Item 4. Controls and Procedures
ITEM
4.
CONTROLS
AND PROCEDURES
Disclosure
controls and procedures.
As
of the end of period covered by this report, we carried out an evaluation, with the participation of our chief executive officer and
chief financial officer, of the effectiveness of our disclosure controls and procedures pursuant to Securities Exchange Act Rule 13a-15.
Based upon that evaluation, we concluded that our disclosure controls and procedures are not effective in ensuring that information required
to be disclosed by us in the reports that we file or submit under the Securities Exchange Act is recorded, processed, summarized and
reported, within the time periods specified in the SEC’s rules and forms.
Management
has determined that our internal controls contain material weaknesses due to the absence of segregation of duties, as well as lack of
qualified accounting personnel, and excessive reliance on third-party consultants for accounting, financial reporting and related activities.
During the past fiscal year we have added qualified accounting personnel, so the Company does not have to rely on third-party consultants.
The Company has established additional monitoring controls over the financial statements. We have also improved our internal controls
to provide for a detailed accounting review of all revenue items and accounts receivable and accounts payable transactions in connection
with the entry and categorization of each transaction in the preparation of the Company’s financial statements.
Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. 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 and procedures may deteriorate.
Changes
in internal controls over financial reporting.
No
changes were made to our internal controls in the quarterly period covered by this report that have materially affected, or are reasonably
likely materially to affect, our internal control over financial reporting.
26
PART
II—OTHER INFORMATION
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