Item 4. Controls and Procedures
Item
4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
The term “disclosure controls and procedures,”
as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, refers to controls and procedures that are designed to ensure that
information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include,
without limitation, controls and procedures designed to ensure that such information is accumulated and communicated to a company’s
management, including its principal executive and principal financial officers, as appropriate to allow for timely decisions regarding
required disclosure. 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 of March 31, 2025. Based
on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were
not effective at a reasonable assurance level as of March 31, 2025.
In designing and evaluating our disclosure controls
and procedures, management recognizes that disclosure controls and procedures, no matter how well conceived and operated, can provide
only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Additionally, in designing
disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship
of possible disclosure controls and procedures. The design of any system of controls is also based in part upon certain assumptions about
the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential
future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies
or procedures may deteriorate. Because of the inherent limitations in a control system, misstatements due to error or fraud may occur
and not be detected.
Status of Previously Disclosed Material Weakness
As
previously disclosed in our Annual Report on Form 10-K for the period ended December 31, 2024, we identified the below material weakness in our internal controls over financial reporting:
● Due to our size and stage of development, segregation of all conflicting duties is not always possible
or economically feasible. As of March 31, 2025, we continue to lack sufficient review procedures and segregation of duties such that proper review had
not been performed by someone other than the preparer, including manual journal entries, and that process documentation is lacking for
review
There
have been no changes in the Company’s internal control over financial reporting during the three months ended March 31, 2025
that has materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
Management will continue to monitor and evaluate the effectiveness of our internal controls and procedures over financial reporting as
necessary.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal control
over financial reporting (as defined in Rules 13a-15(f) or 15d-15(f) of the Exchange Act) that occurred during the period covered by this
Quarterly Report that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
However, the Company will continue to monitor and work to address the underlying causes of material weaknesses and control deficiencies.
Such material weaknesses and control deficiencies will not be fully remediated until the Company has concluded that its internal controls
are operating effectively for a sufficient period of time.
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PART II - OTHER INFORMATION
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.