Polished.com Inc.: auditor change — Auditor resigns; Polished to restate Q1 2022 revenue down $6-8M; former CEO settles for ~$800k expense reimbursement

Polished.com Inc.

Auditor Friedman LLP resigned after internal investigation findings of possible material adjustments to prior financials.
Polished expects to restate Q1 2022: revenue reduction of $6-8M, COGS reduction of $5-7M, operating income down $1-2M.
No material restatement expected for FY2021; new auditor Sadler, Gibb & Associates engaged to re-audit FY2021 and review Q2/Q3 2021 and Q1 2022.
Former CEO Albert Fouerti agreed to reimburse ~$800k in non-company expenses and investigation costs; non-compete and non-solicitation included.
Company withdraws prior FY2022 guidance from former management; cites economic headwinds and margin pressures.

item 4.01 item 8.01 item 4.02 item 5.02 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

Friedman LLP resigned as auditor of Polished.com Inc..

Action: resignation
Auditor: Friedman LLP

Exact text from the filing

(a) Resignation of Independent Registered Public Accounting Firm On December 20, 2022, Polished.com Inc. (the “Company”) received a letter (the “Letter”) from the Company’s independent registered public accounting firm, Friedman LLP (“Friedman”), informing the Company of its decision to resign effective December 20,

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Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

Polished.com Inc. engaged Sadler, Gibb & Associates, LLC as its auditor.

Action: engagement
Auditor: Sadler, Gibb & Associates, LLC

Exact text from the filing

On December 26, 2022, the Audit Committee approved the engagement of Sadler, Gibb & Associates, LLC (“Sadler”) as the Company’s independent registered public accounting firm for the fiscal years ended December 31, 2022 and 2021.

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Source: SEC EDGAR

accession 0001213900-22-082892

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