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Sharing Economy International (SEII) switches auditors after reports cite going concern risk

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Sharing Economy International Inc. reported that its Board dismissed LAO Professionals as its independent registered public accounting firm on May 28, 2026, and approved the appointment of Privatco CPA Limited as the new auditor. LAO Professionals’ audit reports for the years ended December 31, 2025 and 2024 contained no adverse or qualified opinions, but did state there is substantial doubt about the Company’s ability to continue as a going concern. The Company disclosed there were no disagreements with LAO Professionals on accounting principles, financial statement disclosure, or auditing procedures, and no reportable events under Regulation S-K Item 304(a)(1)(v). LAO Professionals’ response letter is included as an exhibit.

Positive

  • None.

Negative

  • Auditor reports include going concern doubt – LAO Professionals’ opinions on the 2025 and 2024 financial statements stated there is substantial doubt about Sharing Economy International Inc.’s ability to continue as a going concern, highlighting serious financial sustainability risk despite otherwise unqualified audit opinions.

Insights

SEII changes auditors while prior reports flag going concern doubt.

Sharing Economy International Inc. replaced LAO Professionals with Privatco CPA Limited as its independent auditor, effective May 28, 2026. The Board approved the dismissal and new engagement, and the company reports no disagreements with the former auditor on accounting or audit matters.

LAO Professionals’ audit opinions for 2025 and 2024 were clean on accounting and scope, but explicitly noted substantial doubt about SEII’s ability to continue as a going concern. That language signals significant financial strain even though the accounting itself was not qualified.

The company states it did not consult Privatco on accounting principles or likely audit opinions before engagement, which is standard disclosure. Future annual and quarterly reports from Privatco will show whether the going concern emphasis continues or if any new audit issues emerge.

Item 4.01 Changes in Registrant's Certifying Accountant Governance
The company changed its independent auditing firm, which may involve disagreements on accounting matters.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Auditor dismissal date May 28, 2026 Date SEII dismissed LAO Professionals as auditor
New auditor engagement date May 28, 2026 Date SEII resolved to engage Privatco CPA Limited
Audit years with going concern emphasis 2025 and 2024 Years for which LAO Professionals cited substantial doubt about going concern
independent registered public accounting firm financial
"dismissed LAO Professionals as the independent registered public accounting firm of the Company"
An independent registered public accounting firm is an outside accounting company officially registered with the government regulator to examine and report on a public company's financial records and controls. Investors treat its reports like an impartial inspector’s certificate — they add credibility to financial statements, help spot errors or misleading claims, and reduce the risk that shareholders are relying on unchecked or biased numbers.
going concern financial
"reports ... stated that there is substantial doubt about the Company’s ability to continue as a going concern"
A going concern is a business that is expected to continue its operations and meet its obligations for the foreseeable future, rather than shutting down or selling off assets. This assumption matters to investors because it indicates stability and ongoing profitability, making the business a more reliable investment. Think of it as believing a restaurant will stay open and serve customers, rather than closing down suddenly.
reportable events regulatory
"There were no reportable events, as listed in Item 304(a)(1)(v) of Regulation S-K"
Reportable events are significant incidents or changes a company is legally required to disclose to regulators and the public, such as major safety problems, legal actions, financial irregularities, or management changes. They matter to investors because these events can alter a company’s risk profile or future performance, much like a dashboard warning light signals a problem that could affect a car’s safety or reliability. Timely disclosure helps investors make informed decisions and maintain market fairness.
Regulation S-K regulatory
"reportable events, as listed in Item 304(a)(1)(v) of Regulation S-K"
A set of U.S. Securities and Exchange Commission rules that tell public companies which narrative and qualitative details must be disclosed in filings, such as risk factors, management discussion, executive pay, legal proceedings and business description. Think of it as a standardized checklist or blueprint that ensures investors get the same types of background information from every company so they can compare risks, management quality and strategy before making investment decisions.
Emerging growth company regulatory
"Securities registered pursuant to Section 12(b) of the Act ... Emerging growth company"
An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.
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Understanding 8-K Material Events →

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 28, 2026

 

Sharing Economy International Inc.

(Exact name of registrant as specified in its charter)

 

Nevada

(State or other jurisdiction of incorporation)

 

001-34591

(Commission File Number)

 

90-0648920

(IRS Employer Identification No.)

