Non-audit service · Independence applies

Fix it before the audit, not inside it

Financial statement preparation, GAAP conversion, S-1 and IPO readiness, and derivative valuation using Black-Scholes and binomial lattice models — performed as your accountant, which means we cannot also be your auditor.

Book a call with the partner Get the checklist

First thing we settle: which role we can take with your company. Accountant or auditor, never both.

Sound familiar?

What usually brings a founder or CFO to this page

You are preparing an S-1 and the financial sections are the part nobody owns.

Your books are on a tax or cash basis and the offering needs US GAAP.

You issued warrants or a convertible note and nobody is certain how they should be classified.

Your auditor raised a valuation or classification issue and the answer requires a model.

Your finance team is two people and the quarter is already consuming both of them.

You want to know what an audit will ask for before the audit starts asking.

What we do

Preparation, conversion and valuation

The work that has to be right before an auditor ever opens the file — performed by a firm that knows what the auditor is going to ask, because we sit in that chair for other companies.

Financial statements in Regulation S-X form for 10-K, 10-Q, 8-K and registration statements

GAAP conversion from cash, tax or foreign basis of accounting

Registration statement financial sections for S-1, S-11 and Form 10

Derivative liability valuation — Black-Scholes and binomial lattice models

Warrants, convertible notes and embedded features, including reset and down-round provisions

Stock compensation valuation and ASC 718 disclosure support

Technical memoranda on revenue, leases, business combinations and instrument classification

Audit-readiness schedules and documentation, packaged the way an auditor will ask for them

Warrant & Convertible Note Classification Checklist

The terms that drive equity-versus-liability classification, and which of them force you into a lattice model rather than Black-Scholes — written for CFOs and controllers who have to defend the answer.

The instrument terms that most often force liability classification
When Black-Scholes is defensible and when it is not
What a lattice model needs that Black-Scholes does not
Assumptions and inputs your auditor will ask you to support
Documentation to build while the instrument is being issued, not after

Send me the checklist

We will send the checklist and nothing else unless you ask. No fee information is collected on this page.

We plan backward from your deadline

Registration statements run on dates set by counsel and the Commission. Preparation, conversion and valuation are scheduled backward from the filing date, and packaged for the audit firm that follows us.

A dated engagement calendar before fieldwork begins

One consolidated request list, not a trickle of emails

Weekly written status against the calendar

Issues raised the week we find them

Partner reachable directly when a date is at risk

The partner who scopes the work stays on it

If we prepare it, we cannot audit it

This is the one point with no flexibility in it. Independence rules prohibit an audit firm from auditing financial statements it prepared. If we perform this work, your audit must be performed by a different firm — and your auditor cannot do this work either, for the same reason. Registrants need two firms. We are comfortable in either chair; you choose which.

Questions

Before you book

Can you prepare our financials and then audit them?

No. Independence rules prohibit an audit firm from auditing financial statements it prepared. If we do this work, your audit goes to a different firm. We would rather lose the audit than blur that line — and any firm that tells you otherwise is telling you something that will surface later.

Then why use you instead of our auditor’s firm?

Because your auditor cannot do it either, for the same reason. Registrants need two firms: one that prepares and one that audits. We are comfortable in either chair.

How do you value warrants and convertible notes?

Depending on the instrument’s terms, using Black-Scholes or a binomial lattice model, with inputs and assumptions documented so your auditor can evaluate them. Instruments with reset provisions, down-round protection or multiple settlement paths usually require a lattice.

We are pre-revenue and pre-audit. Too early?

Usually it is exactly the right time. Fixing basis-of-accounting and equity-instrument issues before an audit starts is materially cheaper than fixing them inside one.

Do you work with our securities counsel?

Yes, and it makes the process faster. Counsel drives the registration statement; we produce the financial sections that go into it.

Tell us what you are filing

What you are filing and when. The first thing we will settle is which role we can take with your company — accountant or auditor.

Book a call with the partner

713-931-3080 · admin@jvcpa.com
820 Gessner Road, Suite 300, Houston, Texas 77024