Business Context and Reporting Period
Company: Consolidated Water Co. Ltd.
Filing Type: Form 8-K (Current Report)
Date of Event: April 7, 2025
Reporting Period: The filing addresses events occurring on April 7, 2025, regarding the change of the independent registered accounting firm.
Key Financial Metrics
This filing does not contain revenue, profit, cash flow, margin, debt, or liquidity figures. The document focuses exclusively on the resignation of the former auditor and the engagement of a new auditor.
Material Changes
- Accountant Resignation: Marcum LLP resigned as the Company's independent registered accounting firm effective April 7, 2025.
- New Auditor Engagement: CBIZ CPAs P.C. was engaged as the new independent registered public accounting firm for the fiscal year ended December 31, 2025, effective immediately upon Audit Committee approval.
- Reason for Change: The change follows the acquisition of Marcum's attest business by CBIZ CPAs on November 1, 2024.
Guidance, Risks, and Unusual Items
- Adverse Opinion History: Marcum's report on internal control over financial reporting as of December 31, 2024, contained an adverse opinion due to a material weakness in ineffective information technology general controls.
- Remediation Status: The deficiency was remediated as of November 1, 2024. However, due to insufficient time to demonstrate operating effectiveness, certain annual and quarterly business process controls were still considered ineffective as of December 31, 2024.
- No Disagreements: The Company reported no disagreements with Marcum regarding accounting principles, practices, or auditing scope during the past two fiscal years or through the date of resignation.
- Consultations: No consultations occurred with CBIZ CPAs regarding accounting principles or audit opinions prior to their engagement.
Investor Verification Checklist
- Verify the status of the remediation of the material weakness in information technology general controls as of the most recent reporting period.
- Review the letter from Marcum LLP (Exhibit 16.1) to confirm their agreement with the Company's statements regarding the resignation.
- Monitor future filings for the new auditor's assessment of internal controls now that sufficient time has passed since the November 2024 remediation.
- Confirm that no other "reportable events" or disagreements exist beyond those disclosed in this filing.