What changed in this filing

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Item 4. Controls and Procedures

2021-05-24 compared with 2020-11-12 · 33 added, 43 removed, 13 unchanged (85% of the section changed)

2 unchanged sentences

Our management is responsible

for establishing and maintaining disclosure controls and procedures that are designed to ensure that information required to be

disclosed in our reports under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized

and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the “SEC”),

and that such 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 based closely on the definition of “disclosure

controls and procedures”

for establishing and maintaining disclosure controls and procedures that are designed to ensure that information required to be disclosed

in our reports under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported

within the time periods specified in the rules and forms of the Securities and Exchange Commission (the “SEC”), and that such

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 based closely on the definition of “disclosure controls and procedures”

in Rule 15d-15(e) under the Exchange Act.

In designing and evaluating the disclosure controls and

procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only

reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment

in evaluating the cost-benefit relationship of possible controls and procedures.

In designing and evaluating the disclosure controls and procedures, management recognized that

any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired

control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible

controls and procedures.

During the period covered

by this filing, we conducted 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

Based upon the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30,

2020, we do not yet have sufficient controls and procedures to ensure that all the information required to be disclosed in our

Exchange Act reports was recorded, processed, summarized and reported on a timely basis.

The Company intends

to improve its internal control over financial reporting and improve its disclosure controls and procedures.

by this filing, we conducted 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.

upon the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2021, we do not yet have sufficient

controls and procedures to ensure that all the information required to be disclosed in our Exchange Act reports was recorded, processed,

summarized and reported on a timely basis.

The Company intends to

improve its internal control over financial reporting and improve its disclosure controls and procedures.

As of December 31, 2020,

2019, we had identified the following material weaknesses, of which the items below still exist as of September 30, 2020 and through

the date of this report:

Because of the size of the Company and the Company’s limited administrative staff, controls related to the segregation of certain duties had not yet been developed or instituted by the Company as of December 31, 2019.

During the three months ended March 31, 2020, we hired an accounting staff member who is now providing segregation of duties procedures pertaining to cash payments, payroll, general ledger procedures and banking transactions.

We expect to have our internal control procedures documented by the end of December 2020.

In addition, the Company currently does not have automated manufacturing or purchasing systems in place to track inventory purchases, transactions, bills of material, part numbers, product costing, labor or a perpetual inventory system.

we had identified the following material weaknesses, of which the items below still exist as of March 31, 2021 and

through the date of this report:

The Company currently does not have automated manufacturing or purchasing systems in place to track inventory purchases, transactions, bills of material, part numbers, product costing, labor or a perpetual inventory system.

The Company performs manual processes during the year to track and control inventory transactions, apply labor and overheads to inventory and to perform a wall to wall physical inventory at the end of the year to confirm the ending inventory balance and valuation.

2 unchanged sentences

This will avoid over-purchasing or shortages of inventory.

Since these controls

have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.

We plan to implement a manufacturing and purchasing system during fiscal 2021.

these controls have a pervasive effect across the organization, management has determined that these circumstances constitute a material

Corrective Action and Changes in Internal Control Over Financial

During the three months

ended September 30.

2020, we continued to document and refine our control procedures to ensure that we have identified any disclosure

weaknesses related to segregation of duties so that there are checks and balances with regard to cash disbursement, payroll, banking

transactions and general ledger transactions.

In addition, we have been improving our manual processes for managing our purchasing

and inventory activities.

In the same period, we have hired a Director of Operations who is implementing procedures that will track

and control our transactions in manufacturing, including purchasing, production labor, and inventory transactions.

We also hired

a Director of Engineering to support this process.

We expect to evaluate and choose a new Enterprise Resource Planning (ERP) system

by the end of 2020 and implement it in early 2021.

These additional implementations will provide significantly improved disclosure

During the three months ended

March 31, 2021, we have been reviewing several Enterprise Resource Planning (ERP) software packages to determine which will be the most

effective based on our manufacturing environment and operating processes.

We have narrowed our selection down to two choices.

looking at our current manual operating processes to determine the best structure we want to put in place once we begin to design the

new ERP, as well as access controls to streamline and strengthen our approval

processes and control environment.

We plan to select the new ERP in fiscal Q3 2021.

OTHER INFORMATION

Legal Proceedings

The Company may be

involved in legal actions and claims arising in the ordinary course of business from time to time.

As of the date of this report,

there are no ongoing or pending legal claims or proceedings of which management is aware.

The Company may be involved

in legal actions and claims arising in the ordinary course of business from time to time.

As of the date of this report, there are no

ongoing or pending legal claims or proceedings of which management is aware.

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-Q

Item 4. Controls and Procedures