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Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC.
−Removed: Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were ineffective as of September 30, 2022 due to the material weakness identified during the year ended December 31, 2021.
−Removed: The material weakness related to ineffective controls over accounting for non-routine and/or complex transactions.
−Removed: To address this material weakness, with the oversight of our audit committee, we are evaluating our controls over accounting for non-routine and/or complex transactions and are in the process of implementing additional controls in an effort to timely identify misstatements and strengthen our overall control environment as well as continuing to assess our accounting personnel staffing requirements.
+Added: Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were ineffective as of March 31, 2023 due to the material weaknesses previously disclosed in our 2022 Annual Report.
+Added: Material Weaknesses in Internal Control Over Financial Reporting
+Added: In connection with the evaluation of the Company’s internal control over financial reporting as described above, management has identified the following deficiencies in our control environment in the current period that constituted material weaknesses in the Company’s internal control over financial reporting as of December 31, 2022:
+Added: • Ineffective controls over segregation of duties related to the review of manual journal entries and account reconciliations.
+Added: Specifically, certain personnel had the ability to both (a) create and post journal entries within our general ledger system, and (b) review account reconciliations.
+Added: • Ineffective information technology general controls related to administrative user access to the Company’s information systems that are relevant to the preparation of financial statements to ensure appropriate segregation of duties and to adequately restrict access to financial applications and data.
+Added: In addition, the following material weakness previously reporting in our 2021 Annual Report continued to exist as of December 31, 2022.
+Added: • Ineffective controls over the accounting for complex transactions.
+Added: Notwithstanding we did not identify any material misstatements to the consolidated financial statements and there were no changes to previously released financial results as a result of these material weaknesses, the control deficiencies created a
+Added: reasonable possibility that a material misstatement to the consolidated financial statements would not be prevented or detected on a timely basis.
+Added: Remediation Efforts to Address the Material Weaknesses Existing in the Current Period
+Added: • During the fourth quarter of 2022, management implemented a remediation plan to update its design and implementation of controls to remediate the deficiency related to manual journal entries and enhance the Company's internal control environment.
+Added: The Company has designed and implemented controls to prevent or detect a material misstatement resulting from certain personnel with the ability to create and post journal entries within the Company’s general ledger system.
+Added: Management has designed and implemented controls over the review of all manual journal entries initiated and approved to ensure appropriate segregation of duties.
+Added: • Management has initiated a remediation plan to enhance the design of information technology general controls related to administrative user access by restricting privileged access, implementing controls over user access and enforcing proper segregation of duties within IT environments based on roles and responsibilities.
+Added: • Management is enhancing processes and designing and implementing additional internal controls to properly account for complex transactions.
+Added: Additionally, the Company has hired additional accounting personnel and implementing training of new and existing personnel on proper execution of designed control procedures.
+Added: The material weaknesses will not be considered remediated until the controls have operated effectively, as evidenced through testing, for a sufficient number of instances.
Any failure to implement and maintain the improvements in the controls over our financial reporting, or difficulties encountered in the implementation of these improvements in our controls, could cause us to fail to meet our reporting obligations.
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Changes in Internal Control over Financial Reporting
−Removed: Other than the material weakness described above, there were no changes in our internal control over financial reporting during the quarter ended September 30, 2022 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
+Added: Management continues to remediate previously disclosed material weaknesses.
+Added: There were no changes in our internal control over financial reporting during the quarter ended March 31, 2023 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II — 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.