Item 4. CONTROLS AND PROCEDURES
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Item 4. CONTROLS AND PROCEDURES
CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of management, including
our principal executive officer and
principal financial officer, we evaluated the effectiveness of the design and operation of our disclosure controls and
procedures as of the end of the period covered by this quarterly report
as such term is defined in Rules 13a-15(e)
and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”).
Based
on this evaluation, our management, including our principal executive
officer and principal financial officer,
concluded that our disclosure controls and procedures were effective as of September 28,
2024, to ensure that all
material information required to be disclosed by us in reports that we file
or submit under the Exchange Act is
accumulated and communicated to them as appropriate to allow timely
decisions regarding required disclosure and
that all such information is recorded, processed, summarized and reported
within the time periods specified in the
SEC’s rules and forms, and the rules of the Nasdaq stock exchange.
Changes in Internal Control over Financial Reporting
The combination of acquisitions,
including the acquisition of TriMed Inc. (“TriMed”), continued acquisition
integrations and systems implementation activity undertaken during
the quarter and carried over from prior quarters
when considered in the aggregate, represents a material change in our internal
control over financial reporting. As
previously reported, the full integration of TriMed will extend beyond year-end and, therefore, we anticipate
excluding TriMed from our annual assessment of internal control over financial reporting as of December
28, 2024,
as permitted by related SEC staff interpretive guidance for newly acquired businesses.
During the quarter ended September 28, 2024, we completed the acquisition
of a dental distribution business and
acquired a controlling interest of a dental affiliate in Europe.
Also, post-acquisition integration related activities
continued for our dental and medical businesses acquired during prior quarters.
These acquisitions, the majority of
which utilize separate information and financial accounting systems,
have been included in our condensed
consolidated financial statements since their respective dates of acquisition.
Also, during the quarter ended September 28, 2024, we completed the
systems implementation activities for
implementing a new e-commerce system for certain dental distribution
businesses in the UK and Ireland.
Additionally, we completed the systems implementation activities related to the integration of a previously acquired
Australian medical distribution business into our existing Australian
ERP system.
Finally, we continued systems
implementation activities for two of our dental distribution businesses in France
and Brazil.
All acquisitions, continued acquisition integrations and systems implementation
activities involve necessary and
appropriate change-management controls that are considered in our quarterly
assessment of the design and
operating effectiveness of our internal control over financial reporting.
The deficiencies in internal control over financial reporting identified
as of December 30, 2023 at the application
control level related to logical and user access management and segregation
of duties have continued to be the
subject of ongoing remediation including implementation of specific
action plans and the testing/validation of
control operating effectiveness, which are expected to be substantially completed prior to year-end.
Limitations of the Effectiveness of Internal Control
A control system, no matter how well conceived and operated, can provide
only reasonable, not absolute, assurance
that the objectives of the internal control system are met.
Because of the inherent limitations of any internal control
system, no evaluation of controls can provide absolute assurance that
all control issues, if any, within a company
have been detected.
PART
II.
OTHER INFORMATION
ITEM 1.
LEGAL PROCEEDINGS
For a discussion of Legal Proceedings, see
of the Notes to the Condensed Consolidated
Financial Statements included under Item 1.
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