 

9205 Country Club Drive

Farmington Hills, Michigan 48221

(Address of principal executive offices) (Zip Code)

 

(248) 971-9325

Registrant’s telephone, including area code

 

______________________________________________

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on

which registered

 

 

 

 

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

Item 4.01 Changes in Registrant’s Certifying Accountant

 

(a) On May 28, 2026, Sharing Economy International Inc. (the “Company”) notified LAO Professionals (“LAO Professionals”) that the Company had dismissed LAO Professionals as the independent registered public accounting firm of the Company.  The Board of Directors of the Company recommended and approved the dismissal.

 

The reports of LAO Professionals regarding the Company’s financial statements as of December 31, 2025 and 2024 and the related consolidated statements of operations and comprehensive loss, consolidated statements of changes in stockholders’ equity, and consolidated statements of cash flows for the years then ended, contained no adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principle.  The reports of LAO Professionals, however, stated that there is substantial doubt about the Company’s ability to continue as a going concern.

 

For the years ended December 31, 2025 and 2024, and during the subsequent interim period through the date of dismissal, the Company had no disagreement with LAO Professionals 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 LAO Professionals, would have caused them to make reference thereto in their report on the Company’s financial statements for such years ended December 31, 2025 and 2024.  There were no reportable events, as listed in Item 304(a)(1)(v) of Regulation S-K.

 

The Company provided LAO Professionals a copy of the above disclosures and requested LAO Professionals to furnish a letter addressed to the Securities and Exchange Commission stating whether or not it agrees with the above statements.  The response of LAO Professionals is attached as Exhibit 16.1 to this Current Report on Form 8-K.

 

(b) On May 28, 2026, the Company resolved to engage the independent registered public accounting firm of Privatco CPA Limited (“Privatco”), the Company’s new independent registered public accountants, which appointment Privatco has accepted.  

 

During the two most recent fiscal years and the interim period preceding the engagement of Privatco, the Company has not consulted with Privatco regarding either: (i) the application of accounting principles, (ii) the type of audit opinion that might be rendered by LAO Professionals or (iii) any other matter that was the subject of disagreement between the Company and its former auditor as described in Item 304(a)(1)(iv), or a reportable event as described in paragraph 304(a)(1)(v), of Regulation S-K. The Company did not have any disagreements with LAO Professionals, and therefore did not discuss any past disagreements with Privatco.

 

Item 9.01 Financial Statements and Exhibits

 

(d) Exhibits:

 

Exhibit

 

Description

 

 

 

16.1

 

Letter from LAO Professionals, dated June 3, 2026

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL Document)

 

 

2

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

SHARING ECONOMY INTERNATIONAL INC.

 

 

 

Date:  June 3, 2026

By:

/s/ Ximing Huang

 

 

Name:

Ximing Huang

 

 

 

Title:

Chief Executive Officer

 

 

 

3

 

Source: View Original Filing on SEC EDGAR

FAQ

What did SEII disclose about its auditor change in this 8-K?

SEII disclosed that its Board dismissed LAO Professionals as independent auditor on May 28, 2026 and appointed Privatco CPA Limited. The company reported no disagreements with LAO Professionals on accounting principles, financial statement disclosure, or audit procedures, and no reportable events under Regulation S-K Item 304(a)(1)(v).

Why is the going concern language in SEII’s audit reports important?

LAO Professionals’ reports on SEII’s 2025 and 2024 financial statements stated substantial doubt about the company’s ability to continue as a going concern. This signals serious financial pressure even though the opinions were not otherwise qualified or adverse and can influence how investors assess risk.

Did SEII have any disagreements with its former auditor LAO Professionals?

SEII stated it had no disagreements with LAO Professionals over accounting principles, practices, financial statement disclosure, or audit scope and procedures for 2025, 2024, and the subsequent interim period. Without unresolved disagreements, LAO Professionals did not reference any such issues in their audit reports.

What role will Privatco CPA Limited play for SEII going forward?

Privatco CPA Limited has been engaged as SEII’s new independent registered public accounting firm. Privatco will audit future financial statements and issue audit opinions, which will show whether the going concern emphasis continues or if any new accounting or audit issues are identified for upcoming reporting periods.

How did SEII handle communication with LAO Professionals after dismissal?

SEII provided LAO Professionals a copy of its disclosures about the dismissal and requested a letter to the SEC confirming agreement or disagreement with those statements. LAO Professionals’ response letter is filed as Exhibit 16.1, giving regulators and investors the former auditor’s formal reaction.

Filing Exhibits & Attachments

6 documents

Other Documents