Company: IPAR
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001753926-25-000424
Chunk: 210

Company: INTERPARFUMS INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 210
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 maintaining adequate internal control over
financial reporting, as defined in Rule 13(a)-15(f) under the Securities
Exchange Act of 1934, to provide reasonable assurance regarding the reliability
of our financial reporting and the preparation of financial statements for
external purposes in accordance with U.S. generally accepted accounting
principles (“GAAP”). 

Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to
the risk that controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may
deteriorate. A material weakness is a deficiency, or combination of
deficiencies, in internal control over financial reporting, such that there is
a reasonable possibility that a material misstatement of the Company’s annual
or interim financial statements will not be prevented or detected on a timely
basis.

With
the participation of the Chief Executive Officer and the Chief Financial
Officer, our management conducted an evaluation of the effectiveness of our
internal control over financial reporting based on the framework and criteria
established in Internal Control –
Integrated Framework (2013), issued by the Committee of Sponsoring
Organizations of the Treadway Commission. Based on this evaluation, our
management has concluded that our internal control over financial reporting was
not effective as of December 31, 2024, due to the material weaknesses
identified below.

The Company does not have an annual
risk assessment process sufficiently designed to identify the risks that could
impact the Company’s consolidated financial statements. This includes processes to review any
previously-recognized risks and identify any potential new risks that could
have a material impact on the Company. As a result, the Company could not
properly assess if the key controls in place were sufficient to mitigate the risks
of material misstatement and the Company could not adequately provide oversight
over the testing of management’s internal control over financial reporting. 

The Company did not design and
maintain an effective control environment commensurate with its financial
reporting requirements. Specifically, the Company did not maintain sufficient
documentation to evidence that controls have operated as designed with respect
to key financial statement accounts and assertions.
The Company did not design and
maintain effective information technology general controls related to user
access at our Interparfums SA subsidiary, which limited management’s ability to
rely on technology-dependent controls relevant to the preparation of