Item 4. Controls and Procedures
Item
4. Controls and Procedures
Evaluation
of Disclosure Controls and Procedures
We
maintain disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”)) that are designed to ensure that information required to be disclosed in our reports
under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and
forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal
financial officer, as appropriate, to allow timely decisions regarding required disclosures. In designing disclosure controls and procedures,
our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls
and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood
of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future
conditions. Any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance
of achieving the desired control objectives.
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Under
the supervision and with the participation of our management, including our principal executive officer, who is also our principal financial
officer, we are required to perform an evaluation of our disclosure controls and procedures, as such term is defined in Rule 13a-15(e)
under the Exchange Act, as of March 31, 2021. Management has not completed such evaluation and, as such, has concluded that our disclosure
controls and procedures were not effective to provide reasonable assurance that information required to be disclosed by us in reports
we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s
rules and forms, and is accumulated and communicated to our management, including our principal executive officer, who is also our principal
financial officer, as appropriate to allow timely decisions regarding required disclosures. As a result of the material weakness in internal
controls over financial reporting described below, we concluded that our disclosure controls and procedures as of March 31, 2021 were
not effective.
Material
Weaknesses in Internal Control over Financial Reporting
Management
assessed the effectiveness of the Company’s internal control over financial reporting as of March 31, 2021 based on the
framework established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations
of the Treadway Commission. Based on this assessment, management has determined that the Company’s internal control over
financial reporting as of March 31, 2021 was not effective.
A
material weakness, as defined in the standards established by the Sarbanes-Oxley, 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 unaudited condensed consolidated financial statements will not be prevented or detected on a timely basis.
The
ineffectiveness of the Company’s internal control over financial reporting was due to the following material weaknesses:
●
Inadequate
segregation of duties due to limited personnel consistent with control objectives;
●
Adherence
to formal policies and procedures post-bankruptcy; and
●
Lack
of risk assessment procedures on internal controls to detect financial reporting risks on a timely manner.
Changes
in Internal Control Over Financial Reporting
Other
than described above there have been no changes in our internal control over financial reporting that occurred during our first quarter
of 2021 that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.
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PART
II – OTHER INFORMATION
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.