Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 231

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 231
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 to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

<div align='center'>F-4</div>

#### Critical audit matters
The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing a separate opinion on the critical audit matters or on the accounts or disclosures to which they relate.

Investigation Results of Lugano Holding, Inc .

As described further in Note B to the consolidated financial statements, in April 2025, the Audit Committee of the Board of Directors commenced an investigation (the “Investigation”) into the financing, accounting, and inventory practices of Lugano Holding, Inc. (“Lugano”), a subsidiary of the Company. As a result of the Investigation, the Company concluded that its previously issued consolidated financial statements as of and for the years ended December 31, 2024, 2023, and 2022 were materially inaccurate and required restatement. The restatement related to errors at Lugano primarily related to its accounting for revenue, inventory, and subsidiary financing arrangements. We identified the Investigation and its related results as a critical audit matter.

The principal considerations for our determination that the Investigation is a critical audit matter are the high degree of auditor judgment, subjectivity, and an increased extent of audit effort, including the use of professionals with specialized