Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 233

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 233
---
 a critical audit matter is that the determination of the fair value of the asset required management to make significant estimates and assumptions

<div align='center'>F-5</div>

related to forecasted revenues and operating margins as well as the discount rate used. This required a high degree of auditor judgment and an increased extent of effort, including the involvement of professionals with specialized skill and knowledge, in auditing these assumptions made by management.

Our audit procedures related to the valuation of the tradename included the following, among others:

• We tested the design and operating effectiveness of controls relating to the determination of the tradename’s fair value, including controls over the development of revenue growth rates, operating margins and discount rate assumptions, as well as the controls around the appropriateness of the valuation model used.

• We evaluated the valuation methodology and discount rate utilized by management with the assistance of our valuation professionals with specialized skills and knowledge.

• We tested the forecasted revenues and operating margins by assessing the reasonableness of management’s forecasts compared to historical results and forecasted market and industry trends.

/s/ GRANT THORNTON LLP

We have served as the Company’s auditor since 2005.

New York, New York

December 8, 2025

<div align='center'>F-6</div>

| COMPASS DIVERSIFIED HOLDINGS                                                                                                                                                                                                                     
 CONSOLIDATED BALANCE SHEETS                                                                                                                                                                                                                      
 (in thousands)                                                                                                                                                                                                                                   |     | December 31, 
 2024         |            |     | December 31, 
 2023         |           |     | December 31, 
 2022         |           |
|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----|:-------------|-----------:|:----|:-------------|----------:|:----|:-------------|----------:|
|                                                                                                                                                                                                                                                  |     | -As Restated |            |     | -As Restated |           |     | -As Restated |           |
| Assets                                                                                                                                                                                                                                           |     |              |            |     |              |           |     |              |           |
| Current assets:                                                                                                                                                                                                                                  |     |              |            |     |              |           |     |              |           |
| Cash and cash equivalents                                                                                                                                                                                                                        |     | $            |     59,659 |     | $            |   446,616 |     | $            |    52,675 |
| Accounts receivable, net                                                                                                                                                                                                                         |     |              |    207,172 |