15 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, 2023, we do not 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, 2023, we do not
+Added: 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
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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 manual processes during the year to track and
−Removed: control inventory transactions, apply labor and overheads to inventory and to perform a wall-to-wall physical inventory at the end
−Removed: of the year to confirm the ending inventory balance and valuation.
−Removed: While these processes provide good results in determining
−Removed: inventory and cost of sales transactions, as we grow, it has become a very time-consuming process and could impact our ability to
−Removed: submit timely reporting.
−Removed: While manual controls improved significantly in 2022 and 2023 at our San Diego location, we determined we
−Removed: had similar issues with manufacturing systems at our Chicago facility that was added in 2022 as a result of the All Cell
−Removed: We believe an enterprise resource planning (ERP) system will provide automated processes, better controls, and improved
−Removed: management tools to analyze and plan production while assisting in the avoidance of over-purchasing or inventory
+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: 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 acquisition.
+Added: 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 shortages.
Since these controls have
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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, 2023.
+Added: maintain effective internal control over financial reporting as of September 30, 2023.
Changes in Internal Control Over Financial Reporting
−Removed: During the six months ended
−Removed: June 30, 2023, we began to implement stronger processes related to ordering, counting, warehousing, valuing and transacting our inventory
+Added: During the nine months ended
+Added: September 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.
−Removed: We also are in the process of implementing a new enterprise resource planning (ERP) system
−Removed: to replace our existing QuickBooks system.
−Removed: The implementation of the new ERP is scheduled for completion in 2023.
+Added: We also are completing the process of implementing a new company-wide enterprise resource
+Added: planning (ERP) system to replace our existing QuickBooks system, which will be effective in Q3 2023.
OTHER INFORMATION
−Removed: Legal Proceedings
−Removed: The Company may be involved
−Removed: in legal actions and claims arising in the ordinary course of business from time to time.
−Removed: As of the date of this report, there are no
−Removed: 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.