Company: EVCM
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001853145-25-000009
Chunk: 4

Company: EverCommerce Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 9A
Chunk 4
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 management’s assessment of the effectiveness of internal control over financial reporting includes all of our Company’s consolidated operations.

In connection with the preparation of the financial statements for this Annual Report on Form 10-K, we identified a material weakness, as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023, that has not been remediated as of December 31, 2024 related to the lack of properly designed controls over certain of our order to cash revenue accounting processes. Specifically, adequate controls are not in place primarily as a result of (a) the lack of full system integration for certain of our order to cash systems and (b) control deficiencies within the manual controls designed to mitigate that risk.

Our independent registered public accounting firm will not be required to opine on the effectiveness of our internal control over financial reporting pursuant to Section 404 until we are no longer an “emerging growth company” as defined in the JOBS Act.

Remediation Efforts to Address Material Weakness

While progress has been made to remediate the material weakness, as of December 31, 2024, we are still in the process of remediating the aforementioned material weakness and will continue our efforts to do so until such remediation is complete. While we have taken steps to improve our internal control over financial reporting and have remediated our previously identified material weakness related to certain information technology general controls (“ITGCs”), we maintain a disaggregated information technology infrastructure due to a series of historical business combinations. As a result, we have determined that certain of our systems have not been fully integrated, including within certain revenue cycles of customer order to billing, increasing the number of manual controls necessary for our control environment.

We expect to implement remediation plans for the aforementioned material weakness which may include the following:

•Enhanced system integration within customer order to billing processes within relevant product offerings;

•Investment in information technology systems and resourcing for the integrations noted above; 

•Identification and implementation of an enhanced system of manual controls while system integrations are ongoing; and

•Additional training and resourcing associated with manual controls through the enterprise surrounding customer order through billing.

We will monitor the effectiveness of our remediation plans and will make the changes management determines to be appropriate.   While we will endeavor to remediate our material weaknesses as soon as practicable, the program of remediation effort may extend beyond the year ending December 31, 2025.

II-53

Changes in Internal Control Over Financial Reporting