Company: MGNO
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000927089-25-000061
Chunk: 79

Company: Magnolia Bancorp, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 4
Chunk 79
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, 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:

      ● 
      Maintain records that accurately reflect Magnolia Bancorp’s transactions; 

      ● 
      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 prospectus dated November 8, 2024, related to 2023 and 2022 as described below remain material weaknesses until the applicable controls operate for a sufficient period of time for management to test the results for operating effectiveness. We intend to continue to provide testing and reporting of the internal controls to ensure operating effectiveness. We believe these actions and any other that we may determine need to be implemented, when complete, will remediate the control weaknesses.

(c) No change in our internal control