Business Context and Reporting Period
This Form 8-K Current Report was filed by GrowGeneration Corp. on March 28, 2022. The filing addresses a material change in the Company's independent registered public accounting firm, approved by the Audit Committee of the Board of Directors.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on corporate governance and audit matters.
Material Changes
- Dismissal of Auditor: On March 28, 2022, the Company dismissed Plante & Moran, PLLC as its independent registered public accounting firm.
- Appointment of New Auditor: On the same date, the Company appointed Grant Thornton LLP as its new independent registered public accounting firm, effective immediately, to perform audit services for the fiscal year ending December 31, 2022.
- Audit Opinion History: Plante & Moran's reports for fiscal years 2021 and 2020 did not contain adverse opinions or disclaimers regarding financial statements. However, the 2021 audit concluded that the Company did not maintain effective internal control over financial reporting due to material weaknesses disclosed in the Form 10-K.
- Disagreements: The Company reported no "disagreements" or "reportable events" with Plante & Moran regarding accounting principles, practices, or auditing scope, other than the noted internal control deficiencies.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding future business performance. The primary risk disclosed is the historical lack of effective internal control over financial reporting as of December 31, 2021, which was the subject of the prior auditor's opinion.
Investor Verification Checklist
- Verify the reasons for the dismissal of Plante & Moran beyond the stated lack of internal controls.
- Review the attached Exhibit 16.1 (Plante & Moran's letter to the SEC) to confirm their stance on the Company's disclosures.
- Monitor the Company's progress in remediating the material weaknesses in internal controls identified in the 2021 Form 10-K.
- Confirm the transition timeline and scope of work for the new auditor, Grant Thornton LLP.