I might be misunderstanding all this lawyer jargon BUT I believe the CPA firm could be classified as a independent director chosen by the board or “the committee”
“Independent Directors (as defined in Rule 5605(a)(2)) play an important role in assuring investor confidence. Through the exercise of independent judgment, they act on behalf of investors to maximize shareholder value in the Companies they oversee and guard against conflicts of interest. Requiring that the board be comprised of a majority of Independent Directors empowers such directors to carry out more effectively these responsibilities.”
c) Audit Committee Requirements
(1) Audit Committee Charter
Each Company must certify that it has adopted a formal written audit committee charter and that the audit committee will review and reassess the adequacy of the formal written charter on an annual basis. The charter must specify:
(A) the scope of the audit committee's responsibilities, and how it carries out those responsibilities, including structure, processes and membership requirements;
(B) the audit committee's responsibility for ensuring its receipt from the outside auditors of a formal written statement delineating all relationships between the auditor and the Company, actively engaging in a dialogue with the auditor with respect to any disclosed relationships or services that may impact the objectivity and independence of the auditor and for taking, or recommending that the full board take, appropriate action to oversee the independence of the outside auditor;
(C) the committee's purpose of overseeing the accounting and financial reporting processes of the Company and the audits of the financial statements of the Company; and
(D) the specific audit committee responsibilities and authority set forth in Rule 5605(c)(3).“
The 8k states
Effective as of February 19, 2020, Red Cat Holdings, Inc., a Nevada corporation (the “Company”), engaged BF Borgers PC CPA (“BF Borgers”) as the Company’s independent registered public accounting firm. The engagement of BF Borgers was approved by the Company’s Board of Directors.
The audit committee is the board and they elected an independent CPA firm(anyone know if they can be classified as an independent director? I believe NASDAQ requires a couple, not sure if the cpa firm can account for the spots?) BF Borgers deals with public companies and says they audit 2.2% of the market for smaller companies according to their website. They work with some NASDAQ and NYSE listed companies.
I think they are slowly preparing for take off...
