Item 4. Controls and Procedures
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a–15(e) and 15d-15(e) under the Exchange Act, as of June 30, 2025.
Based on that evaluation, the CEO and CFO concluded that the material weaknesses related to: (i) the accounting for complex transactions and estimates requiring significant judgment and (ii) revenue recognition, which were previously identified in Item 9A. “Controls and Procedures” of our Annual Report on Form 10-K for the year ended December 31, 2024, were still present as of June 30, 2025 (the “Evaluation Date”). Based on the material weaknesses, and the evaluation of our disclosure controls and procedures, our CEO and CFO concluded that our disclosure controls and procedures were not effective as of the Evaluation Date.
Notwithstanding the identified material weaknesses, management has concluded that our unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q are fairly stated in all material respects in accordance with GAAP.
Changes in Internal Control Over Financial Reporting
During the quarter ended June 30, 2025, the Company implemented a reduction-in-force that affected various employees and positions throughout the organization, including certain individuals identified as control owners. In addition, the Company experienced turnover in senior and executive leadership roles, including certain control owners, as a result of voluntary resignations. These departures were not due to any disagreement with the Company relating to financial reporting, operations, policies or practices.
While these changes resulted in certain modifications to roles and responsibilities within the Company’s internal control environment, management has taken appropriate steps to maintain the effectiveness of its internal control over financial reporting. Based on these efforts, management has concluded that the organizational restructuring and leadership transitions did not materially affect, and are not reasonably likely to materially affect, the Company’s internal control over financial reporting.
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PART II—OTHER INFORMATION
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