What changed in this filing

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Item 4. Controls and Procedures

2021-11-12 compared with 2021-05-13 · 60 added, 54 removed, 17 unchanged (87% of the section changed)

1 unchanged sentence

of Disclosure Controls and Procedures

management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of

our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period

covered by this Quarterly Report on Form 10-Q, and have concluded that, based on such evaluation, our disclosure controls and

procedures were not effective due to the material weakness in our internal control over financial reporting as of March 31,

2021 as described below.

management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure

controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Quarterly

Report on Form 10-Q, and have concluded that, based on such evaluation, our disclosure controls and procedures were not effective due

to the material weakness in our internal control over financial reporting as of September 30, 2021 as described below.

Notwithstanding

the conclusion that our disclosure controls and procedures were not effective as of the end of the period covered by this report,

we believe that our consolidated financial statements and other information contained in this quarterly report present fairly,

in all material respects, our business, financial condition and results of operations for the interim periods presented.

the conclusion that our disclosure controls and procedures were not effective as of the end of the period covered by this report, we

believe that our condensed consolidated financial statements and other information contained in this Quarterly Report on Form

10-Q present fairly, in all material respects, our business, financial condition and results of operations for the interim periods

Company completed the IPO in December 2020.

Prior to the IPO, the Company was a private corporation with limited accounting personnel

and other supervisory resources necessary to adequately execute its accounting processes and address its internal controls over

financial reporting requirements.

As a result, previously existing internal controls are no longer sufficient, and the Company

is in the process of updating these controls.

The design and implementation of internal control over financial reporting for the

Company’s post-IPO has required and will continue to require significant time and resources from management and other personnel.

and other supervisory resources necessary to adequately execute its accounting processes and address its internal controls over financial

reporting requirements.

As a result, previously existing internal controls are no longer sufficient, and the Company is in the process

of updating these controls.

The design and implementation of internal control over financial reporting for the Company’s post-IPO

has required and will continue to require significant time and resources from management and other personnel.

part of this updating process, our management identified a material weakness in its internal control over financial reporting.

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there

is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or

detected on a timely basis.

The material weakness identified relates to the fact that the Company has not yet designed and maintained

an effective control environment commensurate with its financial reporting requirements, including a) has not yet completed the

formally documented policies and procedures with respect to the review, supervision and monitoring of the Company’s accounting

and reporting functions and b) lack of evidence to support the performance of controls and the adequacy of review procedures,

including the completeness and accuracy of information used in the performance of controls.

is committed to continuing with the steps necessary to remediate the control deficiencies that constituted the above material

During 2021, we made the following enhancements to our control environment:

added accounting and finance personnel to provide additional individuals to allow for segregation of duties in the preparation

and review of schedules, calculations, and journal entries that support financial reporting, to provide oversight, structure and

reporting lines, and to provide additional review over our disclosures;

enhanced our controls to improve the preparation and review over complex accounting measurements, and the application of GAAP

weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable

possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely

The material weakness identified relates to the fact that the Company has not yet designed and maintained an effective control

environment commensurate with its financial reporting requirements, including a) has not yet completed the formally documented policies

and procedures with respect to the review, supervision and monitoring of the Company’s accounting and reporting functions, b) lack

of evidence to support the performance of controls and the adequacy of review procedures, including the completeness and accuracy of

information used in the performance of controls and c) we currently have limited accounting personnel and

other supervisory resources necessary to adequately execute the Company’s accounting processes and address its internal controls

over financial reporting requirements.

is committed to continuing with the steps necessary to remediate the control deficiencies that constituted the above material weakness.

Since the IPO, we made the following enhancements to our control environment:

added accounting and finance personnel to provide additional individuals to allow for segregation of duties in the preparation and

review of schedules, calculations, and journal entries that support financial reporting, to provide oversight, structure and reporting

lines, and to provide additional review over our disclosures;

We enhanced our controls to improve the preparation and review over complex accounting measurements, and the application of GAAP

to significant accounts and transactions, and our financial statement disclosures;

are in the process of engaging outside consultants to assist us in our evaluation of the design, implementation, and documentation

of internal controls that address the relevant risks, and that provide for appropriate evidence of performance of our internal

controls (including completeness and accuracy procedures).

the direction of the audit committee of the board of directors, management will continue to take measures to remediate the material

weakness in 2021.

We are in the process of engaging outside consultants to assist us in our evaluation of the design, implementation, and documentation

of internal controls that address the relevant risks, and that provide for appropriate evidence of performance of our internal controls

(including completeness and accuracy procedures).

the direction of the audit committee of the board of directors, management will continue to take measures to further remediate

the material weakness.

As such, we will continue to enhance corporate oversight over process-level controls and structures to ensure

that there is appropriate assignment of authority, responsibility, and accountability to enable remediation of our material weakness.

We believe that our remediation plan will be sufficient to remediate the identified material weakness and strengthen our internal

control over financial reporting.

We believe that our remediation plan will be sufficient to remediate the identified material weakness and strengthen our internal control

over financial reporting.

we continue to evaluate, and work to improve, our internal control over financial reporting, management may determine that additional

1 unchanged sentence

Limitation on the Effectiveness of Internal Controls

effectiveness of any system of internal control over financial reporting, including ours, is subject to inherent limitations,

including the exercise of judgment in designing, implementing, operating, and evaluating the controls and procedures, and the

inability to eliminate misconduct completely.

Accordingly, in designing and evaluating the disclosure controls and procedures,

management recognizes that any system of internal control over financial reporting, including ours, no matter how well designed

and operated, can only provide reasonable, not absolute assurance of achieving the desired control objectives.

In addition, the

design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is

required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because

of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

We intend to continue

to monitor and upgrade our internal controls as necessary or appropriate for our business, but cannot assure you that such improvements

will be sufficient to provide us with effective internal control over financial reporting.

effectiveness of any system of internal control over financial reporting, including ours, is subject to inherent limitations, including

the exercise of judgment in designing, implementing, operating, and evaluating the controls and procedures, and the inability to eliminate

misconduct completely.

Accordingly, in designing and evaluating the disclosure controls and procedures, management recognizes that any

system of internal control over financial reporting, including ours, no matter how well designed and operated, can only provide reasonable,

not absolute assurance of achieving the desired control objectives.

In addition, the design of disclosure controls and procedures must

reflect the fact that there are resource constraints, and that management is required to apply its judgment in evaluating the benefits

of possible controls and procedures relative to their costs.

Moreover, projections of any evaluation of effectiveness to future periods

are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the

policies or procedures may deteriorate.

We intend to continue to monitor and upgrade our internal controls as necessary or appropriate

for our business but cannot assure you that such improvements will be sufficient to provide us with effective internal control over financial

in Internal Controls over Financial Reporting

as noted above, there were no changes in our internal control over financial reporting that occurred during the three months ended

March 31, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial

II—OTHER INFORMATION

have been no changes to the Company’s internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d 15(f) under

the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect,

our internal control over financial reporting.

OTHER INFORMATION

LEGAL PROCEEDINGS.

time to time, we may be subject to legal proceedings and claims arising in the ordinary course of business.

We are not currently

engaged in any material legal proceedings.

We are not currently engaged

in any material legal proceedings.

RISK FACTORS.

are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise

required under this item.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

were no unregistered sales of equity securities during the period.

DEFAULTS UPON SENIOR SECURITIES.

MINE SAFEY DISCLOSURES.

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.

What changed 10-Q

Item 4. Controls and Procedures