Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
On
Subsequent to the filing of the Original Form 10-K, management reviewed its methodology for calculating its reserves for obsolete inventory.
During this review, management identified changes related to the Company's reserves for obsolete inventory that it deemed appropriate. The reserves reflected in the Company's Original Form 10-K relied primarily on estimates developed by management, which were based on historic and institutional knowledge and judgements as to the potential for obsolescence for items deemed at risk. Upon management's review, it was determined a systematic method of evaluation, which utilized historical data, including sales data and component parts usage, as well as product life cycles, trends and judgement, is more accurate. This resulted in changes to the Company's reserves for obsolescence for fiscal years 2021, 2020 and 2019. The effects of these changes on the financial statements for these periods are shown in Exhibit 4.0.
Management has determined that a material weakness existed in the Company's
internal control over financial reporting, and that disclosure controls and
procedures were not effective at
The Company has discussed with Baker Tilly the matters related to the restatement as disclosed in this Item 4.02.
Item 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits:
4.0 Effects of Restatement 10 4 Cover Page Interactive Data File (formatted as Inline XBRL).
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