8-K: Innovative Food Holdings Announces Change in Independent Registered Public Accounting Firm

Innovative Food Holdings announces the resignation of Assurance Dimensions as its independent auditor and the engagement of Stephano Slack LLC, effective April 28, 2025.

Summary

• Innovative Food Holdings, Inc. (IVFH) announced that Assurance Dimensions, LLC resigned as their independent registered public accounting firm on April 28, 2025.
• Assurance Dimensions resigned due to its decision to exit from providing audit services to publicly traded companies.
• Assurance Dimensions served as IVFH's independent auditor for the fiscal years ended December 31, 2024, 2023, and 2022, and their reports did not contain any adverse opinions or disclaimers.
• There were no disagreements between IVFH and Assurance Dimensions regarding accounting principles, financial statement disclosures, or auditing scope during the specified periods.
• IVFH has engaged Stephano Slack LLC as its new independent registered public accounting firm, effective April 28, 2025.
• Stephano Slack LLC will serve as auditor of the Company's financial statements through September 30, 2025.
• Assurance Dimensions staff will continue to support Stephano Slack for the remainder of the contract to ensure a smooth transition.

Sentiment

Score: 7

Explanation: The announcement is neutral to slightly positive. The transition appears well-managed, and there were no reported disagreements with the previous auditor. The company expresses optimism about working with the new auditor.

Positives

• The transition to a new auditor appears to be well-managed, with Assurance Dimensions staff supporting Stephano Slack to ensure a smooth handover.
• Assurance Dimensions' reports on the Company's consolidated financial statements did not contain any adverse opinions or disclaimers during its tenure.

Risks

• The change in auditors could potentially introduce unforeseen challenges during the transition period.
• The company is subject to economic factors affecting consumer confidence and discretionary spending; cost inflation/deflation and commodity volatility; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; changes in the Company's relationships with vendors and customers.

Future Outlook

The company will continue to advance its mission to provide specialty foods to its customers.

Management Comments

• Gary Schubert, Chief Financial Officer of the Company, commented, 'We appreciate the professional services provided by Assurance Dimensions, LLC over the past years and wish them well in their future endeavors.'
• Gary Schubert, Chief Financial Officer of the Company, commented, 'We look forward to working with Stephano Slack LLC as we continue to advance our mission to provide specialty foods to our customers.'

Industry Context

Changes in auditors are not uncommon, especially when firms decide to exit certain lines of business. The transition appears orderly, which is a positive sign.

Comparison to Industry Standards

• It's common for companies to switch auditors periodically, and the engagement of Stephano Slack LLC aligns with standard corporate governance practices.
• The smooth transition, with Assurance Dimensions supporting Stephano Slack, is a best practice to minimize disruption.

Stakeholder Impact

• Shareholders should be aware of the change in auditors, but the smooth transition minimizes potential concerns.
• Employees may experience a change in processes related to financial reporting and auditing.
• Customers and suppliers are unlikely to be directly impacted by this change.

Key Dates

Keywords

auditor, Stephano Slack LLC, Assurance Dimensions, accounting firm, IVFH, Innovative Food Holdings, resignation, engagement