What changed in this filing

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Item 4. Controls and Procedures

2021-02-22 compared with 2020-11-16 · 32 added, 8 removed, 16 unchanged (71% of the section changed)

1 unchanged sentence

Evaluation of Disclosure Controls and Procedures.

As of the end of the period covered by this report, we conducted

an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer of

our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act).

of the end of the period covered by this Quarterly Report, we conducted an evaluation as required by Rule 13a-15(b) and Rule 15d-15(b)

of the Exchange Act, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer

of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act).

Based upon this

evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are

effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act

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

is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer,

as appropriate, to allow timely decisions regarding required disclosure.

evaluation, our Chief Executive Officer and Chief Financial Officer concluded that due to the material weakness described below,

our disclosure controls and procedures were not effective at a reasonable assurance level as of the end of the period covered

by this Report.

system of internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability

of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted

accounting principles.

A material weakness is any deficiency, or combination of deficiencies, in internal control over financial

reporting, such that there is a reasonable possibility that a material misstatement of our company’s annual or interim financial

statements will not be prevented or detected on a timely basis.

upon this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our internal control over financial

reporting was not effective as of the period covered by this Quarterly Report.

the initial filing of our Form 10-K for the year ended March 31, 2020, our Forms 10-Q for the three months ended June 30, 2020

the six months ended September 30, 2020, management identified a material weakness in our internal controls over financial reporting

that existed as of the dates of those filings related to the design and implementation of control activities intended to mitigate

the risk that transactions be incorrectly accounted for in accordance with generally accepted accounting principles.

Specifically,

we did not maintain effective internal controls over the accounting for costs related to our co-op promotion allowances, pursuant

to ASC 606, Revenue from Contract with Customers, as we incorrectly recorded these allowances as selling expenses when they should

be recorded as a reduction in net sales.

This material weakness resulted in material misstatements to the consolidated statements

of operations for the aforementioned periods.

The consolidated balance sheets, statement of cash flows, statement of shareholders’

equity, net income or loss for the affected periods remained unaffected.

for Material Weakness in Internal Control over Financial Reporting

Company’s management has begun to design and implement certain remediation measures to address the above-described material

weakness and enhance the Company’s internal control in order to remediate this material weakness.

As part of our remediation

measures, the Company has identified and will implement plans to enhance the Company’s process and controls including ensuring

adequate resources and use of accounting experts for guidance in the application of new accounting standards.

Changes in Internal Controls.

12 unchanged sentences

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