Company: NGVC
Filing Date: 2025-12-11
Form Type: 10-K
Source: 0001437749-25-037556
Chunk: 737

Company: Natural Grocers by Vitamin Cottage, Inc.
Filing Date: 2025-12-11
Form: 10-K
Item: Item 8
Chunk 737
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 assets, and finance lease assets, as a critical audit matter. A high degree of auditor judgment was required to evaluate the Company’s assessment of whether there were indicators of impairment, including significant changes in current performance combined with a history of losses and a projection of continuing losses, or a decision to close or relocate a store.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s long-lived asset impairment process, including a control related to the Company’s assessment of impairment triggering events. We assessed the Company’s identification and evaluation of potential impairment triggering events by:

• inspecting operating results and cash flows by store to identify stores with current period losses

• comparing actual operating and cash flow results to expected results, industry and economic trends, and to the net book value of store assets for a selection of stores

• evaluating management’s ability to effectively forecast sales and cash flow by comparing actual results to management’s historical forecasts for a selection of stores

• reading board of directors meeting minutes and available industry information

• inquiring with management regarding the intent to continue to operate stores in a manner that is consistent with projections.

/s/ KPMG LLP

We have served as the Company’s auditor since 2010.

Denver, Colorado
December 11, 2025

57

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors
Natural Grocers by Vitamin Cottage, Inc.:

Opinion on Internal Control Over Financial Reporting

We have audited Natural Grocers by Vitamin Cottage, Inc. and subsidiaries' (the Company) internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 30, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of September 30, 2025 and 2024, the related consolidated statements of income, cash flows, and changes in stockholders’ equity for each of the years in the three