Company: CBLO
Filing Date: 2025-02-03
Form Type: 10-Q
Source: 0001599916-25-000009
Chunk: 9

Company: C2 Blockchain, Inc.
Filing Date: 2025-02-03
Form: 10-Q
Item: Item 1
Chunk 9
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    ITEM 4
    CONTROLS AND PROCEDURES

Management’s Report on Disclosure Controls
and Procedures

We maintain disclosure controls and procedures
that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of
1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange
Commission's rules and forms, and that such information is accumulated and communicated to our management, including our chief
executive officer and our chief financial officer, Levi Jacobson, (who is acting as our principal executive officer, principal
financial officer and principle accounting officer) to allow for timely decisions regarding required disclosure.

As of December
31, 2024, we carried out an evaluation, under the supervision of our chief executive officer, who also serves as our chief
financial officer, of the effectiveness of the design and the operation of our disclosure controls and procedures. Our sole officer
concluded that the disclosure controls and procedures were not effective as of the end of the period covered by this report due to
material weaknesses identified below. 

The matters involving internal controls and procedures
that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: domination
of management by a single individual without adequate compensating controls, lack of a majority of outside directors on board of directors,
resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; inadequate segregation
of duties consistent with control objectives, and lack of an audit committee. These material weaknesses were identified by our Chief
Executive Officer who also serves as our Chief Financial Officer in connection with the above evaluation.

Inherent limitations on effectiveness of controls

Internal control over financial reporting has inherent
limitations which include but is not limited to the use of independent professionals for advice and guidance, interpretation of existing
and/or changing rules and principles, segregation of management duties, scale of organization, and personnel factors. Internal control
over financial reporting is a process which involves human diligence and compliance and is subject to lapses in judgment and breakdowns
resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management
override. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a
timely basis, however these inherent limitations are known features of the financial reporting process and it is possible to design into
the process safeguards to reduce, though not eliminate, this risk. Therefore, even