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 March 31, 2022, our disclosure controls
and procedures were not effective.
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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 March 31, 2022:
● 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 quarter ended March 31, 2022 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.
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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.