What is the significance of the auditor being located in San Antonio, Texas for C12 Group?

According to the 2025 FDD, the significance of the auditor being located in San Antonio, Texas, for C12 Group is primarily due to the company's business office also being located in San Antonio, Texas. The independent auditor's reports included in the FDD are addressed to the Board of Directors of The C12 Group, LLC, San Antonio, Texas. This indicates that the auditor is geographically close to C12 Group's headquarters, which can facilitate easier communication and oversight.

Specifically, the FDD includes independent auditor's reports from both ADKF, P.C. and Schriver, Carmona & Company, PLLC, both of which are located in San Antonio, Texas. These firms audited the financial statements of C12 Group for different periods. ADKF, P.C. issued a report dated March 25, 2024, while Schriver, Carmona & Company, PLLC issued a report dated March 15, 2023. The presence of local auditors suggests a close working relationship and potentially a better understanding of C12 Group's business operations.

Furthermore, C12 Group was converted to a Texas limited liability company in 2016 and relocated to San Antonio, Texas, from North Carolina. This move likely solidified the importance of having local auditors who are familiar with Texas regulations and business practices. The auditor's familiarity with the local business environment can be beneficial for ensuring accurate and compliant financial reporting.