Intellicheck, Inc. 10-Q

Item 4. Controls and Procedures Evaluation of Disclosure Controls and Procedures Under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of September 30, 2024 based on the guidelines established in the "Internal Control—Integrated Framework" (2013 framework) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). We maintain disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act that are designed to ensure that information required to be disclosed in our reports filed or submitted to the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms, and that information is accumulated and communicated to management, including the principal executive and financial officer as appropriate, to allow timely decisions regarding required disclosures. Based on its assessment, 27 Index management concluded that the Company's internal control over financial reporting was effective as of September 30, 2024. Remediation of Previously Disclosed Material Weakness We previously identified and disclosed in our 2023 Annual Report, as well as in our Quarterly Report on Form 10-Q filed for the quarters ended March 31, 2024, and June 30, 2024 a material weakness in our control environment whereby the Company did not have adequate controls for its processing of sales and use tax application to certain revenue transactions. As of September 30, 2024, management has completed our remediation efforts of this material weakness. Our remediation efforts included the following: • The Company engaged additional experienced accounting resources and implemented training to new and existing personnel. • The Company enhanced review controls over the nexus of sales and use tax applicability for revenue transactions. • The Company enhanced its usage of a sales and use tax application for compliance purposes. Limitations on Effectiveness of Controls. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all controls systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving its objectives. Changes in Internal Control over Financial Reporting Other than described above in "Remediation of Previously Disclosed Material Weakness", there have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended September 30, 2024 that has materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Part II - Other Information