Company: KITTW
Filing Date: 2025-04-15
Form Type: 10-Q/A
Source: 0001849820-25-000099
Chunk: 62

Company: Nauticus Robotics, Inc.
Filing Date: 2025-04-15
Form: 10-Q/A
Chunk 62
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, evaluate and hire qualified accounting personnel to prepare and report financial information in accordance with GAAP;

• Identify gaps in our skills base and the expertise of our staff required to meet the financial reporting requirements of a public company; and

• Continue to develop policies and procedures on internal control over financial reporting and monitor the effectiveness of operations on existing controls and procedures

Our remediation activities are ongoing and are subject to continued management review supported by ongoing design and testing of our framework of internal controls over financial reporting. Due to the nature of the remediation process and the need for sufficient time after implementation to evaluate and test the design and effectiveness of the controls, no assurance can be given as to the timing for completion of remediation

Newly identified material weakness . In Q4 2024, we identified a new material weakness in our internal controls over accounting for significant and complex transactions related to prior periods which resulted in restatements for Q1, Q2 and Q3 2024. The material weakness stemmed from lack of strong technical accounting reviews of these transactions.

Remediation Plan . The company is implementing a formal Significant and Complex Transaction review process that will identify transactions that should be reviewed by 3 rd party experts to ensure proper treatment. This will be implemented by the end of 2025.

Changes in internal control over financial reporting. During the fiscal quarter ended June 30, 2024, except as described above in "Remediation Plan" there were no other changes in our internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) of the Exchange Act that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent limitation on the effectiveness of internal control. The effectiveness of any system of internal control over financial reporting, including ours, is subject to inherent limitations, including the exercise of judgment in designing, implementing, operating, and evaluating the controls and procedures, and the inability to eliminate misconduct completely. Accordingly, in designing and evaluating the disclosure controls and procedures, management recognizes that any system of internal control over financial reporting, including ours, no matter how well designed and operated, can only provide reasonable, not absolute assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. Moreover, projections of any evaluation of effectiveness to