XML 26 R16.htm IDEA: XBRL DOCUMENT v3.24.3
Subsequent Events
3 Months Ended
Mar. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events

Note 10 - Subsequent Events

 

As of June 30, 2024, our wholly owned subsidiary, Yunhong Technology Industry (Hubei) Co,. Ltd., acquired certain assets of Yunhong Environmental Protection Technology Co., Ltd. (the “Seller”), an affiliated entity of certain stockholders of the Company, (the “Asset Purchase Transaction”), in accordance with the terms and conditions of the Asset Purchase Agreement, using 5 million shares of our common stock, which was valued at $6,250,000. The Company engaged a third party to assist with the valuation of the assets acquired and has initially assigned a fair value of $4,050,000 to the assets acquired. The remaining $2,200,000 represents a prepayment to the Seller for the Company’s anticipated operational expenses, which the Seller will pay on the Company’s behalf. The Company has not finalized its business combination accounting for this transaction.

 

On April 1, 2024, the Company made a change with respect to its independent auditing firm, ending the relationship with BF Borgers, CPA PC (BFB) and engaging Wolf and Company, PC. On May 3, 2024, the Company became aware that BFB had agreed to be suspended from appearing or practicing before the SEC. Because of this, the Company may no longer use audit reports or consent from BFB in future filings. Without the 2023 audit report, the Company’s new auditors will need to perform procedures related to 2023 balances in order to be able to perform an effective review of required 2024 filings, including the Form 10-Q for the period ended March 31, 2024. Until this was completed, the Company was not able to issue filings during 2024. The Nasdaq provided the Company until September 27, 2024 to file its delinquent filings including this Form 10-Q for the period ended March 31, 2024. Failure to file within the provided time would result in the delisting of the Company’s shares from Nasdaq, subject to the opportunity to appeal the result to a Hearings Panel. This filing partially addresses this requirement.