Item 4.01 - Changes in Registrant’s Certifying Accountant
On July 18, 2018, Petrogress, Inc. (the “Company”) was notified by the U.S. Securities and Exchange Commission that the Public Company Accounting Oversight Board had revoked the registration of the Company’s independent registered public accounting firm, David S. Friedkin, CPA (“Friedkin”). As such, the Company’s Board of Directors resolved to dismiss Freidkin as its independent registered public accounting firm on July 19, 2018. Freidkin was initially engaged by the Company on January 18, 2017.
None of Freidkin’s reports on the Company's financial statements since the date of Freidkin’s engagement contained an adverse opinion or disclaimer of opinion, or was qualified or modified as to uncertainty, audit scope or accounting principles. Furthermore, from the period beginning upon Freidkin’s engagement through the date of this report, there were no disagreements with Freidkin on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the satisfaction of Freidkin, would have caused the Company to make reference to the matter in a report on the Company’s financial statements.
During the fiscal years ended December 31, 2016 and 2017, and through the interim period ended on the date of this report, the following “reportable events” (as such term is defined in Item 304 of Regulation S-K) existed.
As disclosed in the Company’s Annual Reports on Form 10-K for the fiscal years ended on December 31, 2016 and 2017, and in the Company’s Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2017, June 30, 2017, September 30, 2017 and March 31, 2018, the Company’s management determined that the Company’s internal controls over financial reporting were not effective as of the end of each such period due to the existence of material weaknesses related to (a) insufficient resources resulting from an inadequate number of personnel with requisite expertise in key functional areas of finance and accounting, (b) a lack of segregation of duties due to an inadequate number of personnel and (c) the lack of an audit committee resulting in lack of independent oversight in the establishment and monitoring of required internal controls and procedures. Such material weaknesses have not been remediated as of the date of this report on Form 8-K.
Other than as disclosed above, there were no reportable events during the fiscal years ended December 31, 2016 and 2017, and through the interim period ended on the date of this report. The Company’s Board of Directors discussed the subject matter of each reportable event with Friedkin.
The Company has provided Friedkin with a copy of this report and requested that it furnish a letter addressed to the Securities and Exchange Commission stating whether it agrees with the above statements and, if not, stating the respects in which it does not agree. A copy of Freidkin’s letter provided in response to the Company’s request dated July 20, 2018, is filed as Exhibit 16.1 to this report.