IT Tech Packaging Changes Auditor After $1.05M Loan Disagreement

What Happened
IT Tech Packaging, Inc. (ITP) filed an 8-K reporting that Montis CPA Limited resigned as the company’s independent registered public accounting firm effective August 27, 2026, following a disagreement over the accounting treatment and disclosure of a US$1,050,000 payment involving the CEO. Montis had been engaged on April 22, 2026 and did not issue any audit reports for the period between engagement and resignation. The company told the Audit Committee the US$1,050,000 was a payment for equipment purchase. On August 29, 2026 the company engaged HCL, PLLC as the new independent registered public accounting firm. Montis’s letter to the SEC dated September 1, 2026 is filed as Exhibit 16.1.

Key Details

• Resignation date: Montis resigned effective August 27, 2026 (engaged April 22, 2026).
• Dispute amount: US$1,050,000 disagreement over accounting, disclosure, and nature of payment to the CEO.
• Audit committee view: On August 18, 2026 the Audit Committee stated the payment was for purchase of equipment.
• Successor auditor: HCL, PLLC was engaged and approved by the Audit Committee on August 29, 2026; HCL had no prior consultations with the company on accounting matters.

Why It Matters
A change in independent auditor, especially tied to a disagreement over treatment of a sizeable payment to the CEO, is material for investors because it touches on financial reporting, related-party transactions, and corporate governance. The filing indicates Montis issued no audit reports in the engagement period and reported no other disagreements or reportable events, but investors should watch upcoming filings (audits, notes to financials or related-party disclosures) for how the company records and discloses the US$1,050,000 transaction and for any effects on timing of audited financial statements.