Item 4. Controls and Procedures
Item
4. Controls and Procedures
(a)
Evaluation of Disclosure Controls and Procedures:
As
of the end of the period covered by this Form 10-Q, management performed, with the participation of our principal executive officer and
principal financial officer, an evaluation of the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e)
and 15d-15(e) of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”). Our disclosure controls and procedures
are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded,
processed, summarized, and reported within the time periods specified in the SEC’s forms, and that such information is accumulated
and communicated to our management, including our principal executive officer and principal financial officer, to allow timely decisions
regarding required disclosures. Based on the evaluation, our principal executive officer and principal financial officer concluded that,
as of September 30, 2021, our disclosure controls and procedures were not effective.
A
material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is
a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected
on a timely basis. We identified the following material weaknesses as of September 30, 2021:
● Insufficient
personnel resources within the accounting function to segregate the duties over financial transaction processing and reporting;
● Inability
to apply GAAP consistently for routine transactions, and to unique transactions and contracts;
● Inability
to evaluate the adoption of new reporting standards; and
● A
lack of consistent management involvement during the financial statement preparation process.
To
remediate our internal control weaknesses, management intends to implement the following measures, as finances allow:
●
Adding sufficient
accounting personnel or outside consultants to properly segregate duties and to effect a timely, accurate preparation of the financial
statements;
●
Adhering to internal procedures
for timely submission of supporting documents to outside consultants;
●
Developing and maintaining
adequate written accounting policies and procedures, once we hire additional accounting personnel or outside consultants.
The
additional hiring is contingent upon our efforts to obtain additional funding and the results of our operations. Management expects to
secure funds in the coming fiscal year but provides no assurances that it will be able to do so.
(b)
Changes in Internal Control over Financial Reporting:
There
were no changes in the Company’s internal control over financial reporting during the three months ended September 30, 2021 that
have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
However, our management is currently seeking to improve our controls and procedures in an effort to remediate the deficiency described
above.
22
PART
II – OTHER INFORMATION
Item
1. Legal Proceedings.
None.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.