SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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): September 2, 1999
BioSpecifics Technologies Corp.
(Exact name of registrant as specified in its charter)
Delaware 0-19879 11-3054851
(State or other (Commission (IRS Employer
jurisdiction of File No.) Identification No.)
incorporation)
35 Wilbur Street, Lynbrook, New York 11563
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (516) 593-7000
Not Applicable
(Former name or former address, if changed since last report)
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Item 4. Changes in Registrant's Certifying Accountant
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KPMG LLP was previously the principal accountants for Biospecifics Technologies
Corp. ("the Registrant"). On August 30, 1999, that firm's appointment as
principal accountants was terminated by the Registrant and Grant Thornton LLP
was engaged as principal accountants. The decision to change accountants was
approved by the Executive Committee of the Board of Directors of the Registrant.
In connection with the audits of the two fiscal years ended January 31, 1999,
and the subsequent interim period through August 30, 1999, there were no
disagreements with KPMG LLP on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedures, which
disagreements if not resolved to their satisfaction would have caused them to
make reference in connection with their opinion to the subject matter of the
disagreement.
The audit reports of KPMG LLP on the consolidated financial statements of the
Registrant as of and for the years ended January 31, 1998 and January 31, 1999,
did not contain any adverse opinion or disclaimer of opinion, nor were they
qualified or modified as to uncertainty, audit scope, or accounting principles,
except as follows:
KPMG LLP's auditors' report on the consolidated financial statements of the
Registrant as of and for the year ended January 31, 1999 contained a separate
paragraph stating that "The accompanying consolidated financial statements have
been prepared assuming that the Company will continue as a going concern. As
discussed in note 2 to the consolidated financial statements, the Company has
received a letter from the United States Food and Drug Administration regarding
the possible revocation of the Company's license to manufacture its primary
product which raises substantial doubt about the Company's ability to continue
as a going concern. Management's plans in regard to this matter are also
described in note 2. The consolidated financial statements do not include any
adjustments that might result from the outcome of this uncertainty".
A letter from KPMG LLP is attached as Exhibit 16 to this Form 8-K.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
16. Letter of KPMG LLP dated September 2, 1999
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BioSpecifics Technologies Corp.
By: /s/ Albert Horcher
-------------------------------------
Albert Horcher
Secretary, Treasurer, Principal Financial
and Chief Accounting Officer
Dated: September 2, 1999
September 2, 1999
Securities and Exchange Commission
Washington, D.C. 20549
Ladies and Gentlemen:
We were previously principal accountants for Biospecifics Technologies Corp.
("Biospecifics") and, under the date of April 16, 1999 (except as to note 2,
which is as of May 10, 1999), we reported on the consolidated financial
statements of Biospecifics and subsidiaries as of and for the years ended
January 31, 1998 and 1999. On August 30, 1999, our appointment as principal
accountants was terminated. We have read Biospecifics' statements included under
Item 4 of its Form 8-K dated September 2, 1999, and we agree with such
statements, except that we are not in a position to agree or disagree with
Biospecifics' statement that the change in auditors was approved by the
Executive Committee of the Board of Directors.
Very truly yours,
KPMG LLP
