On October 19, 2018, the Audit Committee (the "Committee") of Board of Directors of Spring Pharmaceutical Group, Inc., formerly China YCT International Group, Inc. (the "Company")
accepted the resignation of Paritz & Company, P.A., the Company's prior independent registered public accounting firm, effective immediately, and authorized the Company to
enter into an engagement letter (the "Engagement Letter") with Prager Metis CPAs, LLC, whereby Prager Metis CPAs, LLC was appointed to be the Company's independent registered public accounting firm for the quarterly period ended September 30, 2018.
Prager Metis CPAs, LLC merged with the Company's prior independent registered public accounting firm Paritz & Company, P.A. As a result of the merger, Prager Metis CPAs, LLC, as the surviving entity, succeeded to Paritz & Company, P.A.'s role, duties and rights as the Company's independent registered public accounting firm and entered into the Engagement Letter with the Committee to that effect on October 19, 2018. Accordingly, as of October 17, 2018, Paritz & Company, P.A., now a defunct entity as a result of the merger, no longer serves as the Company's independent registered public accounting firm.
Paritz & Company, P.A.'s report on the Company's consolidated financial statements as of and for the fiscal years ended March 31, 2018 and 2017 did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles.
During the years ended March 31, 2018 and 2017, and through October 19, 2018, there were no disagreements with Paritz & Company, P.A. on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not resolved to the satisfaction of Paritz & Company, P.A. would have caused it to make reference to the subject matter of the disagreements in connection with its report. There were no reportable events (as that term is described in Item 304(a)(1)(v) of Regulation S-K) during the two fiscal years ended March 31, 2018 and 2017, or in the subsequent period through October 19, 2018.
The Company has provided a copy of the foregoing disclosures to Paritz & Company, P.A. and requested that Paritz & Company, P.A. furnish it with a letter addressed to the Securities and Exchange Commission stating whether Paritz & Company, P.A. agrees with the above statements. A copy of Paritz & Company, P.A.'s letter, dated October 25, 2018, is filed as Exhibit 16.1 to this Form 8-K.
During the fiscal years ended March 31, 2018 and 2017 and through October 19, 2018, the Company did not consult with Prager Metis CPAs, LLC on (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that may be rendered on the Company's financial statements, and Prager Metis CPAs, LLC did not provide either in a written report or oral advice to the Company that was an important factor considered by the Company in reaching a decision as to any accounting, auditing, or financial reporting issue; or (ii) the subject of any disagreement, as defined in Item 304 (a)(1)(v) of Regulation S-K and the related instructions, or a reportable event within the meaning set forth in Item 304 (a)(1)(V) of Regulation S-K.