Business Context and Reporting Period
Akanda Corp., a United Kingdom-based foreign private issuer, filed Form 6-K for March 2023 on March 21, 2023. The filing reports a change in the Company’s independent auditor and relates primarily to its financial year ended December 31, 2022.
Key Financial Metrics and Liquidity
The filing does not provide revenue, profit, cash flow, margin, debt, liquidity, or other operating metrics.
The former auditor’s reports for the years ended December 31, 2021 and 2020 did not contain adverse opinions, disclaimers, or qualifications, except for an assessment expressing substantial doubt about the Company’s ability to continue as a going concern.
Material Changes
- BF Borgers CPA PC was dismissed as auditor effective February 20, 2023.
- Green Growth CPAs was appointed as successor auditor effective March 21, 2023, including as auditor for the year ended December 31, 2022.
- The Audit Committee and Board of Directors approved the auditor change.
- Akanda stated that there were no disagreements with the former auditor regarding accounting principles, financial statement disclosures, audit scope, or procedures.
- The Company reported that no specified reportable events occurred during the two fiscal years ended December 31, 2021 and 2020 or through the dismissal date.
Outlook, Risks, and Unusual Items
The filing provides no financial guidance or operating outlook. The principal risk-related disclosure is the former auditor’s prior assessment of substantial doubt regarding the Company’s ability to continue as a going concern.
The filing includes Exhibit 99.1, a letter from BF Borgers CPA PC to the Securities and Exchange Commission regarding the auditor change. Akanda intends to use the filing and exhibit to satisfy applicable Form 20-F Item 16F reporting requirements for the year ended December 31, 2022.
Investor Verification Items
- Review Akanda’s Form 20-F for the year ended December 31, 2022 and the successor auditor’s report.
- Assess the basis for the former auditor’s going-concern assessment and any subsequent changes in liquidity or financing.
- Review Exhibit 99.1 for the former auditor’s confirmation or response to the Company’s statements.
- Verify whether the auditor transition affected the timing, scope, or conclusions of the 2022 audit.