Attached files

file filename
EX-31.2 - EXHIBIT 31.2 - Healthier Choices Management Corp.t1701483_ex31-2.htm
EX-31.1 - EXHIBIT 31.1 - Healthier Choices Management Corp.t1701483_ex31-1.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 10-K/A

 

 

 

þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended: December 31, 2016

 

or

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from: _____________ to _____________

 

HEALTHIER CHOICES MANAGEMENT CORP.

(Exact name of registrant as specified in its charter)

 

Delaware
(State or Other Jurisdiction
of Incorporation or Organization)
001-36469
(Commission
File Number)
84-1070932
(I.R.S. Employer
Identification No.)

 

Address of Principal Executive Office: 3800 North 28th Way, Hollywood, FL 33020

 

Registrant’s telephone number, including area code: (888) 766-5351

 

Securities registered pursuant to Section 12(b) of the Act: Common Stock, par value $0.0001

 

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

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ¨ Yes  þ No

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  ¨ Yes  þ No

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes  ¨ No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). þYes  ¨ No

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

 

Large accelerated filer      ¨      Accelerated filer      ¨      Non-accelerated filer      ¨      Smaller reporting company      þ

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨  þ No

 

The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold as of the last business day of the registrant’s most recently completed second fiscal quarter was approximately $953,896.44 million based on the June 30, 2016 closing price of $0.0002 per share.

 

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. 27,536,251,712 shares outstanding as of May 5, 2017.

 

 

 

 

 

 

INDEX

 

    Page
     
EXPLANATORY NOTE 3
     
PART II
     
Item 9A. Controls and Procedures. 3
     
PART IV
     
Item 15. Exhibits, Financial Statement Schedules. 4

 

 2 

 

EXPLANATORY NOTE

 

Healthier Choices Management Corp. is filing this Amendment No. 1 on Form 10-K/A (this “Amendment”) to amend its Annual Report on Form 10-K for the year ended December 31, 2016, originally filed with the Securities and Exchange Commission (“SEC”) on March 27, 2017 (the “Original Filing”). Based on recent correspondence with the Company’s prior independent registered public accounting firm, the Company determined that it did not maintain effective internal control over financial reporting as of December 31, 2016.

 

This Amendment No. 1 does not reflect events occurring after the filing of the Original Filing, or modify or update the disclosures therein in any way other than as described in the paragraph above. This Amendment No. 1 does not modify or update the Company’s other filings made with the SEC subsequent to the filing of the Original Filing.

 

This Amendment is being filed solely to provide the addition of this statement to Item 9A, Controls and Procedures. This Amendment also includes new certifications by our chief executive officer and chief financial officer pursuant to Sections 302 of the Sarbanes-Oxley Act of 2002 as Exhibits 31.1 and 31.2.

 

Throughout this Amendment, we refer to Healthier Choices Management Corp. and its consolidated subsidiaries as “we,” “us,” and “our.”

 

PART II

 

Item 9A. Controls and Procedures.

 

Management’s Report on Internal Controls Over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal controls over financial reporting, as such term is defined in Rule 13a-15(f) of the Securities Exchange Act of 1934. Under the supervision and with the participation of our management, including our principal executive, financial and accounting officer, we conducted an evaluation of the effectiveness of our internal controls over financial reporting as of December 31, 2016. This evaluation was based on the framework in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).

 

In planning and performing its audit of our financial statements for the year ended December 31, 2016 in accordance with standards of the Public Company Accounting Oversight Board, our prior independent registered public accounting firm (“Prior Auditor”) noted a number of deficiencies in internal control over financial reporting that required audit adjustments that were made to such financial statements. Although our Prior Auditor concluded that not all of the deficiencies rose to the level of a material weakness, they advised us that the combination of such deficiencies constitutes a material weakness in the Company’s internal control over financial reporting related to the overall maintenance of the books and records in full accordance with United States generally accepted accounting principles (“GAAP”).

 

Our Prior Auditor considered the overall deficiency to be related to overall maintenance of our books and records in full accordance with GAAP. This was as a result of insufficient segregation of duties, oversight of work performed and lack of compensating controls in our finance and accounting function due to limited personnel.

 

Our management concluded that considering internal control deficiencies that, in the aggregate, rise to the level of material weaknesses, we did not maintain effective internal control over financial reporting as of December 31, 2016 based on the criteria set forth in COSO.

 

Remediation Efforts

 

Following this assessment and during the first and second quarters of fiscal year 2017, we have undertaken an action plan to strengthen internal controls and procedures:

 

We hired a new accounting team, filling our Chief Financial Officer, Controller and Accounting Manager positions with personnel possessing extensive experience working at large, publicly-traded companies with SEC reporting and numerous areas of technical accounting.

 

 3 

 

Our SEC reporting was brought in-house, providing for a more efficient and better controlled reporting process than that experienced in 2016.

 

The new accounting team has developed a more comprehensive period-end financial reporting review process to ensure our financial reporting is more complete and to reduce audit adjustments.

 

Our management continues to review ways in which we can make improvements in internal control over financial reporting.

 

PART IV

 

Item 15.Exhibits, Financial Statement Schedules.

 

3.Exhibits

 

(a)The following exhibits are filed as part of this report:

 

Number   Description
   
31.1   Certification of Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
   
31.2   Certification of Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 

 4 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on May 8, 2017.

 

  Healthier Choices Management Corp.
     
  By: /s/ Jeffrey Holman
    Jeffrey Holman
   

Chief Executive Officer

(Principal Executive Officer)

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Signature   Title   Date
         
/s/ Jeffrey Holman   Principal Executive Officer   May 8, 2017
Jeffrey Holman   and Director    
         
/s/ John A. Ollet   Chief Financial Officer   May 8, 2017
John A. Ollet   (Principal Financial and Accounting Officer)    
         
/s/ Clifford J. Freidman   Director   May 8, 2017
Clifford J. Freidman        
         
/s/ Anthony Panariello   Director   May 8, 2017
Anthony Panariello        

 

 5