What changed in this filing

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Item 9A. Controls and Procedures

2026-03-16 compared with 2025-03-31 · 119 added, 33 removed, 86 unchanged (64% of the section changed)

Controls and Procedures

the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial

Officer, the Company has evaluated the effectiveness of its disclosure controls and procedures as required by Exchange Act Rule 13a-15(b)

as of the end of the period covered by this report.

Based on that evaluation, the Chief Executive Officer and Chief Financial Officer

have concluded that these disclosure controls and procedures are effective.

Management’s annual report on internal control over financial reporting.

is responsible for establishing and maintaining adequate internal control over financial reporting.

The Company’s internal control

over financial reporting is a process that is designed to provide reasonable assurance regarding the reliability of financial reporting

and the preparation of financial statements for external purposes in accordance with GAAP, and includes those policies and procedures

to the maintenance of records that, in reasonable detail, accurately and fairly reflect the

transactions and dispositions of assets of the Company,

reasonable assurance that transactions are recorded as necessary to permit preparation of

financial statements in accordance with GAAP, and that receipts and expenditures are being

made only in accordance with authorizations of management and the Company’s Board of

Directors, and provide reasonable assurance regarding prevention or timely detection of unauthorized

acquisition, use, or disposition of the Company’s assets that could have a material

effect on the financial statements.

of Disclosure Controls and Procedures

Company maintains disclosure controls and procedures as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act.

The Company has

designed these controls and procedures to ensure that information the Company is required to disclose in reports filed under the Exchange

Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and is accumulated

and communicated to Company management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”)

as appropriate, to allow timely decisions regarding required disclosure.

the supervision and with the participation of the Company’s management, including the CEO and CFO, the Company has evaluated the

effectiveness of its disclosure controls and procedures as required by Exchange Act as of the end of the period covered by this Annual

Report on Form 10-K.

Based on that evaluation, the CEO and CFO have concluded that its disclosure controls and procedures were not effective

as of December 31, 2025, because of the material weakness in the Company’s internal control over financial reporting as described

Annual Report on Internal Control Over Financial Reporting

is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) and 15d-15(f)

under the Exchange Act.

The Company’s internal control over financial reporting is a process that is designed to provide reasonable,

but not absolute, assurance regarding the reliability of financial reporting and the preparation of financial statements for external

purposes in accordance with GAAP, and includes those policies and procedures that:

to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets

of the Company,

reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with

GAAP, and that receipts and expenditures are being made only in accordance with authorizations of management and the Company’s

Board of Directors, and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or

disposition of the Company’s assets that could have a material effect on the financial statements.

of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

3 unchanged sentences

performed an assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025

based on the framework in “Internal Control-Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations

based on the criteria in the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations

of the Treadway Commission.

2 unchanged sentences

Based on that assessment management believes that as of December 31, 2025, the Company’s

internal control over financial reporting was effective.

annual report on internal control over financial reporting does not include an attestation report of the Company’s registered public

accounting firm regarding internal control over financial reporting.

Management’s report was not subject to attestation by the

Company’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company

to provide only management’s report in this annual report.

Changes in internal control over financial reporting.

was no change in the Company’s internal control over financial reporting that occurred in the fourth quarter 2024 that has materially

affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

internal control over financial reporting was not effective.

Company identified a material weakness related to information technology general controls (“ITGCs”) because the Company did

not design and maintain effective ITGCs for information systems that are relevant to the preparation of the financial statements.

Specifically,

deficiencies were identified related to user access controls and program change management controls for financial systems.

These deficiencies

resulted in related control deficiencies with respect to information generated from the impacted systems and used in the performance

of controls relevant to the preparation of the financial statements.

The material weakness related to the ITGCs did not result in adjustments

to the financial statements for the year ended December 31, 2025.

Company’s registered public accounting firm has issued its report on its audit of the effectiveness of internal control over financial

reporting, which is included herein and set forth below.

in Internal Control Over Financial Reporting

Company is taking actions to remediate the material weakness relating to its internal control over financial reporting.

