{"url_path":"/sec/cik-0001566243/10-k/2026/item-9a","section_key":"item-9a","section_title":"Item 9A CONTROLS AND PROCEDURES**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-10","source_url":"https://www.sec.gov/Archives/edgar/data/1566243/0001753926-26-000995-index.html","accession_number":"0001753926-26-000995","cik":"0001566243","ticker":null,"issuer_name":"Arax Holdings Corp","edgar_url":"https://www.sec.gov/Archives/edgar/data/1566243/0001753926-26-000995-index.html","primary_entity_key":"0001566243","primary_entity_name":"Arax Holdings Corp"},"word_count":475,"has_tables":true,"body_markdown":"**ITEM\n9A. CONTROLS AND PROCEDURES**\n\n \n\nManagement\nevaluated internal control over financial reporting using the COSO 2013 framework. Material weaknesses were noted, including limited\nsegregation of duties due to small staff size, the absence of an independent audit committee, lack of formal written policies\nand procedures, and financial reporting prepared with the assistance of external consultants. The Company’s remediation\nplan includes hiring additional accounting personnel following a significant acquisition or financing event, adopting formal policies\nand procedures, and establishing an audit committee.\n\n \n\nAs\nof October 31, 2024, the end of the period covered by this Annual Report, we carried out an evaluation, under the supervision\nand with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness\nof the design and operation of the Company’s disclosure controls and procedures and internal control over financial reporting.\n\n \n\nWe\nmaintain disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act that are designed\nto ensure that information required to be disclosed in our reports filed or submitted to the SEC under the Exchange Act is recorded,\nprocessed, summarized, and reported within the time periods specified by the SEC’s rules and forms, and that information\nis accumulated and communicated to management, including the principal executive and financial officers, as appropriate, to allow\ntimely decisions regarding required disclosures. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer\nconcluded that, as of October 31, 2024, our disclosure controls and procedures were not effective due to material weaknesses in\nour control environment and financial reporting process.\n\n \n\nA\n“material weakness” is defined as a deficiency, or a combination of deficiencies, in internal control over financial\nreporting such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial\nstatements will not be prevented or detected on a timely basis.\n\n \n\nOur\nmanagement is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Exchange\nAct Rule 13a-15(f)). In evaluating the effectiveness of our internal control over financial reporting, management used the criteria\nset forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control – Integrated\nFramework (2013).\n\n \n\nManagement\nidentified material weaknesses consisting of: (1) insufficient segregation of duties due to limited staff, (2) no independent\naudit committee, (3) lack of written internal control policies and procedures, and (4) financial reporting conducted with external\nconsultant assistance. Management also noted a material weakness in the initial accounting for software costs (ASC 985-20 misclassification),\nwhich led to FY2024 adjustments. Remediation includes enhanced ASC 350-40 training and consultant review procedures for FY2025.\n\n \n\nThe\nCompany plans to rectify these weaknesses by implementing an independent board of directors, establishing written policies and\nprocedures for internal control over financial reporting, and hiring additional accounting personnel following a significant financing\nor acquisition event."}