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Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.
+Added: Previously Identified Material Weakness
+Added: As previously reported in our Annual Report on Form 10-K filed with the SEC on March 13, 2026, we identified a material weakness in internal control over financial reporting.
+Added: Management did not design and implement adequate control activities related to the accounting for and classification of certain reciprocal deposits and transactions.
+Added: This material weakness resulted from ineffective controls over the accounting for and classification of reciprocal network deposits.
+Added: This resulted in (i) a material misclassification of deposits within the Consolidated Statements of Condition between interest-bearing deposits and non-interest bearing deposits and (ii) an immaterial misclassification of expenses within the Consolidated Statements of Comprehensive (Loss) Income, between interest expense and non-interest expense, with no impact to net (loss) income.
+Added: This required a restatement of our annual consolidated financial statements for the years ended December 31, 2024 and 2023, and our unaudited interim condensed consolidated financial statements for the quarters ended September 30, 2025, June 30, 2025, March 31, 2025, September 30, 2024, June 30, 2024, and March 31, 2024.
+Added: While only the statement of condition misclassification was significant enough to result in the material misstatement, management chose to revise the statement of comprehensive (loss) income as well for the affected periods in order to provide a more complete picture.
+Added: Remediation Plan for the Material Weakness
+Added: Since identifying the material weakness, management, under the oversight of the Audit Committee has committed to remediate this deficiency.
+Added: The Company continues to execute on its remediation plan, which includes implementing controls to:
+Added: • Enhance risk assessment procedures over reciprocal deposit networks to identify whether additional control activities are needed to conform to our accounting policies;
+Added: • Increase involvement of technical accounting resources for complex areas at initial onboarding and for periodic review;
+Added: • Require formal documentation of technical conclusion and evidence of supervisory oversight for third party reciprocal deposit networks.
Changes in Internal Control over Financial Reporting
−Removed: During the quarter ended September 30, 2025, there were no significant changes that materially affected, or are reasonably likely to affect, our internal control over financial reporting.
+Added: Other than the remediation efforts described above, during the quarter ended March 31, 2026, there were no significant changes that materially affected, or are reasonably likely to affect, our internal control over financial reporting.
The term internal control over financial reporting, as defined by Rule 15d-15(f) of the Act, is a process designed by, or under the supervision of, the issuer's principal executive and principal financial officers, or persons performing similar functions, and affected by the issuer's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S.
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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.