Item 4. Controls and Procedures
ITEM 4. CONTROLS AND PROCEDURES.
Disclosure Controls and Procedures
We maintain disclosure controls and procedures
designed to provide reasonable assurance that material information required to be disclosed by us in the reports we file or submit under
the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s
rules and forms, and that the information is accumulated and communicated to our management, including our Chief Executive Officer and
Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. We performed an evaluation, under the
supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness
of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report.
Based on their evaluation, our management, including
our Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were not effective as of
March 31, 2021.
We do not expect that our disclosure controls
and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and
operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met.
Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits
must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation
of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances
of fraud, if any. The design of disclosure controls and procedures is also based partly on certain assumptions about the likelihood of
future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
Management Plan to Remediate Material Weaknesses
We expect to implement the following measures
in 2021 to continue to remediate the material weaknesses identified:
●
To continue providing applicable training for our financial and accounting staff to enhance their understanding of U.S. GAAP and internal control over financial reporting.
●
To expand involvement of qualified external consultants to supervise and review our financial reporting process.
Changes in Internal Control Over Financial Reporting
There have been no changes in our internal controls
over financial reporting that occurred during our last fiscal quarter to which this Quarterly Report on Form 10-Q relates that have materially
affected, or are reasonably likely to materially affect our internal controls over financial reporting.
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PART II. - OTHER INFORMATION
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