Business Context and Reporting Period
This Form 8-K is a current report filed by Rocky Mountain Chocolate Factory, Inc. on October 3, 2018. The filing addresses a change in the Company's independent registered public accounting firm effective October 1, 2018.
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 administrative change of the external auditor.
Material Changes
- Accountant Resignation: EKS&H LLLP ("EKS&H") resigned as the independent registered public accounting firm effective October 1, 2018, following its combination with Plante & Moran PLLC.
- New Engagement: The Company's audit committee approved the engagement of Plante Moran as the new independent registered public accounting firm for the fiscal year ending February 28, 2019.
- Audit History: Audit reports issued by EKS&H for the fiscal years ended February 28, 2018, and 2017 were unqualified and did not contain adverse opinions, disclaimers, or modifications regarding uncertainty, scope, or accounting principles.
- No Disagreements: There were no disagreements between the Company and EKS&H regarding accounting principles, practices, disclosures, or audit scope during the two most recent fiscal years or the interim period preceding resignation.
- No Reportable Events: No reportable events occurred during the relevant periods under Item 304(a)(1)(v) of Regulation S-K.
- No Prior Consultation: The Company did not consult with Plante Moran on accounting principles or audit opinions prior to their engagement.
Guidance, Outlook, and Risks
The filing contains no financial guidance, outlook, or management commentary regarding future performance. No specific risks or contingencies related to the Company's operations were disclosed in this document, other than the standard disclosure regarding the change in auditors.
Investor Verification Checklist
- Verify the transition timeline between EKS&H and Plante Moran to ensure audit continuity for the fiscal year ending February 28, 2019.
- Review the letter from EKS&H (Exhibit 16.1) to confirm their agreement with the Company's statements regarding the resignation.
- Confirm that the change in auditors was driven solely by the firm combination and not by undisclosed disagreements or financial irregularities.