FLANIGANS ENTERPRISES INC - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Flanigan's Enterprises, Inc. on May 9, 2025. The filing addresses Item 4.01, reporting a change in the Company's certifying accountant. The Company is incorporated in Florida and its common stock trades on the NYSE American under the symbol BDL.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on the transition of the independent registered public accounting firm.
Material Changes
- Resignation of Auditor: Marcum LLP resigned as the Company's independent registered accounting firm on May 9, 2025.
- Appointment of New Auditor: CBIZ CPAs P.C. was engaged effective immediately on May 9, 2025, following the acquisition of Marcum's attest business on November 1, 2024, and approval by the Audit Committee.
- Historical Audit Opinions: Marcum's reports for fiscal years ended September 28, 2024, and September 30, 2023, did not contain adverse opinions, disclaimers, or qualifications regarding uncertainty, scope, or accounting principles.
- Disagreements: There were no disagreements with Marcum on accounting principles, practices, or auditing scope during the relevant periods.
Outlook, Risks, and Contingencies
The filing discloses previously reported "reportable events" constituting material weaknesses in internal control over financial reporting. These weaknesses were identified in prior 10-K and 10-Q filings and include:
- Personnel and Debt Covenants: Insufficient accounting personnel and issues with debt covenant calculations (remediated in the quarter ended March 30, 2024).
- IT and Process Controls: Ineffective information technology and business process controls regarding access restrictions and program changes.
- Revenue Recognition: Ineffective controls over the timely and accurate recognition of deferred revenues associated with promotional gift cards.
- Verify the status of remediation for the material weaknesses related to IT controls and deferred revenue recognition, as the personnel issue was noted as remediated in March 2024.
- Review the letter from Marcum LLP (Exhibit 16.1) to confirm their agreement with the Company's statements regarding the resignation.
- Monitor future filings for the first audit opinion issued by CBIZ CPAs for the fiscal year ending September 27, 2025.
- Confirm that no new disagreements or reportable events have arisen since the date of this filing.
The Company confirmed no consultations with CBIZ CPAs regarding accounting principles or audit opinions prior to their engagement.