Item 4. Controls and Procedures
Item 4. Controls and Procedures
 
Evaluation of Disclosure Controls and
Procedures
 
Our management is responsible for establishing and maintaining
adequate internal control over financial reporting as defined in
Rule 13a-15(f) under the Exchange Act. Our management assessed the
effectiveness of our internal control over financial reporting as
of September 30, 2021. In making this assessment, our management
used criteria issued by the Committee of Sponsoring Organizations
of the Treadway Commission in Internal Control Over Financial
Reporting – Guidance for Smaller Public Companies.
 
During our assessment of the design and the effectiveness of
internal control over financial reporting as of September 30, 2021,
management identified the following material weaknesses:
 
 
●
While we have processes in place, there are no formal written
policies and procedures related to certain financial reporting
processes;
 
 
 
 
●
There is no formal documentation in which management specified
financial reporting objectives to enable the identification of
risks, including fraud risks;
 
 
 
 
●
Our Board of Directors consisted of four members, however we lack
the resources and personnel to implement proper segregation of
duties or other risk mitigation systems.
 
A material weakness is “a significant deficiency, or a
combination of significant deficiencies, that result in more than a
remote likelihood that a material misstatement of the annual or
interim financial statements will not be prevented or detected by
us in a timely manner.” A significant deficiency is a
deficiency or a combination of deficiencies, in internal control
over financial reporting that is less severe than a material
weakness, yet important enough to merit attention by those
responsible for oversight of the registrant’s financial
reporting.
 
We intend to gradually improve our internal control over financial
reporting to the extent that we can allocate resources to such
improvements. We intend to prioritize the design of our internal
control over financial reporting starting with our control
environment and risk assessments and ending with control
activities, information and communication activities, and
monitoring activities. Although we believe the time to adapt in the
next year will help position us to provide improved internal
control functions into the future, in the interim, these changes
caused control deficiencies, which in the aggregate resulted in a
material weakness. Due to the existence of these material
weaknesses, our management, including our Chief Executive Officer
and Chief Financial Officer, concluded that our internal control
over financial reporting was not effective as of September 30,
2021.
 
This annual report does not include an attestation report of the
Company’s independent registered public accounting firm
regarding internal control over financial reporting.
Management’s report was not subject to attestation by the
Company’s independent registered public accounting firm
pursuant to the rules of the SEC that permit smaller reporting
companies to provide only the management’s report in this
annual report.
 
Changes in Internal Control Over Financial
Reporting
 
During the quarter ended September 30, 2021, there were no changes
in our internal control over financial reporting that have
materially affected, or are reasonably likely to materially affect,
our internal control over financial reporting.
 
 
26
Table of Contents
 
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.