5 unchanged sentences
Also, 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.
−Removed: Our management conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting as of March 31, 2023, based on the Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
−Removed: Based on the results of this evaluation, the Company’s management concluded that internal control over financial reporting was not effective as of March 31, 2023, due to the material weakness listed below.
+Added: Our management conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting as of June 30, 2023, based on the Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
+Added: Based on the results of this evaluation, the Company’s management concluded that internal control over financial reporting was not effective as of June 30, 2023, due to the material weakness listed below.
A material weakness is a deficiency, or a combination of deficiencies, in ICFR, 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.
−Removed: Management identified a material weakness in its internal control over financial reporting at December 31, 2022, over our inventory process which still exists as of March 31, 2023.
+Added: Management identified a material weakness in its internal control over financial reporting at December 31, 2022, over our inventory process which still exists as of June 30, 2023.
Specifically, we have identified issues related to:
6 unchanged sentences
Our planned internal control remediation efforts, which are underway, include:
−Removed: • We intend to update and implement accounting policies and procedures related to work in process inventory.
−Removed: These will include modifying our financial reporting account consolidation procedures.
−Removed: • We intend to improve and enforce our formalized inventory count and inventory adjustment processes which includes taking steps to reinforce the inventory taking procedures, proper training and supervision of warehouse staff and strengthening review and approval requirements for any inventory adjustments.
+Added: • We have updated and implemented new accounting policies and procedures related to work in process inventory.
+Added: These included modifying our financial reporting account consolidation procedures and financial review process.
+Added: • We have hired additional management with a focus on inventory control and inventory best practices.
+Added: • We have improved and enforced our formalized inventory count and inventory adjustment processes which includes taking steps to reinforce the inventory taking procedures, proper training and supervision of warehouse staff.
+Added: • We have added additional inventory safeguards in our warehouses limiting physical access to our inventory.
+Added: • We have limited the number of employees who can make inventory adjustments in our accounting software by adding additional IT controls.
• We have engaged a third-party consultant to conduct a full assessment of our controls and procedures.
3 unchanged sentences
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.