3 unchanged sentences
Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
−Removed: Based on that evaluation, the Company’s principal executive officer and principal financial officer have concluded that, as a result of the material weakness in our internal control over financial reporting related to the Company’s inventory process as described in Part II, Item 9A of our Annual Report on Form 10-K for the year ended December 31, 2023 (the “Inventory Material Weakness”), the Company’s disclosure controls and procedures were not effective as of September 30, 2024.
+Added: Based on that evaluation, the Company’s principal executive officer and principal financial officer have concluded that, as a result of the material weakness in our internal control over financial reporting related to the Company’s inventory process as described in Part II, Item 9A of our Annual Report on Form 10-K for the year ended December 31, 2024, the Company’s disclosure controls and procedures were not effective as of March 31, 2025.
Remediation Plan for Material Weakness
−Removed: The Company, with oversight from its Audit Committee, is in the process of implementing measures designed to ensure that control deficiencies contributing to the material weakness are remediated, such that these controls are designed, implemented, and operating effectively.
−Removed: The remediation plan includes, but is not limited to, the following:
−Removed: • hiring additional personnel, both internal and external, with the necessary experience and skill to manage supply chain and inventory operations ;
−Removed: • enhancing controls, including the implementation of manual or automated processes over the physical existence of inventory, identification of excess and obsolete inventory, and authorization of inventory pricing and purchase arrangements.
−Removed: Although the Company believes that these actions will remediate the material weakness, additional time is required to test such actions and to complete the design, implementation, and review its controls to demonstrate the effectiveness of the Company’s remediation efforts.
−Removed: The material weakness cannot be considered remediated until the applicable remedial controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.
+Added: The Company, with oversight from our Audit Committee, has made progress on its remediation plan specific to the material weakness, with the completion of the following remediation activities as of March 31, 2025:
+Added: • The Company appointed new individuals in key roles including the Chief Supply Chain and Operations Officer and other operational leadership roles;
+Added: • Enhanced training and operational guidelines resulting in the successful completion of the Company’s annual physical inventory counts;
+Added: • Designed and implemented controls with regards to excess and obsolete inventory and inventory pricing and purchase arrangements.
+Added: The Company has implemented the remediation steps detailed above;
+Added: however, the Company is unable to conclude that these controls are operating effectively until the applicable controls operate for a sufficient period of time and are subject to testing to conclude that remediation has been achieved.
+Added: The Company anticipates that remediation activities will be completed during fiscal year 2025.
Changes in Internal Control Over Financial Reporting
−Removed: There have been no changes in our internal control over financial reporting (as such term is defined in the Exchange Act) that occurred during the three months ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
+Added: There have been no changes in our internal control over financial reporting (as such term is defined in the Exchange Act) that occurred during the three months ended March 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II— OTHER INFORMATION
Legal Proceedings.
−Removed: For a description of our material pending legal proceedings, see Note 10, Commitments and Contingencies, to our condensed consolidated financial statem ents included in Part I, Item 1 of this Quarterly Report on Form 10-Q .
+Added: For a description of our material pending legal proceedings, see Note 6, Commitments and Contingencies, to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
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.