The Company now believes that the top result of these types of lawsuits and proceedings will not, independently, or in the mixture, have a content adverse result on our consolidated fiscal situation, results of operations or dollars flows. The best benefits of promises and litigation are not able to be predicted with certainty. Despite the discovered content weaknesses, administration concluded that the consolidated economic statements included in this Annual Report on Form 10-K existing relatively, in all materials respects, the money position, effects of functions and funds flows for the durations disclosed in conformity with GAAP. The Company has evaluated subsequent activities as a result of the submitting of this Form 10-K, and determined that there have been no occasions that have occurred that would demand adjustments to our disclosures in the consolidated economic statements. On January 16, 2018 and December 3, 2019, the Company and ICG amended the authentic terms of the warrants so that the warrants routinely lengthen for added two-12 months periods if the warrants are not exercised by their expiration day, as the expiration date may perhaps be extended from time to time. This section's plot summaries could be much too extended or excessively in-depth.

We be expecting to conclude these remediation initiatives through the fiscal calendar year finished September 30, 2022. We continue on to consider screening of our internal management policies and methods, together with evaluating internal and external means that might be out there to complete these responsibilities, but do not know when these tasks will be done. Frazier & Deeter, the Company’s unbiased registered general public accounting organization, has issued an unqualified feeling on our consolidated financial statements as of and for the yr ended September 30, 2021. They were being not engaged to conduct, and did not accomplish, an audit of inside manage more than financial reporting. Over time, controls may well turn out to be inadequate since of adjustments in conditions or deterioration in the degree of compliance with procedures or techniques. On April 25, 2018, ASH delivered to the Seller the ApplianceSmart Note in the Original Principal Amount, as these kinds of amount of money might be modified per the phrases of the ApplianceSmart Note. On July 10, 2020, the Company executed a promissory observe (the "Spriggs Promissory Note") in favor of Spriggs Investments LLC ("Spriggs Investments"), a confined liability organization whose sole member is Rodney Spriggs, the President and Chief Executive Officer of Vintage Stock, Inc., a wholly-owned subsidiary of the Company, that memorializes a personal loan by Spriggs Investments to the Company in the preliminary principal amount of money of $2. million (the "Spriggs Loan").

The SEC Complaint alleges monetary, disclosure and reporting violations in opposition to the Company below Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5. The SEC Complaint also alleges numerous statements in opposition to the executive officer underneath Sections 13(a), 13(b)(2)(A), 13(b)(2)(B) and 13(b)(5) of the Exchange Act and Rules 12b-20, 13a-1, 13a-13, 13a-14, 13b2-1, and 13b2-2. The SEC seeks long lasting injunctions and civil penalties from the Company. We carried out an evaluation, beneath the supervision, and Sex With Sister the participation of our management, which include our principal govt officer and principal economic officer, of the success of our disclosure controls and procedures (as outlined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based on that analysis, our principal govt officer and principal monetary officer concluded that, as of September 30, 2021, the period lined in this report, our disclosure controls and treatments were being not productive to assure that information and facts needed to be disclosed in stories submitted beneath the Securities Exchange Act of 1934 is recorded, processed, summarized and described within the demanded time durations and is gathered and communicated to our administration, which includes our principal govt officer and principal financial officer, as correct to permit timely selections regarding needed disclosure due to substance weaknesses in internal management in excess of money reporting even further explained down below.

September 30, 2016, specified disclosures similar to executive compensation, and its prior acquisition of ApplianceSmart. Set forth beneath are the respective principal occupations or short work histories of each of our directors and executive officers and the durations during which every single has served as a director of the Company, as effectively as for our named govt officers. Tyler Sickmeyer. Mr. Sickmeyer has served as a member of the Audit Committee considering that August 2014. In August 2008, Mr. Sickmeyer established and due to the fact that time has continued serving as the CEO of Fidelitas Development, a full-company advertising and marketing firm that focuses on producing an improved return on investment fee for its clients. Dennis (De) Gao. Mr. Gao has served as a director of our Company and as a member of the Audit Committee since January 2012. In July 2010, Mr. Gao co-founded and became the CFO at Oxstones Capital Management, a privately held company and a social and philanthropic business, serving as an strategy trade for the global neighborhood.