What changed in this filing

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Item 4. Controls and Procedures

2024-11-04 compared with 2024-08-05 · 27 added, 38 removed, 4 unchanged (94% of the section changed)

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.

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

Therefore, even those

systems determined to be effective can provide only reasonable assurance of achieving their control objectives.

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.

(a) Evaluation of Disclosure Controls and Procedures

Our management, with the participation

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

Officers”), 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.

Because of its inherent limitations, internal control

over financial reporting may not prevent or detect misstatements.

Therefore, even those systems determined to be effective can provide

only reasonable assurance of achieving their control objectives.

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.

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

As previously reported, we

identified a material weakness related to the review and evaluation of wholesale customer contracts, specifically as it relates to variable

consideration, including wholesale warranty obligations.

Specifically, we did not design and maintain effective controls over the review

and evaluation of the accounting relating to contract terms agreed upon with our wholesale customers and the identification and calculation

of the related wholesale accrued warranty liabilities.

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 .

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

of September 30, 2024 at the reasonable assurance level.

(b) Changes in Internal Controls Over Financial

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.

There were no changes in our

internal control over financial reporting during the quarter ended September 30, 2024 that have materially affected, or are reasonably

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

OTHER INFORMATION

LEGAL PROCEEDINGS

The 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