Sky Harbour Group Corp 10-Q/A

ITEM 4. CONTROLS AND PROCEDURES   Evaluation of Disclosure Controls and Procedures   Disclosure controls and procedures are controls and other procedures that are designed to ensure that 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. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in company reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.   As required by Rules 13(a)-15(e) and 15(d)-15(e) under the Exchange Act, at the time the Original Quarterly Report was filed, our Chief Executive Officer and Chief Financial Officer carried out evaluations of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2023 and concluded that our disclosure controls and procedures were effective. After filing the Original Quarterly Report, the Company identified a material weakness in internal control over financial reporting as described below. As a result, our Chief Executive Officer and Chief Financial Officer have re-evaluated the disclosure controls and procedures and concluded that our disclosure controls and procedures (as defined in Rules 13(a)-15(e) and 15(d)-15(e) under the Exchange Act) were not effective as of June 30, 2023 due to the material weakness in internal control over financial reporting as described below.   Material Weakness in Internal Control over Financial Reporting   A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. Management identified a material weakness in our internal control over financial reporting as of June 30, 2023 that prevented us from identifying the misclassification within the statement of cash flows and gave rise to the necessity to file this Form 10-Q/A. Specifically, the Company’s internal control structure did not have an appropriate control to review the evaluation of the classification of certain cash flows in accordance with applicable accounting guidance at each reporting period.   Remediation Plan   With oversight from the Audit Committee and input from management, the Company has begun designing and implementing changes in processes and controls to remediate the material weakness described above and to enhance our internal control over financial reporting, including a control to review non-standard manual adjustments to the statement of cash flows in accordance with applicable accounting guidance.   Changes in Internal Control over Financial Reporting   Other than described above, there have been no changes in our internal control over financial reporting during the quarter ended June 30, 2023 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.   31 Table of Contents   PART II – OTHER INFORMATION   ITEM 1. LEGAL PROCEEDINGS   The Company is not currently a party to any material legal proceedings.