. On April 21, 1998, Wiss & Company, LLP ("Wiss") informed Chromatics
Color Sciences International, Inc. (the "Company") that, based on mutual
determination between the Company and Wiss, it would not stand for re-election
as the Company's principal accountants for the audit of the Company's financial
statements following the completion of its most recent audit of the Company's
financial statements on February 17, 1998 in connection with the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 1997.
Wiss' report on the financial statements for the fiscal year ended
December 31, 1996 included a statement, indicating that the financial statements
were prepared by Wiss on the assumption that the Company would continue as a
going concern. Wiss' report on the financial statements for the fiscal year
ended December 31, 1997 did not contain such statement. Wiss' reports for fiscal
years 1996 and 1997 contained no other adverse opinions, disclaimers of opinion
or modifications as to uncertainty, audit scope or accounting principles.
Within the two most recent fiscal years and the subsequent interim
period preceding Wiss' notification confirming that it would not stand for
re-election, there were no disagreements between the Company and Wiss on any
matter of accounting principles or practices, financial statement disclosure or
auditing scope or procedures, which disagreements if not resolved to Wiss'
satisfaction would have caused it to make reference in connection with its
report to the subject matter of the disagreement.
Wiss has not advised the Company of any reportable events as defined in
paragraphs (A) through (D) of Regulation S-K Item 304(a)(1)(v).
The Company has furnished Wiss with the disclosures the Company is
making in this Form 8-K and has requested Wiss to furnish the Company with a
letter addressed to the Securities and Exchange Commission (the "SEC") stating
whether Wiss agrees with the statements made by the Company above, and if not,
stating the respects in which it does not agree. Such letter is filed as an
exhibit to this Form 8-K.
The Company's new Audit Committee is currently finalizing the selection
of an international independent accounting firm. The Company expects to announce
the engagement of such new auditors shortly. Wiss has advised the Company that
they will assist in the preparation of the March 31, 1998 Form 10-Q and will
work with the Company's new auditors in effecting a prompt and orderly
transition. |