Other than the

changes to the Company’s internal control over financial reporting described in “Remediation Plan and Status” below,

there were no changes to the Company’s internal control over financial reporting as defined by Rule 13a-15(f) under the Exchange

Act during the quarter ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s

internal control over financial reporting.

Plan and Status

Company is committed to remediating its material weaknesses as promptly as possible.

Management is in the process of implementing its

remediation plan.

Management will test the ongoing operating effectiveness of the new and existing controls in future periods.

weaknesses cannot be considered completely remediated until the applicable controls have operated for a sufficient period of time and

management has concluded, through testing, that these controls are operating effectively.

Management cannot assure you that the measures

taken to date, and are continuing to implement, will be sufficient to remediate the material weakness identified or avoid potential future

material weaknesses.

OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

the shareholders and the Board of Directors of Security National Financial Corporation

on Internal Control over Financial Reporting

have audited the internal control over financial reporting of Security National Financial Corporation and subsidiaries (the

“Company”) as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework

(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, because of the effect

of the material weakness identified below on the achievement of the objectives of the control criteria, the Company has not

maintained effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal

Control — Integrated Framework (2013) issued by COSO.

have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated

financial statements as of and for the year ended December 31, 2025, of the Company and our report dated March 16, 2026, expressed an

unqualified opinion on those financial statements and included an explanatory paragraph regarding the Company’s adoption of a new

accounting standard.

Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment

of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal

Control over Financial Reporting.

Our responsibility is to express an opinion on the Company’s internal control over financial

reporting based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect

to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange

Commission and the PCAOB.

conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain

reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists,

testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other

procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion.

and Limitations of Internal Control over Financial Reporting

company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability

of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting

A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the

maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in

accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance

with authorizations of management and directors of the company;

and (3) provide reasonable assurance regarding prevention or timely detection

of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Also, projections of

any evaluation of effectiveness to 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.

material weakness is a deficiency, or a 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.

The following material weakness has been identified and included in management’s assessment:

Company did not design and maintain effective information technology general controls (“ITGCs”) for information systems

that are relevant to the preparation of the financial statements.

Specifically, deficiencies were identified related to user access

controls and program change management controls for financial systems.

These deficiencies resulted in related control deficiencies

with respect to information generated from the impacted systems and used in the performance of controls relevant to the preparation

of the financial statements.

material weakness was considered in determining the nature, timing, and extent of audit tests applied in our audit of the consolidated

financial statements as of and for the year ended December 31, 2025, of the Company, and this report does not affect our report on such

financial statements.

/s/ Deloitte & Touche LLP

Lake City, UT

Other Information

18 unchanged sentences

Exhibits, Financial Statement Schedules

Financial Statements

“Index to Consolidated Financial Statements” under Item 8 above.

Financial Statement Schedules

Statement Schedules

schedules to the consolidated financial statements required by Article 7 of Regulation S-X are not required under the related instructions

or are inapplicable and therefore have been omitted.

(a)(3) Exhibits

following Exhibits are filed herewith pursuant to Rule 601 of Regulation S-K or are incorporated by reference to previous filings.

4 unchanged sentences

Preferred Stock Certificate and Certificate of Designation of Preferred Stock (1)

Description of Securities

Stock Ownership Plan, as amended and restated (ESOP) and Trust Agreement (1)

1 unchanged sentence

Amended and Restated 2014 Director Stock Option Plan (6)

Agreement and Extension with Scott M.

Employment Agreement and Extension with Scott M.

Stock Repurchase Plan (4)

25 unchanged sentences

by reference from Report on Form 10-Q, as filed on August 14, 2020

Incorporated by reference from Report on Form 10-K, as filed on March 29, 2024

by reference from Report on Form 10-K, as filed on March 29, 2024

by reference from Report on Form 10-K, as filed on March 31, 2025

Form 10-K Summary

16 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures