Business Context and Reporting Period
Company: Coffee Holding Co., Inc. (JVA)
Filing Type: Form 8-K (Current Report)
Date of Report: March 24, 2021
Principal Executive Offices: Staten Island, New York
This filing reports a change in the Company's independent registered public accounting firm. The Audit Committee approved the dismissal of Marcum LLP, effective March 25, 2021, and the engagement of EisnerAmper LLP for the fiscal year ending October 31, 2021.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses exclusively on the change in auditors and related disclosures regarding internal controls.
Material Changes Versus Prior Period
- Accounting Firm Change: Transition from Marcum LLP to EisnerAmper LLP.
- Reason for Change: The filing explicitly states the change is not the result of any disagreement with Marcum LLP regarding accounting principles, practices, or auditing scope.
- Historical Opinions: Marcum's audit reports for fiscal years ended October 31, 2019, and 2020 did not contain adverse opinions or disclaimers. The 2020 report included an explanatory paragraph regarding the adoption of ASC Topic 842 (Leases).
Outlook, Risks, and Contingencies
Internal Control Weaknesses: The Company has reported material weaknesses in its internal controls over financial reporting for the periods ended April 30, 2019, and October 31, 2020. These weaknesses constitute "reportable events" under Regulation S-K. Marcum LLP concurred with the Company's assessment of these weaknesses.
Remediation: Management and the Audit Committee have developed a remediation plan, detailed in the Company's Annual Report on Form 10-K for the year ended October 31, 2020.
Financial Statement Reliability: Despite the material weaknesses, the Company concluded that its consolidated financial statements for fiscal years 2019 and 2020 present fairly, in all material respects, its financial condition and results of operations in conformity with U.S. GAAP.
Consultation with New Auditor: The Company confirmed no consultations with EisnerAmper LLP regarding accounting principles, disagreements, or reportable events prior to their engagement.
Investor Verification Checklist
- Verify the status of the remediation plan for material weaknesses in internal controls over financial reporting.
- Review the letter from Marcum LLP (to be filed as an exhibit) confirming their agreement with the statements in this 8-K.
- Examine the most recent Form 10-K and 10-Q filings for detailed financial metrics and updated internal control assessments.
- Monitor future filings for any disagreements or reportable events between the Company and the new auditor, EisnerAmper LLP.