Glass House Brands Reappoints MGO as Auditor After BDO Resigns Over Accounting Issue

Glass House Brands Inc. reappointed MGO as its auditor effective November 6, 2026, after BDO resigned, according to TradingView. BDO said its incomplete review of the deconsolidation accounting was an unresolved issue, and the company disagrees.

Why BDO Left and MGO Returned

BDO resigned before issuing an auditor's report on Glass House Brands financial statements during its tenure. BDO said it had not concluded its evaluation of the deconsolidation accounting, leaving a reporting issue for the incoming auditor. Glass House Brands disagrees with BDO's characterization of the matter.

MGO is expected to complete its review of the company's third-quarter results by November 16, 2026, subject to acceptance, appointment and completion of review procedures. The reappointment restores auditor continuity, though the filing timetable depends on MGO finishing that review.

Glass House Brands' Deconsolidation Records

Glass House Brands filed an NYSE uplisting application in June 2026 following federal cannabis rescheduling to Schedule III, according to akta.pro company records. The filing was accompanied by a deconsolidation transaction that transferred adult-use retail assets to Glass House Retail, LLC, a 90% subsidiary, to meet NYSE requirements. The same records show the company completed a deconsolidation transaction segregating its dual-use cannabis business from its medical cannabis business, with subsidiary GHB Usub, LLC holding non-voting units in the separated entity Glass House Retail, LLC.

Board Resignation and Preliminary Results

On October 19, 2026, Glass House Brands reported preliminary unaudited third-quarter results, including a record harvest and a 37% cost cut from $175 to $110, and announced the resignation of director John Nichols Jr. from its board of directors, Financial Post reported. The company also highlighted GACP certification as a step toward exporting from California.

In August 2026, Glass House Brands reported a net loss of $6.7 million for the second quarter of 2026, contrasting with net income of $8.7 million in the same period a year earlier, Financial Post reported. The company reported record production of 246,000 pounds of biomass in the quarter, according to Yahoo.

MGO's November 16 Review Deadline

MGO's third-quarter review is expected by November 16, 2026, subject to acceptance and appointment procedures and completion of review work. Glass House Brands' own announcement covers the auditor change.