Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 5

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 5
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 rate fluctuations;

• the potential for conflicts of interest in acquisition opportunities;

• the possibility that we may be deemed to be an investment company under the Investment Company Act of 1940, as amended, if we cease to control and operate our businesses in the future;

• the dependence of some of our businesses on a limited number of customers for a significant percentage of revenue;

• the lack of long-term customer contracts;

• changes to tariffs and import/export regulations;

• the impact of the Trust’s tax reclassification;

• future changes to tax laws and the potential for the Trust to be taxed at rates higher than expected or for the Trust to fail to realize the anticipated benefits of its tax election;

• the discretionary and non-cumulative nature of distributions on Series A Preferred Shares;

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• the subordination of our Series A, Series B, and Series C Preferred Shares to our existing and future indebtedness;

• the potential for members of management to allocate their time to the operations of other businesses;

• the potential for our Manager, its affiliates, and members of the Company’s management team to engage in activities that compete with us or our businesses;

• the wide latitude that the Manager possesses in determining whether an acquisition or disposition opportunity does or does not meet the Company’s criteria;

• the difficulty in removing our Manager for poor performance;

• the ability of our Manager to resign on 180 days’ notice and the possibility that we may be unable to find a suitable replacement in a timely fashion;

• our requirement to pay our Manager the base management fee regardless of our performance;

• uncertainty with respect to determining the amount of the management fee that will be paid over time;

• uncertainty with respect to determining the amount of profit allocation that will be paid over time;

• payment of the management fee, fees under offsetting management services agreements, and profit allocation may significantly reduce the amount of earnings and cash available for shareholder distributions;

• the Manager’s influence and ability to increase its fees;

• the possibility that our management fees or profit allocation may induce our Manager to make suboptimal operations decisions;

• the obligation to pay management fees and profit allocation may cause the Company to liquidate assets or incur debt;

• potential material environmental liabilities arising from a subsidiary’s operations and the prior operations of predecessor companies;

• the potential for products liability and products safety claims against some of our businesses;

• cybersecurity-related risks, including system failures, data breaches, and the unauthorized access to and use of our and our customers’ confidential information;

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