Business Context and Reporting Period
Company: GrowGeneration Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: March 27, 2020
Reporting Period: This filing reports a specific corporate governance event occurring on March 27, 2020, rather than a financial reporting period.
Key Financial Metrics
This Form 8-K filing does not contain financial performance data. There are no disclosures regarding revenue, profit, cash flow, margins, debt, or liquidity in this document.
Material Changes
The filing discloses a material change in the Company's independent registered public accounting firm:
- Dismissal: The Audit Committee approved the dismissal of Connolly Grady & Cha, P.C. as the independent registered public accounting firm.
- Appointment: The Audit Committee approved the appointment of Plante & Moran, PLLC as the new independent registered public accounting firm, effective immediately for the fiscal year ending December 31, 2020.
- Audit History: The reports issued by the former auditor for fiscal years ended December 31, 2019, and 2018, did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
Management Commentary, Risks, and Contingencies
Disagreements and Reportable Events: The Company stated that during the fiscal years ended December 31, 2019 and 2018, and through March 27, 2020, there were no "disagreements" with the former auditor on accounting principles, practices, or auditing scope. Additionally, there were no "reportable events" as defined by Regulation S-K.
Consultations with New Auditor: The Company confirmed that neither it nor anyone on its behalf consulted the newly engaged auditor (Plante & Moran) regarding accounting principles, audit opinions, or matters that were subjects of disagreements or reportable events prior to their engagement.
Investor Verification Checklist
- Verify the effective date of the new auditor's engagement (March 27, 2020).
- Review the attached letter from the former auditor (Exhibit 16.1) to confirm their agreement with the Company's statements regarding the dismissal.
- Monitor future filings (10-K/10-Q) for the first audit opinion issued by Plante & Moran, PLLC.
- Confirm that no undisclosed disagreements or reportable events exist by cross-referencing the former auditor's letter to the SEC.