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.
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PART II. OTHER INFORMATION
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