Item 4.01 Changes in Registrant's Certifying Accountant
On
CONTROLS AND PROCEDURES
Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures.
Under the supervision and with the participation of our principal executive
officer and principal financial officer, we conducted an evaluation of our
disclosure controls and procedures, as such term is defined under Rule 13a-15(e)
promulgated under the Securities Exchange Act of 1934, as amended (the Exchange
Act. As a result of this evaluation, we identified material weaknesses in our
internal control over financial reporting as of
Management's Annual Report on Internal Control Over Financial Reporting.
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) and 15d-(f) under the Exchange Act. Our internal control over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with U. S. generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that:
i. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;
ii. provide reasonable assurance that transactions are recorded as necessary to permit the preparation of our consolidated financial statements in accordance with U. S. generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and
iii. provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the consolidated financial statements.
Management assessed the effectiveness of the Company's internal control over
financial reporting as of
Management has concluded that our internal control over financial reporting was
not effective as
Management's assessment identified several material weaknesses in our internal control over financial reporting. These material weaknesses include the following:
? Lack of appropriate segregation of duties;
? Limited capability to interpret and apply accounting principles generally
accepted in
? Lack of formal accounting policies and procedures that include multiple levels of review; and
? Failure to properly record transactions related to asset acquisitions, derivative liabilities, and equity based payments to employees and non-employees.
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