Company: MGNO
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000927089-25-000061
Chunk: 32

Company: Magnolia Bancorp, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 32
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 procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Based upon that evaluation, as discussed below, our chief executive officer and chief financial officer have concluded that, as of December 31, 2024, our disclosure controls and procedures were not effective because of the material weaknesses in internal control over financial reporting described below.

Notwithstanding such material weaknesses in internal control over financial reporting, our management, including our chief executive officer and chief financial officer, has concluded that our statements of financial condition as of and for the years ended December 31, 2024 and 2023 and the statements of operations, changes in retained earnings, and cash flows for each of the years then ended, present fairly, in all material respects, our financial condition, results of our operations and our cash flows for the periods presented in this Annual Report, in conformity with U.S. GAAP.

(b) Management’s Annual Report on Internal Control over Financial Reporting

Management of Magnolia Bancorp is responsible for establishing and maintaining an adequate system of internal control over financial reporting. An adequate system of internal control encompasses the processes and procedures that have been established by management to:

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      Maintain records that accurately reflect Magnolia Bancorp’s transactions; 

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      Prepare financial statements and footnote disclosures in accordance with GAAP that can be relied upon by external users; 

      ● 
      Prevent and detect unauthorized acquisition, use or disposition of Magnolia Bancorp’s assets that could have a material effect of the financial statements. 

Management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of Magnolia Bancorp’s controls over financial reporting based on the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in 2013. Based on our evaluation under the framework in Internal Control – Integrated Framework, management concluded that Magnolia Bancorp’s internal control over financial reporting was not effective as of December 31, 2024. Furthermore, during our assessment of our internal controls for 2024, we determined that the material weaknesses identified in the