Item 4. Controls and Procedures
ITEM
4. CONTROLS AND PROCEDURES
Evaluation
of Application of U.S. GAAP and Disclosure Controls and Procedures
Our
management has evaluated, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer,
the effectiveness of our (i) controls over the application of U.S. GAAP based on guidance and interpretations issued by the Financial
Accounting Standards Board through the Accounting Standards Codification and Accounting Standards Updates and (ii) disclosure controls
and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered
by this report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of June 30,
2024, our U.S. GAAP reporting and disclosure controls and procedures were not effective in ensuring that information required to be reported
under U.S. GAAP and disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is (i) recorded,
processed, summarized, and reported within the time periods specified in the rules and forms of the SEC and (ii) accumulated and communicated
to our management, including our principal executive and principal accounting officers, or persons performing similar functions, as appropriate
to allow timely decisions regarding required disclosure.
Due
to accounting resource constraints, we have had limited review controls. These constraints have resulted in (i) a lack of segregation
of duties since we have a limited administrative staff, (ii) a lack of internal controls structure review and (iii) a restatement of
our unaudited financial statements as of and for the three and nine month periods ended September 30, 2023. As a result of these constraints,
we had material weaknesses in our internal control over financing reporting as of June 30, 2024.
The
Company’s assessment identified certain material weaknesses which are set forth below:
Functional
Controls and Segregation of Duties
Because
of the Company’s limited resources, there are limited controls over information processing. Additionally, there is inadequate segregation
of duties consistent with control objectives. Our management is composed of a small number of individuals resulting in a situation where
limitations on segregation of duties exist. All responsibility for accounting entries and the creation of financial statements is held
by a single person, though the Company engages multiple accounting consultants for accounting, tax and audit support. To remedy this
situation, we would need to hire additional staff or financial consultant support. We are assessing our capabilities to hire additional
staff to facilitate greater segregation of duties.
Accordingly,
as the result of identifying the above material weakness we have concluded that these control deficiencies resulted in a reasonable possibility
that a material misstatement of the annual or interim financial statements may not be prevented or detected on a timely basis by the
Company’s internal controls.
Management
believes that the material weaknesses set forth above were the result of the scale of our operations and are intrinsic to our small size.
Management continues to take actions to remedy these weaknesses, including the review of current staff, reassignment of duties, and possible
hiring of additional staff to create the necessary segregation of duties to improve controls over information processing.
Remediation
Plan
We
are starting the process of documenting, reviewing and improving our internal controls and procedures for compliance with Section 404
of the Sarbanes-Oxley Act, which requires annual management assessment of the effectiveness of our internal control over financial reporting.
To comply with the requirements of being a public company, the Company has undertaken various actions, and will take additional actions,
such as remediating the material weaknesses described above, implementing additional internal controls and procedures and hiring internal
audit staff or financial consultants. While we believe that these remediation actions will improve the effectiveness of our internal
control over financial reporting, the material weakness identified will not be considered remediated until the controls operate for a
sufficient period of time, and we cannot provide assurance that the measures we have taken to date, or any measures we may take in the
future will be sufficient to remediate the material weakness we have identified or avoid potential future material weaknesses.
Changes
in Internal Control over Financial Reporting
Other
than the remediation efforts described above, there were no changes in our internal controls over financial reporting during the quarter
ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial
reporting.
28
PART
II - OTHER INFORMATION
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