What changed in this filing

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Item 4. Controls and Procedures

2024-08-05 compared with 2024-05-07 · 23 added, 25 removed, 19 unchanged (72% of the section changed)

CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

(a) Evaluation of Disclosure Controls and

Under the supervision and

with the participation of our management, including our Chief Executive Officer (“CEO”) and 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 Exchange Act).

Our disclosure controls and procedures are

designed to provide reasonable assurance that the 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.

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 Exchange Act).

Our disclosure controls and procedures

are designed to provide reasonable assurance that the 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.

of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

5 unchanged sentences

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

Based upon this evaluation, and the above criteria, our Certifying

Officers concluded that the Company’s disclosure controls and procedures were not effective as of March 31, 2024, due to the material

weakness in our internal control over financial reporting, described below.

Based upon this evaluation,

and the above criteria, our Certifying Officers concluded that the Company’s disclosure controls and procedures were effective

as of June 30, 2024 at the reasonable assurance level.

Previously Reported Material Weakness

5 unchanged sentences

of the related wholesale accrued warranty liabilities.

Plans for Remediation of Material Weakness

In response to the material

weakness, we have designed and implemented a control over the review of all wholesale customer contracts to ensure the terms contained

therein are appropriately evaluated and recorded.

This control includes increased rigor and participation among our legal and accounting

personnel regarding the appropriate consideration and application of contractual terms.

We are also implementing a new control over credit

memo review and approval.

Further, we are implementing a new control over the evaluation and review of accrued wholesale warranty liabilities.

The Company will not be able to fully remediate this material weakness until these steps have been completed and have been operating effectively

for a sufficient period of time.

The Company may also identify additional measures that may be required to remediate the material weakness

in the Company’s internal control over financial reporting, necessitating further action.

In response to this material

weakness, management, with oversight of the Audit Committee of the Board, designed and effectively implemented a control over the review

of all wholesale customer contracts to ensure the terms contained therein are appropriately evaluated and recorded.

This control includes

increased rigor and participation among our legal and accounting personnel regarding the appropriate consideration and application of

contractual terms.

We also implemented new controls over credit memo review and approval and the evaluation and review of accrued wholesale

warranty liabilities.

Based on these measures, management has tested the new controls, found them effective, and concluded that the previously

reported material weakness described above has been remediated as of June 30, 2024 .

(b) Changes in Internal Controls Over Financial

Other than the remediation efforts described above, there were no changes

in our internal control over financial reporting during the quarter ended March 31, 2024 that have materially affected, or are reasonably

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

Other than the remediation

efforts related to the design and implementation of sufficient controls around our customer contracts described above, there were no

changes in our internal control over financial reporting during the quarter ended June 30, 2024 that have materially affected, or are

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

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