Company: IVHI
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001683168-25-003408
Chunk: 43

Company: Invech Holdings, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 43
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 CFO,
as appropriate, to allow for accurate and timely decisions regarding required disclosure.

Disclosure controls and procedures
were not effective due primarily to a material weakness in the segregation of duties in the Company’s internal control of financial
reporting as discussed below.

Internal Control over
Financial Reporting

Management is responsible
for establishing and maintaining adequate internal control over financial reporting for the Company (including its consolidated subsidiaries)
and all related information appearing in our Annual Report on Form 10-K. Our internal control over financial reporting is designed to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with accounting principles generally accepted in the United States of America

 16 

Management conducted an evaluation
of the design and operation of our internal control over financial reporting as of the end of the period covered by this report, based
on the criteria in a framework developed by the Company’s management pursuant to and in compliance with the criteria established.
This evaluation included review of the documentation of controls, evaluation of the design effectiveness of controls, walkthroughs of
the operating effectiveness of controls and a conclusion on this evaluation. Based on this evaluation, management has concluded that our
internal control over financial reporting was not effective, because management identified a material weakness in the Company’s
internal control over financial reporting related to the segregation of duties as described below.

While the Company does adhere
to internal controls and processes that were designed, it is difficult with a very limited staff to maintain appropriate segregation of
duties in the initiating and recording of transactions, thereby creating a segregation of duties weakness. Due to: (i) the significance
of segregation of duties to the preparation of reliable financial statements; (ii) the significance of potential misstatement that could
have resulted due to the deficient controls; and (iii) the absence of sufficient other mitigating controls, we determined that this control
deficiency resulted in more than a remote likelihood that a material misstatement or lack of disclosure within the annual or interim financial
statements may not be prevented or detected.

Management’s
Remediation Initiatives

Management has evaluated,
and continues to evaluate, avenues for mitigating our internal controls weaknesses, but mitigating controls to completely mitigate internal
control weaknesses have been deemed to be impractical and prohibitively costly, due to the size of our organization at the current time.
Management expects to continue to use reasonable care in following and seeking improvements to effective internal control processes that
have been and continue to be in use at the Company.