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 June 30, 2022,
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 June 30, 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 June 30, 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.
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.