Company: RMIX
Filing Date: 2025-11-12
Form Type: S-4
Source: 0001104659-25-110488
Chunk: 149

Company: Suncrete, Inc.
Filing Date: 2025-11-12
Form: S-4
Chunk 149
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 report required to be filed with the SEC or (ii) the date PubCo is no longer an emerging growth company. At such time, PubCo’s independent registered public accounting firm may issue a report that is adverse in the event it is not satisfied with the level at which its controls are documented, designed or operating.

As a private company, Suncrete does not currently have an internal audit function and has not yet fully implemented the internal control structure required of a public company. To comply with the requirements of being a public company, Suncrete has undertaken various actions and will need to take additional actions,

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such as implementing and documenting numerous internal controls and procedures and hiring additional accounting and internal audit staff or consultants.

In connection with the audit of its consolidated financial statements for the year ended December 31, 2024, Suncrete identified material weaknesses in its internal control over financial reporting. These material weaknesses relate to the design and operation of certain key controls within the accounting and financial reporting process. In addition, the Suncrete previously restated certain prior-period financial statements to correct a reclassification error between cost of goods sold and selling, general and administrative expenses. The restatement had no impact on revenue, net income, or other key financial metrics.

Suncrete has begun implementing a remediation plan to address these material weaknesses and continues to make progress toward strengthening its internal control environment. Suncrete has hired additional accounting, finance, and information-technology personnel and expects to continue expanding these teams as remediation efforts progress. Suncrete also continues to actively engage outside consultants and advisors to assist with the design, implementation, and documentation of controls. In addition, management is enhancing IT access, security, and change-management procedures, formalizing accounting policies, strengthening review and approval processes, and evaluating longer-term system and personnel enhancements to support sustainable compliance.

Testing, implementing, and maintaining these controls may divert PubCo’s management’s attention from other matters important to the operation of its business. Until the identified material weaknesses are fully remediated, PubCo’s internal control over financial reporting will not be effective. If PubCo is unable to remediate these material weaknesses in a timely manner or identifies additional weaknesses in the future, it may be unable to produce reliable financial information, investors may lose confidence in the accuracy of PubCo’s financial reporting, and the market price of PubCo Class A Common Stock could be negatively affected. PubCo could also become subject to investigations by the SEC, the stock exchange on which its securities will