Business Context and Reporting Period
This Form 8-K is filed by Eastside Distilling, Inc. (not Beeline Holdings, Inc.) on December 4, 2024. The report details a change in the company's certifying accountant.
Key Financial Metrics
This filing does not contain specific financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity figures. The document focuses exclusively on the transition of the independent registered public accounting firm.
Material Changes
- Dismissal of Accountant: On December 4, 2024, the Board of Directors dismissed M&K CPAS, PLLC as the principal independent accountant.
- Appointment of New Accountant: On December 4, 2024, Salberg & Company, P.A. was appointed as the new independent registered public accounting firm for the year ending December 31, 2024.
- Audit History: M&K CPAS, PLLC issued audit reports for the years ended December 31, 2023, and 2022. These reports did not contain adverse opinions but included a modification expressing substantial doubt about the company's ability to continue as a going concern.
- Internal Controls: M&K CPAS, PLLC identified a material weakness in internal controls regarding the lack of a formal policy for testing impairment inputs.
Guidance, Outlook, and Risks
The filing does not provide forward-looking guidance, management commentary on future operations, or specific risk factors beyond the historical audit findings. The primary risk highlighted is the previously noted material weakness in internal controls and the going concern qualification in prior years.
Investor Verification Checklist
- Verify the reasons for the dismissal of M&K CPAS, PLLC and the selection of Salberg & Company, P.A.
- Review the letter from M&K CPAS, PLLC (Exhibit 16) to confirm their agreement with the statements in this 8-K.
- Assess the status of the "going concern" doubt expressed in the 2022 and 2023 audit reports.
- Confirm if the material weakness regarding impairment testing policies has been remediated.