Item 4. Controls and Procedures
ITEM
4. CONTROLS AND PROCEDURES
Disclosure
controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our
reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in
the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to
ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated
to our management, including, as of June 30, 2026, Larry G. Swets, Jr., our then-Chief Executive Officer, and Hassan R. Baqar, our then-Chief Financial Officer,
to allow timely decisions regarding required disclosure.
Evaluation
of Disclosure Controls and Procedures
As
required by Rules 13a-15 and 15d-15 under the Exchange Act, Larry G. Swets, Jr., our then-Chief Executive Officer, and Hassan R. Baqar,
our then-Chief Financial carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures
as of June 30, 2026. Based upon their evaluation, our then-Chief Executive Officer and then-Chief Financial Officer concluded that our
disclosure controls and procedures (as defined in Rules 13a-15 (e) and 15d-15 (e) under the Exchange Act) were effective.
Changes
in Internal Control Over Financial Reporting
During
the six months ended June 30, 2026, there has been no change in our internal control over financial reporting that has materially affected,
or is reasonably likely to materially affect, our internal control over financial reporting.
In
connection with the Mergers, the Company’s financial statements for the period ended June 30, 2026 were prepared following the
Closing, utilizing personnel, processes, and systems that are now part of the Company’s combined control environment, which includes
personnel and processes previously used by Legacy BOXABL. Legacy BOXABL previously disclosed material weaknesses in its internal control
over financial reporting, which remain unremediated as of the date of this Quarterly Report. Because the Company’s financial statements
for the period covered by this Quarterly Report were prepared using this control environment, these material weaknesses should be considered
in evaluating the reliability of the financial reporting process used to prepare this Quarterly Report, notwithstanding that the reported
period predates the Closing. For a description of these material weaknesses, see Item 9A of BOXABL Inc.’s most recent Annual Report
on Form 10-K, filed with the SEC on March 27, 2026.
Control and Procedures of Legacy Boxabl
Management of Legacy Boxabl evaluated the effectiveness of its disclosure controls and procedures as of June 30,
2026 and concluded that Legacy Boxabl’s disclosure controls and procedures were not effective at the reasonable assurance level
due to the material weaknesses in the design and operation of effective Information Technology General Controls (“ITGC”)
over certain key financial IT systems and of certain business process controls over the preparation and timely review of financial statements
and disclosures described below. Please see “Controls and Procedures” in Exhibit 99.2 hereto.
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PART
II – OTHER INFORMATION