Business Context and Reporting Period
Greenlane Holdings, Inc. filed a Form 8-K regarding changes to its independent registered public accounting firm. The relevant events occurred on September 14, 2021, with the filing signed on September 15, 2021. Greenlane’s Class A common stock trades on Nasdaq under the symbol GNLN.
Financial Metrics and Liquidity
This filing does not provide revenue, profit, cash flow, margins, debt, liquidity, or other operating or financial performance metrics.
Material Change Versus Prior Period
- The Audit Committee dismissed Deloitte & Touche LLP as Greenlane’s independent registered public accounting firm on September 14, 2021.
- The Audit Committee appointed Marcum LLP as the new independent registered public accounting firm on the same date.
- Deloitte’s audit reports on the consolidated financial statements for the fiscal years ended December 31, 2020 and 2019 contained no adverse opinion or disclaimer and were not qualified or modified regarding uncertainty, audit scope, or accounting principles.
- Greenlane reported no disagreements with Deloitte regarding accounting principles or practices, financial statement disclosures, or audit scope or procedures during 2019, 2020, or the subsequent interim period through the dismissal date.
- Greenlane also reported no reportable events during those periods.
- Greenlane stated that neither it nor anyone acting on its behalf consulted Marcum regarding specified accounting or audit matters under Regulation S-K before Marcum’s engagement.
Guidance, Outlook, Risks, and Unusual Items
The filing provides no financial guidance or operating outlook. The auditor transition is the principal unusual corporate event disclosed. Deloitte was asked to provide the SEC with a letter regarding Greenlane’s disclosures; the filing identifies Deloitte’s September 15, 2021 letter as Exhibit 16.1.
Investor Verification Items
- Review Deloitte’s Exhibit 16.1 letter for any comments on the auditor change disclosures.
- Confirm the scope and timing of Marcum LLP’s engagement in subsequent filings.
- Review subsequent financial statements and audit reports for any changes in audit opinions, internal-control disclosures, accounting treatments, or reportable events.
- Assess whether the auditor change affects the timing or market perception of future financial reporting.