What changed in this filing

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Item 4. Controls and Procedures

2023-05-10 compared with 2022-11-09 · 26 added, 52 removed, 2 unchanged (98% of the section changed)

CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and

As of the end of the period

covered by this report, under the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”)

and Interim Chief Financial Officer (“CFO” and together with the CEO, the “Certifying Officers”), we evaluated

the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under

the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).

Disclosure controls and procedures are controls

and other procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange

Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed

in our reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Certifying Officers,

or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

Based upon this evaluation,

and the above criteria, our CEO and CFO concluded that due to the previously reported material weakness described below, the Company’s

disclosure controls and procedures were not effective as of September 30, 2022.

Previously Reported Material Weakness in

Internal Control

A material weakness is a deficiency,

or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material

misstatement of our annual or interim consolidated financial statements will not be prevented or detected on a timely basis.

As previously reported, we

determined a material weakness existed relating to ineffective information technology general controls (“ITGCs”) in the areas

of user access and segregation of duties related to certain information technology (“IT”) systems that support the Company’s

financial reporting processes.

We believe that these control deficiencies were a result of turnover of critical IT leadership;

training of IT personnel;

and inadequate risk-assessment processes to identify and assess user access in certain IT systems that could

impact internal controls over financial reporting.

As a result, we determined that we did not have effective controls to prevent or detect

a material financial statement misstatement on a timely basis.

In response to this material

weakness, management, with oversight of the Audit Committee of the Board of Directors, has identified and is in the process of implementing

steps to remediate the material weakness.

The Company has allocated resources to remediate user access related control and segregation

of duties deficiencies.

Our remediation efforts also include providing training to personnel associated with reviewing IT user access.

In addition, we continue to engage consultants to advise us on making further improvements to our ITGCs.

Although we intend to complete

the remediation process as promptly as possible, we cannot at this time estimate how long it will take to remediate this material weakness.

Until this material weakness is remediated, we plan to continue to perform additional analyses and other procedures to ensure that our

consolidated financial statements are prepared in accordance with GAAP.

The material weakness did

not result in any identified misstatements in our condensed consolidated financial statements, and there were no changes to previously

issued financial results.

However, because the material weakness creates a reasonable possibility that a material misstatement to our

condensed consolidated financial statements would not be prevented or detected on a timely basis, the Company’s management concluded

that at September 30, 2022, the Company’s internal control over financial reporting was ineffective.

(b) Changes in Internal Controls Over Financial

Other than the remediation

efforts related to the design and implementation of sufficient controls and processes around ITGCs, there were no changes in our internal

control over financial reporting during the quarter ended September 30, 2022 that have materially affected, or are reasonably likely

to materially affect, our internal control over financial reporting.

Evaluation of Disclosure Controls and Procedures

of the end of the period covered by this report, under the supervision and with the participation of our management, including our Chief

Executive Officer (“CEO”) and Interim Chief Financial Officer (“CFO” and together with the CEO, the “Certifying

Officers”), we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as such term

is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).

controls and procedures are controls and other procedures designed to ensure that information required to be disclosed in our reports

filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s

rules and forms.

Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information

required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to management, including

our Certifying Officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

acquired Intellibed on August 31, 2022 and we are currently in the process of integrating Intellibed into our assessment of internal

control over financial reporting.

Management’s assessment and conclusions on the effectiveness of our internal control over financial

reporting as of March 31, 2023 excludes an assessment of the internal control over financial reporting of Intellibed.

We are in the process

of implementing our internal control structure at Intellibed and expect that this effort will be completed in fiscal 2023.

upon this evaluation, and the above criteria, our CEO and CFO concluded that the Company’s disclosure controls and procedures were

effective as of March 31, 2023 at the reasonable assurance level.

Changes in Internal Controls Over Financial Reporting.

were no changes in our internal control over financial reporting during the quarter ended March 31, 2023 that have materially affected,

or are reasonably likely to materially affect, our internal control over financial reporting.

OTHER INFORMATION

LEGAL PROCEEDINGS

Company is from time to time involved in various claims, legal proceedings and complaints arising in the ordinary course of business.

Please refer to Note 14 — Commitments and Contingencies to the condensed consolidated financial statements contained in

this report for certain information regarding our legal proceedings.

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