What changed in this filing

/stocks — the workspaceLOADING

Item 4. Controls and Procedures

2023-08-14 compared with 2023-05-15 · 17 added, 19 removed, 32 unchanged (53% of the section changed)

15 unchanged sentences

Officer and Chief Financial Officer, of the effectiveness of the design and operation of our internal controls over financial reporting.

Based upon the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2023, we do not have

Based upon the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2023, we do not have

sufficient internal controls over financial reporting and procedures to ensure that all the information required to be disclosed in our

2 unchanged sentences

material weakness which existed as of December 31, 2022:

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.

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.

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.

manual controls improved significantly in 2022 at our San Diego location, we determined we had similar issues with manufacturing systems

at our Chicago facility that was added in 2022 as a result of the All Cell acquisition.

A manufacturing system will provide automated

processes, better controls, and improved management tools to analyze and plan production.

This will avoid over-purchasing or shortages

of inventory.

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.

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.

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.

While manual controls improved significantly in 2022 and 2023 at our San Diego location, we determined we

had similar issues with manufacturing systems at our Chicago facility that was added in 2022 as a result of the All Cell

We believe an enterprise resource planning (ERP) system will provide automated processes, better controls, and improved

management tools to analyze and plan production while assisting in the avoidance of over-purchasing or inventory

Since these controls have

1 unchanged sentence

based on the criteria established in the “Internal Integrated Framework” issued by COSO in 2013 and as a result, we did not

maintain effective internal control over financial reporting as of March 31, 2023.

maintain effective internal control over financial reporting as of June 30, 2023.

Changes in Internal Control Over Financial Reporting

During the three months ended

March 31, 2023, we began to implement stronger processes related to ordering, counting, warehousing, valuing and transacting our inventory

During the six months ended

June 30, 2023, we began to implement stronger processes related to ordering, counting, warehousing, valuing and transacting our inventory

at our energy storage facility in Broadview, IL.

We also have begun the implementation of a new enterprise resource planning (ERP) system

We also are in the process of implementing a new enterprise resource planning (ERP) system

to replace our existing QuickBooks system.

The implementation of the new ERP is scheduled for completion in July 2023.

The implementation of the new ERP is scheduled for completion in 2023.

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.

What changed 10-Q

Item 4. Controls and Procedures