Dave Inc. Form 8-K Summary
Business context and reporting period
Dave Inc. filed a Form 8-K reporting changes to its independent registered public accounting firm. The reported event occurred on June 8, 2022; the filing was signed on June 13, 2022. The company is an emerging growth company whose common stock and warrants trade on Nasdaq under DAVE and DAVEW, respectively.
Financial metrics and liquidity
This filing does not provide current revenue, profit, cash flow, margin, debt, liquidity, or other operating-performance figures. It states that Moss Adams LLP’s audit reports on the company’s 2021 and 2020 consolidated financial statements contained no adverse opinion, disclaimer, or qualification.
Material changes versus the prior comparable period
- Dave dismissed Moss Adams as its independent registered public accounting firm effective June 8, 2022.
- Dave appointed Deloitte & Touche LLP as its new independent registered public accounting firm for the year ending December 31, 2022, subject to Deloitte completing its client acceptance process.
- Moss Adams will continue performing limited review and audit procedures related to its previously completed audit of the December 31, 2021 financial statements.
Management commentary, risks, contingencies, and unusual items
- Moss Adams identified two material weaknesses in internal control over financial reporting that had not been remediated as of December 31, 2021.
- The first weakness involved insufficient formal accounting policies, procedures, and controls over period-end reporting, reconciliations, journal entries, disclosures, and segregation of duties, partly due to insufficient accounting and finance personnel.
- The second weakness involved IT general controls, including program change management, user access and segregation of duties, and monitoring of critical batch jobs and data backups.
- Despite these weaknesses, Dave stated that its consolidated financial statements presented its financial position, results of operations, stockholders’ equity, and cash flows fairly, in all material respects, in conformity with U.S. GAAP.
- The company reported no disagreements with Moss Adams regarding accounting principles, disclosures, or audit scope, and no reportable events other than the disclosed material weaknesses.
- Dave stated that neither it nor anyone acting on its behalf consulted Deloitte during the relevant periods regarding accounting principles, audit opinions, disagreements, or reportable events.
Important facts for investors to verify
- Whether Deloitte completed its client acceptance process and formally commenced the 2022 audit engagement.
- The remediation status of the two material weaknesses, including staffing, financial reporting controls, segregation of duties, and IT controls.
- Whether the company’s subsequent filings disclose additional control deficiencies, restatements, audit modifications, or changes in audit conclusions.
- The June 13, 2022 Moss Adams letter included as Exhibit 16.1 and any related auditor comments.