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As of the end of the period covered by this Quarterly Report on Form 10-Q, the Company’s management conducted an evaluation, under the supervision and with the participation of the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act).
−Removed: Based on this evaluation, the Chief Executive Officer and the Chief Financial Officer each concluded, as of the end of the period, our disclosure controls and procedures were not effective as of September 30, 2021, due to material weaknesses in internal control over financial reporting that were disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and as described below.
+Added: Based on this evaluation, the Chief Executive Officer and the Chief Financial Officer each concluded, as of the end of the period, our disclosure controls and procedures were not effective as of March 31, 2022, due to material weaknesses in internal control over financial reporting that were disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and as described below.
Material Weaknesses in Internal Control Over Financial Reporting
−Removed: As previously disclosed in our Annual report on Form 10-K filed with the SEC on March 17, 2021, we identified material weaknesses in our internal control over financial reporting during the preparation of our financial statements for the year ended December 31, 2020.
+Added: As previously disclosed in our Annual report on Form 10-K filed with the SEC on August 3, 2022, we identified material weaknesses in our internal control over financial reporting during the preparation of our financial statements for the year ended December 31, 2021.
Under standards established by the PCAOB, 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 annual or interim financial statements will not be prevented or detected and corrected on a timely basis.
−Removed: The material weaknesses in financial reporting as of September 30, 2021, are summarized as follows:
−Removed: ● We determined that we did not have sufficient accounting processes and procedures in place, particularly in the areas of allowance for loan loss;
−Removed: inventory costing;
−Removed: revenue recognition;
−Removed: income taxes;
−Removed: and processing of accounts payable and treasury transactions.
−Removed: ● We determined that we did not have sufficient personnel to support preparation of financial statements for compliance with U.S.
+Added: The material weaknesses in financial reporting as of March 31, 2022 are summarized as follows:
+Added: ● We determined that we did not have sufficient accounting systems and procedures in place, particularly in the areas of revenue recognition;
+Added: processing of accounts payable;
+Added: prepaid expenses;
+Added: and inventory costing and management .
+Added: ● We determined that we did not have sufficient systems and processes to support timely preparation of financial statements for compliance with U.S.
GAAP and SEC.
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Legal Proceedings.
−Removed: See Note 12 - Commitments and Contingencies in our September 30, 2021 Condensed Financial Statements, included in Part I, Item 1, Financial Statements (Unaudited), of this Quarterly Report.
+Added: See Note 13 - Commitments and Contingencies in our March 31, 2022 Condensed Financial Statements, included in Part I, Item 1, Financial Statements (Unaudited), of this Quarterly Report.
Unregistered Sales of Equity Securities and Use of Proceeds.
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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.