Company: CRESW
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001654954-25-012195
Chunk: 398

Company: CRESUD INC
Filing Date: 2025-10-24
Form: 20-F
Item: Item 15
Chunk 398
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 future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of the Company’s internal control over financial reporting as of June 30, 2025. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013).

As a result of this evaluation, our management concluded that we did not design and maintain effective controls over capital increases resulting from the exercise of the warrants issued by us since our internal controls over financial reporting did not account for the impact of inflation accounting over the exercise of the warrants. This control deficiency led to material errors in the inflation adjustment of the share premium from the exercise of the warrants which required the restatement of our consolidated financial statements as of June 30, 2024 and for the years ended June 30, 2024 and 2023. Accordingly, our management has determined that this control deficiency constitutes a material weakness. 

As a result of the material weakness in internal control over financial reporting described above, our management has concluded that we did not maintain effective internal control over financial reporting as of June 30, 2025. 

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.

Our management has conducted additional analysis and concluded that, despite the material weakness described above, our Audited Consolidated Financial Statements included elsewhere in this Annual Report fairly present, in all material respects, our financial position, results of operations, and cash flows as of the dates and for the periods presented.

An independent registered public accounting firm, Price Waterhouse & Co. S.R.L., has audited the effectiveness of our internal control over financial reporting as of June 30, 2025, as stated in their report which is included in this Annual Report.

In response to the deficiency described above, our management, with the oversight of our Audit Committee, evaluated our policies and procedures related to capital increases derived from the exercise of the warrants, designed and intends to implement adequate internal controls to ensure that capital increases derived from the exercise of the warrants are properly reviewed, reconciled, and recorded in our financial statements. These enhanced controls include periodic reviews and reconciliations performed by the