Company: GFS
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001709048-25-000024
Chunk: 8

Company: GLOBALFOUNDRIES Inc.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 7
Chunk 8
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 2022 and 2023, the Company received two notices of failure to satisfy the economic substance test for the 2020 financial year, each with a penalty of CI$10,000 (or US$12,500). During 2025, the Company received a notice of failure to satisfy the economic substance test for the 2021 financial year, and a further penalty of CI$10,000 (or US$12,500). The Company has paid the foregoing monetary penalties and taken appropriate remedial steps in 2022 and 2023 to satisfy the economic substance test.

Risks Related to Operating as a Public Company

Our management has identified material weaknesses in our ICFR and has concluded that our ICFR was not effective as of December 31, 2024, which may have a material adverse effect on our results of operations and financial condition for future periods.

Ensuring that we have adequate internal financial and accounting controls and procedures in place so that we can produce accurate financial statements on a timely basis is a costly and time-consuming effort that needs to be re-evaluated frequently. Our ICFR is a process meant to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles. We regularly undertake the process of documenting, reviewing and improving our internal controls and procedures for compliance with Section 404 of the Sarbanes-Oxley Act of 2002 (“ Sarbanes-Oxley Act”), which requires annual management assessment of the effectiveness of our ICFR. Over the course of 2024, we completed the testing of our internal controls to comprehensively evaluate our controls.

For the fiscal year ended December 31, 2024, our management identified material weaknesses in our ICFR. For fu rther information on the material weaknesses identified by our management in 2024, see “Item 15 - Controls and Procedures.” In light of the identified material weaknesses, our management concluded that our ICFR was not effective as of December 31, 2024. Although we are developing and implementing several measures to remedy these material weaknesses, there is no assurance that the actions we are taking or plan to take will give us the results we expect, that our remediation plan will be effective, or that our remediation plan will be completed on the timelines that we expect.

In addition to the foregoing, during 2024 we undertook efforts to remediate the material weaknesses over ICFR identified for the fiscal year ended December