ITEM 4.01. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
(a) Previous Independent Registered Public Accounting Firm
On August 3, 2016, the Board of Directors (the "Board") of NaturalNano, Inc. (the "Company") notified Freed Maxick CPAs, P.C ("Freed Maxick") that it had determined to dismiss them as the Company's independent registered public accounting firm, effective as of August 3, 2016. Also on August 3, 2016, the Board determined to engage Scrudato & Co., PA ("Scrudato") as its new independent registered public accounting firm to replace Freed Maxick.
Freed Maxick reports on the Company's financial statements as of and for the two years ended December 31, 2015 and 2014, did not contain an adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles, except that Freed Maxick reports contained an explanatory paragraph regarding substantial doubt about the Company's ability to continue as a going concern.
The decision to dismiss Freed Maxick and to engage Scrudato as the Company's new auditor (as discussed below) was approved by the Board.
During the years ended December 31, 2015 and 2014, and in the subsequent interim period through August 3, 2016 (the date of dismissal of Freed Maxick), there were no disagreements between the Company and Freed Maxick on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Freed Maxick, would have caused it to make reference to the subject matter of the disagreement in connection with its reports on the Company's financial statements for such years.
The Company provided Freed Maxick with a copy of this Current Report on Form 8-K prior to its filing with the Securities and Exchange Commission ("SEC"), and requested Freed Maxick furnish the Company with a letter addressed to the SEC stating whether it agrees with the statements made by the Company above, and if not, stating the respects in which it does not agree. A copy of Freed Maxick letter, dated August 5, 2016, is attached hereto as Exhibit 16.1.
(b) New Independent Registered Public Accounting Firm
On August 3, 2016, the Board determined to engage Scrudato as its new independent registered public accounting firm responsible for auditing its financial statements. During the Company's years ended December 31, 2015 and 2014, and in the subsequent interim period through August 3, 2016, neither the Company, nor anyone on its behalf, consulted with Scrudato with respect to either: (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's consolidated financial statements, and neither a written report nor oral advice was provided to the Company by Scrudato that was an important factor considered by the Company in reaching a decision as to the accounting, auditing, or financial reporting issue; or (ii) any matter that was the subject of either a disagreement as defined in Item 304(a)(1)(iv) of Regulation S-K or a reportable event as described in Item 304(a)(1)(v) of Regulation S-K.