Item 4. Controls and Procedures
Item 4. Controls and Procedures.
Management ’ s Evaluation of our Disclosure Controls and Procedures
Under the supervision and with the participation of our chief executive officer and our principal financial officer and other senior management personnel, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15(d)-15(e)) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this report.
In the course of preparing the Company’s financial statement for the three months ended March 31, 2024, our management concluded and reported that the following was a material weakness in internal control over financial reporting.
Management determined that the Company's statement of cash flows for the six months ended June 30, 2023, nine months ended September 30, 2023, and twelve months ended December 31, 2023 , included an error in the collateralization of derivative instruments due to a deficiency in our review control in accordance with applicable accounting guidance over cash flows. The control did not operate at a level precise enough to detect material errors in calculations and formulas and as a result did not detect material differences between the operating and investing sections of the statement of cash flows. To remediate this deficiency, the Company's management, under the oversight from the Audit Committee, implemented additional review procedures to enhance our internal control over financial reporting with respect to the statement of cash flows. These review procedures include the development of a review checklist to ensure that we apply the applicable accounting guidance under ASC 230, Statement of Cash Flows.
Following the implementation of these review procedures, management assessed and evaluated the effectiveness of our internal control over financial reporting as of June 30, 2024. Based on that evaluation, our chief executive officer and our principal financial officer have concluded that these disclosure controls and procedures, at June 30, 2024, were effective to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported accurately and within the time periods specified in the SEC's rules and forms. Management believes that the consolidated financial statements included in this Quarterly Report on Form 10-Q present fairly in all material respects our consolidated financial position, results of operations and cash flows for the period presented.
Changes in Internal Control over Financial Reporting
Other than as noted above, there were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the quarter ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II OTHER INFORMATION
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