What changed in this filing

/stocks — the workspaceLOADING

Item 4. Controls and Procedures

2020-05-12 compared with 2019-11-05 · 44 added, 22 removed, 6 unchanged (92% of the section changed)

and Procedures

Controls and Procedures

controls are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports

filed under the Exchange Act, such as this Form 10-Q, is recorded, processed, summarized and reported within the time periods

specified in the SEC’s rules and forms.

Disclosure Controls and Procedures

Disclosure controls

are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed

under the Exchange Act, such as this Form 10-Q, is recorded, processed, summarized and reported within the time periods specified

in the SEC’s rules and forms.

Disclosure controls are also designed with the objective of ensuring that such information

is accumulated and communicated to our management, including the Principal Executive Officer and Principal Financial Officer,

as appropriate, to allow timely decisions regarding required disclosure.

is accumulated and communicated to our management, including the Principal Executive Officer and Principal Financial Officer, as

appropriate, to allow timely decisions regarding required disclosure.

Internal controls are procedures which are designed with

2 unchanged sentences

statements in conformity with GAAP.

connection with the preparation of this Form 10-Q, management, with the participation of our Principal Executive Officer and Principal

Financial Officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined

in Exchange Act Rule 13a-15(e) and 15d-15(e)).

Based upon that evaluation, our Principal Executive Officer and Principal Financial

Officer concluded that, as of the end of the period covered by this Form 10-Q, our disclosure controls and procedures were effective.

in Internal Controls

There have been no

changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d)

of Rule 13a-15 or 15d-15 under the Exchange Act that occurred during the quarter ended September 30, 2019 that has materially

affected, or is reasonably likely to materially affect, our internal control over financial reporting.

of the Effectiveness of Control

control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives

of the control system are met.

Because of the inherent limitations of any control system, no evaluation of controls can provide

absolute assurance that all control issues, if any, within a company have been detected.

II—OTHER INFORMATION

In connection

with the preparation of this Form 10-Q, management, with the participation of our Principal Executive Officer and Principal

Financial Officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as

defined in Exchange Act Rule 13a-15(e) and 15d-15(e)).

Based upon that evaluation, our Principal Executive Officer and

Principal Financial Officer concluded that, as of the end of the period covered by this Form 10-Q, our disclosure controls

and procedures were not effective.

Changes in Internal Controls

Remediation Measures

connection with our annual report on Form 10-K for the year ended December 31, 2019, we reported a material weakness in our internal

controls over financial reporting resulting from the determination following initial audit procedures that the documentation

underlying the preparation of forward projections, which included copies of customer contracts underlying the basis of projecting

revenues and support for the projected cost structures associated with determining the fair value of the Sysorex note as of December

31, 2019, was not supportable thereby requiring material adjustments to be made to the carrying value of the note as determined

by management as of December 31, 2019.

To address the material weakness, during February 2020, we have enhanced our internal technical

accounting capabilities by engaging and using third-party advisors to assist in areas requiring specialized technical accounting

expertise, including with respect to designing the procedures and processes associated with assessing the fair value of our equity

and debt instruments.

While we believe that these actions will be sufficient to remediate the material weakness, it will

not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded,

through testing, that these controls are operating effectively.

We expect that the remediation of this material weakness will

be completed by the end of second quarter 2020.

Except as described above, there have been no changes in our

internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15

or 15d-15 under the Exchange Act that occurred during the quarter ended March 31, 2020 that has materially affected, or is reasonably

likely to materially affect, our internal control over financial reporting.

The Company’s management determined there were no material changes needed to internal controls as

a result of the COVID-19 pandemic.

Limitations of the Effectiveness of Control

A control system, no

matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control

system are met.

Because of the inherent limitations of any control system, no evaluation of controls can provide absolute assurance

that all control issues, if any, within a company have been detected.

PART II—OTHER INFORMATION

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.

What changed 10-Q

Item 4. Controls and Procedures