1 unchanged sentence
Evaluation of Disclosure Controls and Procedures
−Removed: Under the supervision and with the participation of our management, including our principal executive officer and principal financial and accounting officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this report.
−Removed: In connection with this review and the audit of our consolidated financial statements for the year ended December 31, 2024, we identified material weaknesses as were reported previously, which continue to exist as of September 30, 2025.
−Removed: We did not properly design or maintain effective controls over the control environment, risk assessment, control activities, information and communication components and monitoring of the Committee of Sponsoring Organizations of the Treadway Commission in 2013.
−Removed: Based on this evaluation, our principal executive officer and principal financial and accounting officer have concluded that as a result of the material weaknesses as reported in our Annual Report on Form 10-K for the year ended December 31, 2024, our disclosure controls and procedures were not effective as of September 30, 2025.
−Removed: Notwithstanding the weaknesses, our management has concluded that the financial statements included elsewhere in this report present fairly, and in all material respects, our financial position, results of operation and cash flow in conformity with GAAP.
−Removed: Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in our Exchange Act reports 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 or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
−Removed: Changes in Internal Control Over Financial Reporting and Disclosure Controls
−Removed: Management remains committed to ongoing efforts to address material weaknesses.
−Removed: Although we will continue to implement measures to remedy our internal control deficiencies, there can be no assurance that our efforts will be successful or avoid potential future material weaknesses.
−Removed: In addition, until remediation steps have been completed and operated for a sufficient period of time, and subsequent evaluation of their effectiveness is completed, the material weaknesses previously identified will continue to exist.
−Removed: During the three months ended September 30, 2025, management, under the oversight of the Audit Committee of the Board of Directors, continued executing its comprehensive remediation plan.
−Removed: The Company achieved a significant milestone in its multi-year technology transformation initiative with the full implementation of its enterprise systems across all distribution centers and the retirement of legacy applications.
−Removed: This modernization provides a unified platform for financial and operational processes, enabling greater consistency, automation, and standardization of control activities.
−Removed: In parallel, management continued to enhance documentation, training and accountability for control owners across business units and functions.
−Removed: These changes are expected to strengthen the Company’s IT environment and support the continued enhancement of internal controls over financial reporting.
−Removed: Other than these changes there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
+Added: Our management, including our principal executive officer and principal financial and accounting officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of March 31, 2026.
+Added: Based on that evaluation, our principal executive officer and principal financial and accounting officer concluded that, due to the material weaknesses in internal control over financial reporting described below, our disclosure controls and procedures were not effective at the reasonable assurance level as of March 31, 2026.
+Added: Notwithstanding the material weaknesses, management has concluded that the consolidated financial statements included in this Quarterly Report on Form 10-Q present fairly, in all material respects, the Company’s financial position, results of operations and cash flows in conformity with U.S.
+Added: Previously Reported Material Weaknesses
+Added: As previously disclosed in our 2025 Annual Report, management identified material weaknesses in internal control over financial reporting related to entity-level controls impacting the control activities and monitoring components of the COSO framework.
+Added: These entity-level deficiencies resulted in the following material weaknesses over certain aspects of financial reporting, including controls related to:
+Added: • The recording of revenue and accounts receivable;
+Added: • the review of journal entries;
+Added: • the accounting for new leases;
+Added: • the impairment analysis of long-lived assets, including the review of underlying data and assumptions for completeness and accuracy.
+Added: These material weaknesses continued to exist as of March 31, 2026.
+Added: Remediation Activities
+Added: During the first quarter of 2026, management continued executing its remediation plan under the oversight of the Audit Committee of the Board of Directors.
+Added: The Company’s remediation efforts are focused on strengthening accounting-related controls, improving review precision, enhancing evidence of review, and validating the completeness and accuracy of key data used in control execution.
+Added: Management’s remediation efforts during 2026 include:
+Added: • Strengthening controls over revenue recognition and accounts receivable, including invoice validation, reconciliation procedures, and monitoring of revenue transactions;
+Added: • enhancing controls over lease accounting and long-lived asset impairment assessments, including review of key inputs, assumptions, and supporting data;
+Added: • improving the precision and consistency of journal entry review procedures.
+Added: Management believes these actions are designed to improve the effectiveness of internal control over financial reporting.
+Added: However, the material weaknesses will not be considered remediated until the applicable controls have been designed, implemented and operated effectively for a sufficient period of time, and management has completed testing to support that conclusion.
+Added: Changes in Internal Controls Over Financial Reporting
+Added: Other than the ongoing remediation activities described above, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II - OTHER INFORMATION
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.