Item 4. Controls and Procedures
Item 4. Controls and Procedures
Under
the
supervision
and
with
the
participation
of
our
management,
including
our
executive
chairman
and
our
group
chief
financial officer, we conducted
an evaluation of our disclosure controls and procedures, as such term is defined
under Rule 13a-15(e)
promulgated under the Securities Exchange Act of 1934, as amended, as of
March 31, 2025.
We previously identified and disclosed in Part II, Item 9A of our Annual Report on Form 10-K for the
year ended June 30, 2024,
material weaknesses in our internal control over financial reporting
related to: (1) information technology general controls (“ITGCs”),
specifically
insufficient
risk
assessment,
design
and
implementation,
monitoring
activities
and
training
of
individuals
to
operate
controls
in the
areas of
user access
and
program-change
management
for
certain
information
technology
systems
that support
our
financial reporting processes and (2) insufficient design and implementation of controls and associated policies
and procedures in our
annual goodwill impairment assessment. 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
consolidated financial
statements will not be prevented or detected on a timely basis.
As a result of
insufficient time to design, implement and fully
test controls to ensure we
have remediated
the material weaknesses
discussed in our
Annual Report on
Form 10-K for
our fiscal year
ended June 30,
2024 (as described
above), the executive
chairman
and the group chief financial officer concluded
that our disclosure controls and procedures were not effective as of
March 31, 2025.
Notwithstanding
the
previously
identified
material
weaknesses,
management
believes
the
condensed
consolidated
financial
statements included
in this Quarterly
Report on
Form 10-Q fairly
present, in
all material respects,
our financial
condition, results
of
operations and cash flows as of and for the periods presented in accordance with
GAAP.
Remediation Plan
Management has made
good progress
and continues to
actively work
on remediating the
identified material weakness
and remains
committed
to
remediating
the material
weakness
in
a
timely
manner.
Our remediation
process is
ongoing
and
includes, but
is not
limited to, the following steps:
-
the
review
of
ITGCs
and
implementation
of
changes
to
certain
controls
to
address
the
issues
related
to
the
material
weaknesses identified above; and
-
the review and implementation of changes to the design of the controls related
to the goodwill impairment assessment.
The remediation plan
may be adjusted
as is appropriate,
as we continue
to evaluate and
enhance our internal
control over financial
reporting. Other than the
design and implementation of
the remediation plan, there
have not been any
changes in our internal control
over
financial
reporting
during
the
fiscal
quarter
ended
March
31,
2025,
that
have
materially
affected,
or
are
reasonably
likely
to
materially affect, our internal control over financial reporting.
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Part II. Other Information