On September 2, 2009, the Company engaged Marcum LLP (“Marcum”) as its independent registered public accountants. This engagement occurred in connection with the Company’s prior independent public accountants, Margolis & Company P.C. ("Margolis") resigning, effective August 31, 2009, as a result of combining its practice with Marcum. The engagement of Marcum has been approved by the Audit Committee of the Company's Board of Directors.
Pursuant to applicable rules, the Company makes the following additional disclosures:
(a) Margolis’ reports on the consolidated financial statements of the Company as at and for the fiscal years ended January 31, 2009 and 2008 did not contain any adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles.
(b) During the fiscal years ended January 31, 2009 and 2008 and through August 31, 2009, there were no disagreements with Margolis on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which if not resolved to Margolis' satisfaction would have caused it to make reference thereto in connection with its reports on the financial statements for such years. During the fiscal years ended January 31, 2009 and 2008 and through August 31, 2009, there were no events of the type described in Item 304(a)(1)(v) of Regulation S-K.
(c) During the fiscal years ended January 31, 2009 and 2008 and through September 2, 2009, the Company did not consult with Marcum with respect to any matter whatsoever including without limitation with respect to any of (i) the application of accounting principles to a specified transaction, either completed or proposed; (ii) the type of audit opinion that might be rendered on the Company's financial statements; or (iii) any matter that was either the subject of a disagreement (as defined in Item 304(a)(1)(iv) of Regulation S-K) or an event of the type described in Item 304(a)(1)(v) of Regulation S-K.
The Company has provided Margolis with a copy of the foregoing disclosure and requested that it furnish the Company with a letter addressed to the Securities and Exchange Commission stating whether it agrees with the statements made therein. A copy of such letter, dated September 11, 2009, is filed as Exhibit 16.1 to this Report.
