What changed in this filing

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Item 4. Controls and Procedures

2024-10-08 compared with 2024-09-10 · 24 added, 30 removed, 47 unchanged (53% of the section changed)

3 unchanged sentences

evaluated the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) and 15d-15(e) under the Securities

Exchange Act of 1934, as amended (the “Exchange Act”), as of March 31, 2024.

Exchange Act of 1934, as amended (the “Exchange Act”), as of June 30, 2024.

Our disclosure controls and procedures are designed

3 unchanged sentences

Based on this evaluation, and as a result of the material weaknesses described below, our CEO and CFO have concluded that our disclosure

controls and procedures were not effective as of March 31, 2024.

controls and procedures were not effective as of June 30, 2024.

In light of this determination, our management has performed additional

10 unchanged sentences

The following material weaknesses in our internal control over

financial reporting were present as of December 31, 2023, and continued to exist as of March 31, 2024:

Company did not maintain effective controls over the revenue recognition of over-time contracts

and associated costs.

The Company’s underlying estimates of total labor hours required

to complete over-time contracts were materially different from the actual labor hours required,

which was determined to represent an error, and, as a result, the percentage of completion

used to recognize revenue was materially different from the percentage of completion using

actual labor hours incurred.

Additionally, the Company did not properly account for recognition

of costs incurred by contract.

financial reporting were present as of December 31, 2023, and continued to exist as of June 30, 2024:

Company did not maintain effective controls over the revenue recognition of over-time contracts and associated costs.

The Company’s

underlying estimates of total labor hours required to complete over-time contracts were materially different from the actual labor

hours required, which was determined to represent an error, and, as a result, the percentage of completion used to recognize revenue

was materially different from the percentage of completion using actual labor hours incurred.

Additionally, the Company did not properly

account for recognition of costs incurred by contract.

This material weakness resulted in the restatement of the

Company’s consolidated financial statements for the year ended December 31, 2022, as

well as its interim consolidated financial statements for the three months ended March 31,

2022, and 2023, the three and six months ended June 30, 2022, and 2023 and the three and nine

months ended September 30, 2022, and 2023.

Company did not design and maintain effective controls over the accounting for inventory

and related cost of sales, primarily due to the lack of an automated tracking system and

the manual nature of its current processes and controls surrounding inventory.

Company’s consolidated financial statements for the year ended December 31, 2022, as well as its interim consolidated financial

statements for the three months ended March 31, 2022, and 2023, the three and six months ended June 30, 2022, and 2023 and the three

and nine months ended September 30, 2022, and 2023.

Company did not design and maintain effective controls over the accounting for inventory and related cost of sales, primarily due

to the lack of an automated tracking system and the manual nature of its current processes and controls surrounding inventory.

Specifically,

we did not design and maintain effective controls over (1) complete and accurate inventory

costing, including recording inventoriable costs at the lower of cost and net realizable

value, (2) cycle count procedures and inventory system changes, which occur without proper

review and documentation and (3) proper segregation of duties.

Company has a lack of sufficient accounting personnel with the necessary skills, knowledge,

and expertise.

This deficiency impacts our ability to ensure appropriate segregation of duties,

and to accurately and timely close, consolidate and prepare financial statements as required

to maintain compliance with reporting deadlines under applicable SEC regulations.

we did not design and maintain effective controls over (1) complete and accurate inventory costing, including recording inventoriable

costs at the lower of cost and net realizable value, (2) cycle count procedures and inventory system changes, which occur without

proper review and documentation and (3) proper segregation of duties.

Company has a lack of sufficient accounting personnel with the necessary skills, knowledge, and expertise.

This deficiency impacts

our ability to ensure appropriate segregation of duties, and to accurately and timely close, consolidate and prepare financial statements

as required to maintain compliance with reporting deadlines under applicable SEC regulations.

Plan to Remediate the Material Weaknesses

21 unchanged sentences

than described above, there have been no changes in our internal control over financial reporting that occurred during the three

months ended March 31, 2024, that have materially affected, or that are reasonably likely to materially affect,

our internal control over financial reporting.

months ended June 30, 2024, that have materially affected, or that are reasonably likely to materially affect, our internal control

over financial reporting.

II – OTHER INFORMATION

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.

What changed 10-Q

Item 4. Controls and Procedures