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Codere Online Financial Report: Audit Challenges & Future Steps

$CDRO
Form 6-K
Filed on: 2024-12-27
Source
Codere Online Financial Report: Audit Challenges & Future Steps

Here are the key insights and information extracted from the financial report:

  1. Company Information:
  • Name: Codere Online Luxembourg, S.A.
  • Address: 7 rue Robert Stümper, L-2557 Luxembourg, Grand Duchy of Luxembourg.
  • Commission File Number: 001-41107.
  1. Audit Firm Engagement:
  • Codere Online initially engaged Marcum LLP as its independent registered public accounting firm on March 8, 2024.
  1. Resignation of Audit Firm:
  • Marcum LLP resigned on December 20, 2024, primarily due to their inability to complete certain audit procedures. This was attributed to IT control deficiencies and insufficient internal controls related to third-party platforms used by the company.
  1. Audit Disagreements:
  • During the past two fiscal years (ending December 31, 2023), there were no disagreements between Codere Online and Marcum on any accounting principles, practices, disclosures, or audit procedures.
  1. Reportable Events:
  • The company had reported material weaknesses in internal control over financial reporting for the years 2022 and 2021. Issues included a lack of qualified personnel, insufficient internal controls over business processes, and cybersecurity controls.
  1. Future Audit Firm:
  • Codere Online is currently in advanced discussions with several candidates to appoint a new independent registered public accounting firm for fiscal years ending December 31, 2023, and 2024.
  1. Regulatory Compliance:
  • The company is working to complete and file its Form 20-F for the year ended December 31, 2023, to regain compliance with Nasdaq requirements.
  1. Forward-Looking Statements:
  • The report includes forward-looking statements about the company's expectations for appointing a new auditor and compliance activities, which are subject to risks and uncertainties.
  1. Signature:
  • The report is signed by Oscar Iglesias, Chief Financial Officer, dated December 27, 2024.

This information highlights key governance and compliance challenges faced by Codere Online, notably regarding audit processes, internal controls, and regulatory obligations.