AirNet Announces Change of Auditor

Rhea-AI Summary

AirNet Technology Inc. (Nasdaq: ANTE) has announced the appointment of Assentsure PAC as its new independent registered public accounting firm, replacing Audit Alliance LLP effective January 2, 2025. The change was approved by both the board of directors and the audit committee.

The company reported no disagreements with Audit Alliance on accounting principles, financial statements, or auditing procedures during 2022, 2023, and through January 2, 2025. Additionally, there were no reportable events during this period. AirNet confirms that no prior consultations occurred with Assentsure regarding accounting principles, audit opinions, or financial reporting issues before their engagement.

Insights

Financial Compliance Expert

The auditor change from Audit Alliance to Assentsure PAC appears routine and well-documented, following proper SEC disclosure requirements for foreign private issuers under Form 20-F. The disclosure specifically confirms no disagreements or reportable events during the transition period, which is important for maintaining market confidence. However, given ANTE's micro-cap status ($6.4M) and history as a Chinese company listed on NASDAQ, this auditor change warrants attention.

Critical details to note: The timing of this change at the beginning of 2025 suggests a strategic decision to start the new fiscal year with a new auditor. Assentsure PAC, based in Singapore, takes over from another Singapore-based firm, indicating continued reliance on regional expertise. The absence of any prior consultation with Assentsure on significant accounting matters suggests a clean transition without underlying issues.

For investors, while auditor changes can sometimes signal underlying problems, the transparent disclosure and absence of disagreements provide some reassurance. However, the company's micro-cap status and the challenges facing U.S.-listed Chinese companies under the Holding Foreign Companies Accountable Act (HFCAA) make this a development worth monitoring.

BEIJING, Jan. 3, 2025 /PRNewswire/ -- AirNet Technology Inc., formerly known as AirMedia Group Inc. ("AirNet" or the "Company") (Nasdaq: ANTE), today announced the appointment of Assentsure PAC ("Assentsure") as the Company's independent registered public accounting firm to replace Audit Alliance LLP ("Audit Alliance"), effective January 2, 2025. The change of the Company's independent auditor was made after careful consideration and evaluation process and was approved by the board of directors of the Company (the "Board") and the audit committee of the Board.

During each of the years ended December 31, 2022 and 2023, and during the subsequent period through January 2, 2025, there have been no (1) "disagreements" (as defined in Item 16F(a)(1)(iv) of Form 20-F and the related instructions thereto) between the Company and Audit Alliance on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreement, if not resolved to the satisfaction of Audit Alliance, would have caused Audit Alliance to make reference to the subject matter of the disagreement thereto in its reports on the consolidated financial statements for such years, or (2) "reportable events" as that term is described in accordance with Item 16F(a)(1)(v) of Form 20-F.

During the Company's two most recent fiscal years ended December 31, 2023, and the subsequent period prior to the Company's engagement of Assentsure, neither the Company nor anyone acting on its behalf consulted Assentsure with respect to (1) 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 that Assentsure concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing or financial reporting issue, (2) any matter that was the subject of a disagreement, as that term is defined in Item 16F(a)(1)(iv) of the instructions to Form 20-F, or (3) any reportable event as defined in Item 16F(a)(1)(v) of the instructions to Form 20-F.

The Company is working closely with Assentsure and Audit Alliance to ensure a seamless transition.

Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "is expected to," "anticipates," "aim," "future," "intends," "plans," "believes," "are likely to," "estimates," "may," "should" and similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements are based upon management's current expectations and current market and operating conditions, and involve inherent risks and uncertainties, all of which are difficult to predict and many of which are beyond the Company's control, which may cause its actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

Company Contact

Penny Pei
Investor Relations
AirNet Technology Inc.
Tel: +86-10-8460-8678
Email: penny@ihangmei.com 

View original content:https://www.prnewswire.com/news-releases/airnet-announces-change-of-auditor-302341780.html

SOURCE AirNet Technology Inc.

FAQ

When did AirNet Technology (ANTE) change its auditor to Assentsure PAC?

AirNet Technology (ANTE) appointed Assentsure PAC as its new independent auditor effective January 2, 2025, replacing Audit Alliance LLP.

Were there any disagreements between AirNet (ANTE) and Audit Alliance before the auditor change?

No, there were no disagreements between AirNet and Audit Alliance on accounting principles, financial statements, or auditing procedures during 2022, 2023, and through January 2, 2025.

Did AirNet (ANTE) consult with Assentsure PAC before appointing them as auditors?

No, neither AirNet nor anyone acting on its behalf consulted with Assentsure PAC regarding accounting principles, audit opinions, or financial reporting issues prior to their engagement.

Who approved the change of auditors for AirNet Technology (ANTE)?

The change of auditors was approved by both AirNet's board of directors and the audit committee of the Board.