Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 218

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 218
---
 at least once every five years in accordance with International Standards for the Professional Practice of Internal Auditing; and

◦ Ensuring proper tone at the top which mandates and supports clear, regular, and unambiguous reporting to senior management and the Audit Committee, which in turn will increase transparency and oversight with respect to audit findings, remediation state and control effectiveness metrics.

• On November 16, 2025, Lugano and certain of its subsidiaries filed voluntary Chapter 11 petitions under the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. As a result of Lugano’s entry into Chapter 11 proceedings, effective November 17, 2025, Lugano and its subsidiaries were deconsolidated from the Company’s financial statements pursuant to Accounting Standards Codification 810-10-40. Accordingly, from that date Lugano is outside the Company’s internal control environment and is not within the scope of the Company's ongoing remediation for internal control over financial reporting. Prior to Lugano’s entry into Chapter 11 proceedings, the Company planned remediation actions for Lugano which included, among others:

◦ Assessing the skillset of Lugano employees, including within the Lugano finance and accounting functions, to evaluate necessary organizational changes;

◦ Evaluating roles and responsibilities / job functions across Lugano’s finance, accounting, and operations to ensure there is sufficient and adequate separation over authorization, custody of assets, recordkeeping, and reconciliation controls and responsibilities;

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◦ Strengthening monitoring controls with the assistance of the Lugano finance function that considers financial and accounting metrics, including cash flow results, as well as operational results and metrics; and

◦ Strengthening internal controls over inventory to ensure accurate recording and safeguarding of assets. Enhancing procedures to ensure the existence and value of, and title to, inventory.]

Changes in Internal Control over Financial Reporting

Other than as outlined above, there were no changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the Company's fourth fiscal quarter to which this Form 10-K/A relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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## ITEM 9B. OTHER INFORMATION

#### Trading Plans
During the three months ended December 31, 2024