Filing Analysis
Noble Roman's, Inc. has dismissed its principal accountant, Assurance Dimensions, and engaged Sassetti LLC to audit the company's annual consolidated financial statements for the fiscal year ending December 31, 2024.
🚩 Red Flags
- Change in certifying accountant (Item 4.01) can sometimes precede restatements or disagreements, though none were reported here.
📋 Key Facts
- Dismissal of Assurance Dimensions as principal accountant effective August 27, 2024.
- Engagement of Sassetti LLC to audit annual and quarterly consolidated financial statements.
- The company stated there were no disagreements with the previous auditor regarding accounting principles or practices.
- Assurance Dimensions' prior reports did not contain adverse opinions, disclaimers, or qualifications.
Noble Roman's, Inc. reported the results of its 2024 annual meeting of shareholders held on August 27, 2024. The meeting resulted in the election of three directors and the ratification of the company's independent auditor.
📋 Key Facts
- Annual Meeting held on August 27, 2024.
- Quorum was met with 56.68% of outstanding shares represented (12,592,551 votes).
- Scott Mobley elected to Class III Director until the 2026 annual meeting.
- Douglas Coape-Arnold and Marcel Herbst elected to Class I Directors until the 2027 annual meeting.
- Ratification of Assurance Dimensions as the independent registered public accounting firm for the year ending December 31, 2024.
Noble Roman's, Inc. has announced that its previously issued financial statements for the fiscal year ended December 31, 2022, should no longer be relied upon due to errors in accounts payable and accumulated deficit. The company identified material weaknesses in its internal control over financial reporting resulting from these errors.
🚩 Red Flags
- Non-reliance on previously issued financial statements (Item 4.02).
- Admission of material weaknesses in internal control over financial reporting.
- Significant understatement of liabilities and accumulated deficit affecting the balance sheet integrity.
📋 Key Facts
- Restatement affects Annual Report on Form 10-K for the year ended December 31, 2022.
- Error originated in years prior to 2020 and was carried forward into 2022.
- Accounts payable and accrued expenses were understated by $1,156,453 (reported $650,582 vs. restated $1,807,035).
- Accumulated deficit was understated by $1,156,453 (reported ($22,953,074) vs. restated ($24,109,527)).
- Total current liabilities increased from $2,316,413 to $3,472,866 due to the correction.
- Management concluded that these errors resulted from material weaknesses in internal control over financial reporting.