Katapult Holdings replaces Grant Thornton as auditor
Katapult replaces Grant Thornton with Elliott Davis as auditor while highlighting prior going-concern language and the remediation of earlier internal control weaknesses.
Rhea-AI Filing Summary
Katapult Holdings, Inc. (KPLT) reported that its Audit Committee dismissed Grant Thornton LLP as independent registered public accounting firm on September 2, 2026 and, effective the same day, appointed Elliott Davis, PLLC as the new auditor. Grant Thornton’s audit reports for the fiscal years ended December 31, 2025 and 2024 were unqualified but included an explanatory paragraph expressing substantial doubt about Katapult’s ability to continue as a going concern. The company states there were no disagreements with Grant Thornton on accounting, disclosure, or audit scope, and no reportable events other than previously disclosed material weaknesses in internal control over financial reporting, which Katapult concluded were remediated as of December 31, 2024. Elliott Davis previously audited CCF Holdings LLC and Aaron’s Intermediate Holdco, Inc., entities that became wholly owned subsidiaries of Katapult following a business combination completed on August 11, 2026.
Positive
- Previously disclosed material weaknesses remediated: Katapult reports that internal control weaknesses related to U.S. GAAP expertise and controls over journal entries and reconciliations were considered remediated as of December 31, 2024, which reduces a prior governance and reporting risk.
Negative
- Going-concern uncertainty highlighted: Grant Thornton’s audit reports for the years ended December 31, 2025 and December 31, 2024 included an explanatory paragraph expressing substantial doubt about Katapult’s ability to continue as a going concern, signaling elevated financial risk.
8-K Event Classification
2 items: 4.01, 9.01
2 items
Item 4.01
Changes in Registrant's Certifying Accountant
Governance
The company changed its independent auditing firm, which may involve disagreements on accounting matters.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Auditor dismissal date: September 2, 2026
New auditor appointment date: September 2, 2026
Fiscal years with going-concern explanatory paragraph: 2025 and 2024
+2 more
5 metrics
Auditor dismissal date
September 2, 2026
Date Audit Committee approved dismissal of Grant Thornton as auditor
New auditor appointment date
September 2, 2026
Date Elliott Davis was engaged as new independent registered public accounting firm
Fiscal years with going-concern explanatory paragraph
2025 and 2024
Grant Thornton’s reports on Katapult’s financial statements
Material weaknesses remediation date
December 31, 2024
Date Katapult concluded previously disclosed internal control weaknesses were remediated
Business combination closing date
August 11, 2026
Completion of business combination with CCF Holdings LLC and Aaron’s Intermediate Holdco, Inc.
Key Terms
independent registered public accounting firm, going concern, material weaknesses in internal controls over financial reporting, reportable events, +1 more
5 terms
independent registered public accounting firm financial
"approved the dismissal of Grant Thornton LLP as the Company’s independent registered public accounting firm"
An independent registered public accounting firm is an outside accounting company officially registered with the government regulator to examine and report on a public company's financial records and controls. Investors treat its reports like an impartial inspector’s certificate — they add credibility to financial statements, help spot errors or misleading claims, and reduce the risk that shareholders are relying on unchecked or biased numbers.
going concern financial
"included an explanatory paragraph expressing substantial doubt about the Company’s ability to continue as a going concern"
Going concern is the accounting assumption that a company will keep operating and meeting its obligations for the foreseeable future. The phrase matters most when a company or its auditors disclose substantial doubt about it, a formal warning that the business may not have enough resources to continue without raising money, restructuring, or selling assets. That language in a filing or press release signals elevated financial risk.
material weaknesses in internal controls over financial reporting financial
"except for the material weaknesses in internal controls over financial reporting previously disclosed"
A material weakness in internal controls over financial reporting is a serious flaw in a company’s systems or processes that makes it likely the financial statements could contain significant errors or omissions. For investors, it matters because these weaknesses raise the risk that reported results are unreliable—like a broken lock on a safe—leading to unexpected restatements, surprise losses, regulatory scrutiny, or damage to trust that can affect the stock price and investor decisions.
reportable events regulatory
"no “reportable events” (as that term is defined in Item 304(a)(1)(v) of Regulation S-K)"
Reportable events are significant incidents or changes a company is legally required to disclose to regulators and the public, such as major safety problems, legal actions, financial irregularities, or management changes. They matter to investors because these events can alter a company’s risk profile or future performance, much like a dashboard warning light signals a problem that could affect a car’s safety or reliability. Timely disclosure helps investors make informed decisions and maintain market fairness.
business combination financial
"business combination with CCF Holdings LLC and Aaron’s Intermediate Holdco, Inc."
A business combination happens when two or more companies join together to operate as one, like two friends merging their teams into a single group. This is important because it can change how companies grow, compete, and make money, often making them bigger and more powerful in the market.
FAQ
What auditor change did Katapult Holdings (KPLT) announce on September 2, 2026?
Katapult’s Audit Committee dismissed Grant Thornton LLP as its independent registered public accounting firm and, effective the same day, engaged Elliott Davis, PLLC as the new independent auditor.
Did Grant Thornton issue going-concern language for Katapult (KPLT)?
Yes. Grant Thornton’s reports on Katapult’s financial statements for the years ended December 31, 2025 and December 31, 2024 contained an explanatory paragraph expressing substantial doubt about the company’s ability to continue as a going concern.
Were there any disagreements between Katapult (KPLT) and Grant Thornton?
Katapult states there were no disagreements with Grant Thornton on accounting principles, financial statement disclosure, or auditing scope or procedures during the relevant periods, as defined in the SEC’s Regulation S-K.
What internal control issues did Katapult (KPLT) report and what is their status?
Katapult cites previously disclosed material weaknesses involving personnel with appropriate U.S. GAAP knowledge and controls over journal entries and reconciliations, and reports these were concluded to be remediated as of December 31, 2024.
What is Elliott Davis’s prior relationship to Katapult’s current subsidiaries?
Elliott Davis served as independent auditor for CCF Holdings LLC since 2020 and Aaron’s Intermediate Holdco, Inc. since 2024. Both entities became wholly owned subsidiaries of Katapult following a business combination completed on August 11, 2026.
Did Katapult or its representatives previously consult Elliott Davis on its own accounting issues?
Katapult reports that, during the two most recent fiscal years and the subsequent interim period, it did not consult Elliott Davis on the application of accounting principles, expected audit opinions, or any disagreements or reportable events under Regulation S-K.
AI-generated analysis. How Rhea-AI works. Not financial advice.
