Nocera Inc. (NASDAQ:NCRA), a company specializing in livestock and animal specialties, has announced significant changes to its board and accounting oversight. On Monday, the company's independent registered public accounting firm, Centurion ZD CPA & Co. ("CZD"), resigned. CZD had audited the company's financial statements for the years ending December 31, 2022, and December 31, 2023, noting the company's ability to continue as a going concern without any adverse opinion or disclaimer.
The company reported that during the two most recent fiscal years, there were no disagreements with CZD on any accounting principles or practices, financial statement disclosure, or auditing scope or procedure that, if unresolved, would have warranted a mention in their reports. CZD has provided a letter to the Securities and Exchange Commission confirming their agreement with these statements.
Simultaneously, Nocera's Audit Committee and Board of Directors have approved the engagement of Enmore LLP as the new independent registered public accounting firm as of today. Prior to this engagement, neither the company nor its representatives consulted with Enmore LLP regarding the application of accounting principles or the type of audit opinion that might be rendered on its financial statements.
Furthermore, on Monday, the Board appointed Sean Filson to fill a vacancy created by the passing of Thomas Steele on October 10, 2024. Steele's contributions were highly valued, and his absence is felt across the organization. Filson, with his extensive experience in business development and fluency in Mandarin, is expected to provide valuable insights to Nocera, particularly in market strategy and global partnerships. He will serve on the Audit Committee and as Chairman of the Compensation Committee. There are no reported familial relationships between Filson and any directors or executive officers, nor are there any related-party transactions requiring disclosure.
These changes come at a time when the company is navigating the challenges of maintaining its operational continuity. Nocera has not entered into any compensatory arrangements or employment agreements with Filson at this time. The information provided is based on a press release statement.
In other recent news, Nocera, Inc. is facing potential delisting from The Nasdaq Capital Market due to not meeting the minimum bid price requirement of $1.00 per share over the last 30 consecutive business days. Nasdaq has given Nocera a 180-day period, ending on March 17, 2025, to regain compliance with the Bid Price Rule, which stipulates that the company's stock must close at or above $1.00 per share for a minimum of ten consecutive business days. If Nocera fails to meet this requirement by the Compliance Date, it might be granted an additional 180 days to meet the Bid Price Rule, contingent upon meeting all other initial listing standards for The Nasdaq Capital Market, except for the Bid Price Rule, which could involve measures such as a reverse stock split.
InvestingPro Insights
Recent data from InvestingPro sheds light on Nocera Inc.'s financial position, providing context to the company's recent board and accounting changes. With a market capitalization of $13.91 million, Nocera is currently operating in a challenging environment. The company's revenue for the last twelve months as of Q2 2024 stood at $26.4 million, with a notable revenue growth of 33.73% over the same period. This growth aligns with an InvestingPro Tip suggesting that analysts anticipate sales growth in the current year.
However, Nocera's financial health presents some concerns. The company is not profitable over the last twelve months, with a negative operating income of $1.46 million and a gross profit margin of just 0.83%. These figures underscore the challenges mentioned in the article regarding the company's ability to maintain operational continuity.
An InvestingPro Tip highlights that Nocera's stock has taken a big hit over the last week, with data showing a 10.53% decline in the 1-week price total return. This volatility, coupled with the fact that the stock price has fallen significantly over the last five years, may explain the company's recent focus on strengthening its board and financial oversight.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide further insights into Nocera's financial situation and market position.
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