Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 254

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 254
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 determined that certain cash recorded as reduction of accounts receivable or purchases of inventory actually represented unrecorded financing arrangements made with third parties to purportedly jointly invest with Lugano in the purchase of a specified jewelry piece. These arrangements represent debt that has been recorded on the Company's consolidated balance sheets, and an amount of accrued interest associated with the arrangements has also been recorded. Refer toNote I - Debtfor further description of the financing arrangements. |
| ADJ 6                       |     | Noncontrolling interest - the correction of the misstatements resulted in a decrease in the balance of noncontrolling interest at Lugano, and reduced the noncontrolling income that previously had been recorded related to Lugano.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

<div align='center'>F-22</div>

### COMPASS DIVERSIFIED HOLDINGS

### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
| Consolidated Statement of Operations |     |                                                                                                                                                                                                                                                              |
| ADJ 7                                |     | Net revenues - net revenues at Lugano were overstated in each of the periods presented as a result of the recording of invalid revenue transactions or the misrepresentation of funds received as revenue.                                                   |
| ADJ 8                                |     | Cost of revenues - cost of revenues at Lugano was overstated in each of the periods presented as a result of the recording of the cost of revenues associated with invalid revenue transactions and the misapplication of funds paid as inventory purchases. |
| ADJ 9                                |     | Interest expense, net - interest expense associated with the Lugano financing arrangements described above have been recorded in the consolidated statement of operations in each of the periods presented.                                                  |
| ADJ 10                               |     | Other income (expense), net - reflects the expense recognized at Lugano related to losses resulting fromthe accounting for the transactions associated with the Lugano financing arrangements.                                                               |
| ADJ 11                               |     | Income tax provision (benefit) - the income tax provision (benefit) at Lugano has been recalculated in each of the periods presented as a result of the effect of the aforementioned adjustments to the consolidated statement of operations.                |

The table below presents a summary of the impact of the cumulative effect of the misstatements on the opening balance of accumulated deficit and non-controlling interest as of the first period presented:

| (in thousands)                         |     | Accumulated 
 Deficit     |          |     | Non-        
 Controlling 
 Interest    |          |
|:---------------------------------------|