing

egistered accounting firm, MSPC Certified Public Accountants and Advisors, A Professional Corporation (“MSPC”), MSPC concluded that the Company’s unaudited financial statements at December 31, 2022 and for the six months then ended and at March 31, 2023 and for the nine months then ended (collectively, the “Unaudited Financial Statements”) should not be relied upon, and MSPC informed the audit committee of their conclusion. The unaudited financial statements should be restated to correct the amount at which intangible assets consisting of intellectual property rights which were transferred to the Company by a control party were recorded in the Unaudited

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Ispire Technology Inc. filing history →

Source: SEC EDGAR

accession 0001213900-23-077092

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