Item 4. Controls and Procedures
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls
and procedures designed to provide reasonable assurance that information required to be disclosed in 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
and accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, or persons performing
similar functions, as appropriate to allow timely decisions regarding required disclosures.
We carried out an evaluation,
under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer,
of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)
under the Exchange Act. Based upon our evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of June 30,
2025 our disclosure controls and procedures ensuring that information that we are required to disclose in reports that we file or submit
under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, were
effective.
Remediation of a Material Weakness in Internal Control over Financial
Reporting
As disclosed in Item 9A, Controls
and Procedures of our 2024 Annual Report, our management identified the following material weaknesses in our internal control over
financial reporting, which is observed in many small companies with a small number of accounting and financial reporting staff:
• Inadequate design of
user access provisioning/deprovisioning controls and inadequate segregation of duties on certain controls or processes, related to our
information technology general controls (ITGC).
Management has discussed this
matter and developed a remediation plan that included transitioning certain administrative privileges to independent user groups outside
of the finance function in order to enhance segregation of duties. In addition, the team has implemented a quarterly user access review
process to ensure that system permissions remain appropriate and aligned with current roles and responsibilities. The final phase of our
remediation plan was completed in the second quarter of 2025.
Changes in Internal Control over Financial
Reporting
Other than the remediation
efforts described above, there was no change in our internal controls over financial reporting that occurred during the quarter ended
June 30, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Inherent Limitations over Internal Controls
Internal control over financial
reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations, including
the possibility of human error and circumvention by collusion or overriding of controls. Accordingly, even an effective internal control
system may not prevent or detect material misstatements on a timely basis. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance
with the policies or procedures may deteriorate.
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PART II. OTHER INFORMATION
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.