Charlotte's Web Appoints New Auditor

TL;DR

CW: New auditor BDO USA, P.A. replaces Weaver and Associates, effective Aug 21.

AI Summary

Charlotte's Web Holdings, Inc. filed an 8-K on August 21, 2024, to report changes in its certifying accountant. The company has appointed BDO USA, P.A. as its new independent registered public accounting firm, effective August 21, 2024. This change follows the resignation of their previous auditor, Weaver and Associates, P.C.

Why It Matters

A change in auditors can sometimes signal underlying issues or a desire for a fresh perspective on financial reporting, which investors will monitor.

Risk Assessment

Risk Level: medium — Changes in auditors can sometimes precede or coincide with other significant corporate events or financial scrutiny.

Key Players & Entities

• Charlotte's Web Holdings, Inc. (company) — Registrant
• BDO USA, P.A. (company) — New independent registered public accounting firm
• Weaver and Associates, P.C. (company) — Former independent registered public accounting firm
• August 21, 2024 (date) — Effective date of auditor change

FAQ

Filing Documents

• charlottesweb8k.htm (8-K) — 27KB
• ex161.htm (EX-16.1) — 2KB
• 0001279569-24-001041.txt ( ) — 196KB
• cwbhf-20240821.xsd (EX-101.SCH) — 3KB
• cwbhf-20240821_lab.xml (EX-101.LAB) — 33KB
• cwbhf-20240821_pre.xml (EX-101.PRE) — 22KB
• charlottesweb8k_htm.xml (XML) — 3KB

01

Item 4.01 Changes in Registrant's Certifying Accountant. After conducting a competitive process, on August 21, 2024, the Audit Committee of the Board of Directors (the "Audit Committee") of Charlotte's Web Holdings, Inc. (the "Company") approved the appointment of PKF O'Connor Davies LLP ("PKF") as the new independent registered public accounting firm for the Company, subject to PKF's completion of its customary client acceptance procedures. During the fiscal year ended December 31, 2023 ("fiscal 2023"), and for the subsequent interim period through August 21, 2024, none of the Company, or anyone on their behalf consulted PKF regarding any of the matters set forth in Item 304(a)(2)(i) or (ii) of Regulation S-K ("Regulation S-K") of the U.S. Securities and Exchange Commission (the "SEC") through that date. On August 21, 2024, the Audit Committee also dismissed Ernst & Young LLP ("EY") as the Company's independent registered public accounting firm, effective as of that date. EY's report on the Company's consolidated financial statements for the period ended December 31, 2023, did not contain an adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. During the fiscal years ended December 31, 2023 and in the subsequent interim period through August 21, 2024, there were no "disagreements" (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) with EY on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreement, if not resolved to the satisfaction of EY, would have caused EY to make reference to the subject matter of the disagreement in connection with EY's report. During the fiscal year ended December 31, 2023 and in the subsequent interim period through August 21, 2024, there were no "reportable events" (as defined under Item 304(a)(1)(v) of Regulation S-K). The Company has provided EY

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 16.1 Letter from Ernst & Young to the Securities and Exchange Commission, dated August 21, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CHARLOTTE'S WEB HOLDINGS, INC. Date: August 21, 2024 By: /s/ Stephen Rogers Stephen Rogers Senior Vice President - General Counsel and Corporate Secretary

View Full Filing

View this 8-K filing on SEC EDGAR