EUDA Health Holdings Ltd 10-Q

Item 4. Controls and Procedures Evaluation of the Effectiveness of Internal Control over Financial Reporting As required by Rules 13a-15 and 15d-15 under the Exchange Act, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the fiscal quarter ended March 31, 2023, Based on this evaluation, our Chief Executive Officer and Chief financial Officer have concluded that during the period covered by this Quarterly Report, our disclosure controls and procedures were not effective due to the following material weaknesses in our internal control over financial reporting. (i) We did not have sufficient financial reporting and accounting personnel, especially those with understanding of U.S. GAAP knowledge; (ii) We are lacking of proper mechanism to identify and assess the experience and qualification of third-party specialists. We have taken steps to remediate the material weakness described above and to enhance our overall control environment. However, we will not consider the material weakness remediated until our enhanced control is operational for a sufficient period of time and tested, enabling management to conclude that the enhanced controls are operating effectively. Our remediation plan includes (1) hiring of additional finance and accounting staff with qualifications and work experiences in U.S. GAAP and SEC reporting requirements to formalize and strengthen the key internal control over financial reporting; (2) allocating sufficient resources to prepare and review financial statements and related disclosures in accordance with U.S.GAAP and SEC reporting requirements, (3) hiring of qualified consultant to assess Sarbanes-Oxley Act compliance readiness, to assess where we can improve our overall internal control over financial reporting function, and to assist us in implementing improvements where necessary; and (4) setting up an effective internal mechanism to perform background check, identify and assess the qualification of the engaged third-party specialists; and (5) consulting with experienced valuation specialist on a timely basis. Changes in Internal Control over Financial Reporting There was no change in our internal control over financial reporting that occurred during the fiscal quarter ended March 31, 2023 covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. 48 PART II - OTHER INFORMATION Item 1. Legal Proceedings. None. Item 1A. Risk Factors. As a smaller reporting company, we are not required to make disclosures under this Item. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. We made no sales of our equity securities during fiscal quarter covered by the report that was not already reported on a Current Report on Form 8- K . Item 3. Defaults Upon Senior Securities. None. Item 4. Mine Safety Disclosures. Not Applicable.