Item 4. Controls and Procedures
Item 4. Controls and Procedures.
Disclosure Controls
and Procedures
As of December 31,
2015, the company carried out an evaluation, under the supervision of and with the participation of management, including our Company’s
chief executive officer and chief financial officer, of the effectiveness of the design and operation of our Company’s disclosure
controls and procedures under the 2013 COSO framework. Based on the foregoing, the chief executive officer and chief financial
officer concluded that our Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under
the Securities Exchange Act of 1934) were ineffective in timely alerting them to information required to be included in the Company’s
periodic Securities and Exchange Commission filings.
Changes in Internal
Control over Financial Reporting
Management continues
to focus on internal control over financial reporting. As of December 31, 2015, the Company intends to further implement
the following remedial initiatives:
· Improve the design and documentation related
to multiple levels of review over financial statements included in our SEC filings;
· Expand the design and assessment test
work over the monitoring function of entity level controls;
· Enhance documentation retention policies
over test work related to continuous management assessments of internal control effectiveness; and
· Expand documentation practices and policies
related to various key controls to provide support and audit trials for both internal management assessment as well as external
auditor testing.
There were no changes in the Company’s internal control
over financial reporting (as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934) during the six months ended December
31, 2015 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over
financial reporting, except as disclosed above.
23
Part II Other Information
Item 1. Legal Proceedings.
None.
Item 1A. Risk Factors.
Not applicable.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
(a) None
(b) None
(c) None
Item 3. Defaults upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not applicable.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.