Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 216

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 216
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 level as of December 31, 2024. Management subsequently concluded that the material weaknesses described above existed as of December 31, 2024. As a result, management determined that the Company did not maintain effective internal controls over financial reporting as of December 31, 2024. Accordingly, management has restated its report on internal controls over financial reporting. Notwithstanding the material weaknesses in internal control over financial reporting, our management, including our Chief Executive Officer and Chief Financial Officer, have concluded that our consolidated financial statements present fairly, in all material respects, our financial position, results of our operations and our cash flows for the periods presented in this Annual Report on Form 10-K/A, in conformity with U.S. GAAP. There can be no assurance that these material weaknesses will not result in a misstatement to the annual or interim consolidated financial statements for future periods that would not be prevented or detected.

The Company's independent registered public accounting firm, Grant Thornton LLP, who audited the consolidated financial statements included in this Annual Report on Form 10-K/A, issued an adverse opinion on the effectiveness of the Company’s internal control over financial reporting, as stated in their Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting contained on page F-2 of this Form 10-K/A which is incorporated herein by reference.

The audited financial statements of the Company included in this Annual Report on Form 10-K/A include the results of its subsidiaries from their respective dates of acquisition. Management's assessment of internal control over financial reporting for the year ended December 31, 2024 does not include an assessment of The Honey Pot Co., a majority owned subsidiary of the Company that was acquired during the year ended December 31, 2024. The financial statements of The Honey Pot Co. reflect total assets and net revenues constituting 12% and 6%, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2024. Refer to " Note D - Acquisition of Business " included in the "Notes to the Consolidated Financial Statements" in this Form 10-K/A, for a description of the acquisition of The Honey Pot Co.

Remediation Plan and Status

The Company is implementing enhancements to its internal controls to remediate the identified material weaknesses in its internal controls over financial reporting related to the Company's governance and accounting practices. While the Company believes that these efforts will improve its internal control over financial reporting, the Company will not be able to conclude whether the