Item 4. Controls and Procedures
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the assistance of our chief executive officer and chief financial officer, has reviewed and evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of March 31, 2025. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving such control objectives. Based on the evaluation of our disclosure controls and procedures as of March 31, 2025, our chief executive officer and chief financial officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.
Management’s Remediation of Previously Identified Material Weakness
As previously disclosed in Part II. Item 9A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, management identified a material weakness in internal control over financial reporting related to ineffective change management review and periodic access review controls, with respect to the Company’s human resources information system (“HRIS”). As a result of the identified deficiencies, certain change management and user access controls, as well as the related process-level IT dependent manual controls and automated application controls across various processes impacted by the HRIS deficiencies were also determined to be ineffective.
The material weakness identified above did not result in any material misstatements in our financial statements or disclosures, and there were no changes to previously released financial results.
The Company is committed to maintaining a strong internal control environment. In response to the identified material weakness above, management implemented measures designed to improve internal control over financial reporting to remediate the control deficiencies that led to the material weakness.
Remediation actions included: (i) enhancing the assignment of control responsibility and accountability to responsible operational and IT personnel, (ii) developing and implementing additional training and awareness, including educating control owners concerning the principles and requirements of each control, (ii) increasing the extent of senior management oversight, and (iv) redesigned and enhanced HRIS review controls.
Management completed testing of the impacted controls during the quarter ended March 31, 2025, and found them to be operating effectively for a sufficient period of time. As a result, Management has concluded that the material weakness in internal control over financial reporting has been remediated.
Changes in Internal Control over Financial Reporting
Our management, including our chief executive officer and chief financial officer, have evaluated changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2025. Other than in connection with steps taken to remediate the material weakness described above, our management has concluded that there have been no changes in our internal control over financial reporting during the three months ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
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