16 unchanged sentences
Officer and Chief Financial Officer, of the effectiveness of the design and operation of our internal controls over financial reporting.
−Removed: Based upon the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2022, we do not yet have
−Removed: sufficient internal controls over financial reporting and procedures to ensure that all the information required to be disclosed in our
−Removed: Exchange Act reports was recorded, processed, summarized and reported on a timely basis.
+Added: Based upon the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2022, we do not
+Added: yet have sufficient internal controls over financial reporting and procedures to ensure that all the information required to be disclosed
+Added: in our Exchange Act reports was recorded, processed, summarized and reported on a timely basis.
We identified the following
1 unchanged sentence
The Company currently does not have sufficient controls in place to ensure that all inventory is appropriately tracked and recorded on a timely basis, given the lack of an automated tracking system and the manual nature of its current processes and controls surrounding inventory.
−Removed: The Company performs
−Removed: manual processes during the year to track and control inventory transactions, apply labor and overheads to inventory and to perform
−Removed: a wall-to-wall physical inventory at the end of the year to confirm the ending inventory balance and valuation.
−Removed: processes provide good results in determining inventory and cost of sales transactions, as we grow, it has become a very
−Removed: time-consuming process and could impact our ability to submit timely reporting.
−Removed: A manufacturing system will also provide better
−Removed: management tools to analyze and plan production.
+Added: 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.
+Added: While these processes provide good results in determining inventory and cost of sales transactions, as we grow, it has become a very time-consuming process and could impact our ability to submit timely reporting.
+Added: A manufacturing system will also provide better management tools to analyze and plan production.
This will avoid over-purchasing or shortages of inventory.
−Removed: We plan to implement a
−Removed: manufacturing and purchasing system in early fiscal 2023.
−Removed: In addition, we identified the following during the six months
−Removed: ended June 30, 2022:
+Added: We plan to implement a manufacturing and purchasing system in early fiscal 2023.
+Added: In addition, we identified the following material weakness
+Added: at March 31, 2022:
With regard to a business combination that was completed during the quarter ended March 31, 2022, we identified that the controls over the review of the business combination were not designed effectively such that a material error in the calculation of the purchase price was not detected in a timely manner.
2 unchanged sentences
based on the criteria established in the “Internal Integrated Framework” issued by COSO in 2013 and as a result, we did not
−Removed: maintain effective internal control over financial reporting as of June 30, 2022.
+Added: maintain effective internal control over financial reporting as of September 30, 2022.
Changes in Internal Control Over Financial Reporting
During the three months ended
−Removed: June 30, 2022, we continued to implement stronger processes related to ordering, counting, warehousing, valuing and transacting our inventory.
+Added: September 30, 2022, we continued to implement stronger processes related to ordering, counting, warehousing, valuing and transacting our
We are evaluating enterprise resource planning (ERP) systems to replace our existing QuickBooks system.
−Removed: In addition, we evaluated the
−Removed: internal controls of All Cell and rolled out processes and procedures to this new acquisition which was acquired during the six months
−Removed: ended June 30, 2022.
−Removed: During the quarter ended June
−Removed: 30, 2022, the Company implemented a review control over third-party valuation reports, which include formalized review procedures and
−Removed: enhanced communications with third-party experts which we believe will address the material weakness identified in the quarter ended March
+Added: In addition, we evaluated
+Added: the internal controls of All Cell and rolled out processes and procedures to this new acquisition which was acquired during the nine months
+Added: ended September 30, 2022.
+Added: During the quarters ended
+Added: June 30 and September 30, 2022, the Company implemented a review control over third-party valuation reports, which include formalized
+Added: review procedures and enhanced communications with third-party experts.
+Added: We believe that these controls will address the material weakness
+Added: identified in the quarter ended March 31, 2022.
OTHER INFORMATION
5 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.