ABVC BIOPHARMA, INC. 8-K

What Happened

• On June 30, 2026, ABVC BioPharma's audit committee approved the dismissal of Simon & Edward, LLP (S&E) and engaged Kreit & Chiu CPA LLP (KC) as the company's independent registered public accounting firm for the fiscal year ending December 31, 2026. S&E had served as auditor from October 17, 2024, through June 30, 2026.
• S&E’s audit reports for the years ended December 31, 2024 and 2025 did not include an adverse opinion or disclaimer and were not qualified, except they contained an explanatory paragraph about the Company’s ability to continue as a going concern. The company disclosed previously identified material weaknesses in internal control over financial reporting. ABVC provided S&E with a copy of the disclosures and requested S&E furnish a letter to the SEC; S&E’s letter (dated July 1, 2026) is filed as Exhibit 16.1.

Key Details

• Effective date of auditor change: June 30, 2026.
• Prior auditor tenure: S&E served from Oct 17, 2024 to June 30, 2026.
• Audit opinion history: No adverse or qualified opinions for FY 2024 and 2025, but both reports included a going concern explanatory paragraph.
• No disagreements or other “reportable events” with S&E during the past two fiscal years, aside from the previously disclosed material weaknesses. ABVC did not consult KC about reportable matters before engagement.

Why It Matters

• A change in independent auditor is material because auditors examine financial statements and controls; investors watch such changes for potential impacts on audit quality and financial reporting.
• The filing confirms there were no adverse audit opinions, but continued disclosure of a going concern paragraph and prior material weaknesses in internal controls are important risk signals for investors assessing ABVC’s financial stability and governance.
• The new engagement covers the remainder of fiscal 2026; investors should monitor future filings (e.g., quarterly and annual reports) for any further notes from the new auditor and for remediation of internal control weaknesses.