Item 4. Controls and Procedures
ITEM
4. CONTROLS AND PROCEDURES
Evaluation
of Disclosure Controls and Procedures
Our
Chief Executive Officer (principal executive officer), who is also our Chief Financial Officer (principal financial officer),
reviewed the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report and concluded
that as of June 30, 2019, (i) the Company’s disclosure controls and procedures were not effective to ensure that material
information relating to the Company is recorded, processed, summarized, and reported within the time periods specified in the
rules and forms of the Securities and Exchange Commission (the “Commission”), and (ii) the Company’s controls
and procedures have not been designed to ensure that information required to be disclosed by the Company in the reports that it
files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to the Company’s
management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate
to allow timely decisions regarding required disclosure.
Changes
in Internal Controls Over Financial Reporting
There
were no changes in our internal control over financial reporting that occurred during the fiscal quarter covered by this report
that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Inherent
Limitations on Effectiveness of Controls
The
Company’s management does not expect that its disclosure controls or its internal control over financial reporting, when
and if effective, will prevent or detect all error and all fraud. A control system, no matter how well designed and operated,
can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control
system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to
their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute
assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within
the Company have been detected. These inherent limitations include the realities that judgments in decision making can be faulty
and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of
some persons, by collusion of two or more people, or management override of the controls. The design of any system of controls
is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will
succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because
of changes in conditions or deterioration in the degree of compliance with policies or procedures.
27
PART
II – OTHER INFORMATION
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