Eastside Distilling (NASDAQ:EAST) Dismisses M&K CPAS, PLLC as Principal Independent Accountant

On December 4, 2024, Eastside Distilling, Inc. took a significant step by dismissing M&K CPAS, PLLC from its position as the principal independent accountant. The decision was made by the Board of Directors of Eastside Distilling, Inc. with the approval of the Audit Committee.

The audit reports provided by M&K CPAS, PLLC for Eastside Distilling, Inc.’s financial statements for the years ending December 31, 2023, and 2022 did not include any adverse opinion, disclaimer of opinion, or qualification. However, there was a modification in the audit report expressing substantial doubt about Eastside Distilling, Inc.’s ability to continue as a going concern.

During the two most recent fiscal years and the period up to December 4, 2024, there were no disagreements between Eastside Distilling, Inc. and M&K CPAS, PLLC on matters of accounting principles, financial statement disclosure, or auditing scope. M&K CPAS, PLLC had highlighted a material weakness in internal controls to develop reliable financial statements due to the absence of a formal policy for impairment testing inputs.

Following the dismissal of M&K CPAS, PLLC, Eastside Distilling, Inc. appointed Salberg & Company, P.A. as its independent registered public accounting firm for the year ending December 31, 2024. There were no consultations between Eastside Distilling, Inc. and Salberg & Company, P.A. during the recent fiscal years and up to December 4, 2024, regarding accounting principles, auditing opinions, or any disagreements or reportable events, as outlined in Regulation S-K.

As requested, M&K CPAS, PLLC provided a letter addressed to the Securities Exchange Commission to confirm their agreement or disagreement with the statements made in this report. Eastside Distilling, Inc. included a copy of this letter as an exhibit to the report.

Furthermore, Eastside Distilling, Inc. clarified that there were no transactions or consultations with Salberg & Company, P.A. in regard to accounting principles or any matters leading to a disagreement or reportable event as defined by Regulation S-K.

The company disclosed this recent transition in a Form 8-K filing with the Securities and Exchange Commission on December 5, 2024. This change in the certifying accountant will mark a new phase in Eastside Distilling, Inc.’s financial oversight and reporting.

This report is in compliance with the requirements of the Securities Exchange Act of 1934 and was duly authorized by Geoffrey Gwin, the Chief Executive Officer of Eastside Distilling, Inc., signing on behalf of the registrant.

The filing also included the necessary financial statements and exhibits as required under Item 9.01 of the Securities Exchange Act of 1934.

Investors and stakeholders will be keen to observe how this change impacts Eastside Distilling, Inc.’s financial reporting and accountability moving forward.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Eastside Distilling’s 8K filing here.

About Eastside Distilling

Eastside Distilling, Inc manufactures, acquires, blends, bottles, imports, exports, markets, and sells various alcoholic beverages. It operates through two segments, Spirits and Craft Canning + Printing. The company provides whiskey under the Burnside Whiskey brand; vodka under the Portland Potato Vodka brand; rum under the Hue-Hue Coffee Rum brand; and tequila under the Azuñia Tequila brand.