{"url_path":"/sec/hcai/10-k/2026/item-15","section_key":"item-15","section_title":"Item 15 Controls and Procedures**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-13","source_url":"https://www.sec.gov/Archives/edgar/data/1958399/0001213900-26-055775-index.html","accession_number":"0001213900-26-055775","cik":"0001958399","ticker":"HCAI","issuer_name":"Huachen AI Parking Management Technology Holding Co., Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1958399/0001213900-26-055775-index.html","primary_entity_key":"0001958399","primary_entity_name":"Huachen AI Parking Management Technology Holding Co., Ltd"},"word_count":866,"has_tables":true,"body_markdown":"**Item\n15. Controls and Procedures**\n\n \n\n \n(a)\nDisclosure Controls and Procedures.\n\n \n\nOur management, with the participation\nof our Chief Executive Officer and Chief Financial Officer, has performed an evaluation of the effectiveness of our disclosure controls\nand procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report, as\nrequired by Rule 13a-15(b) under the Exchange Act.\n\n \n\nBased upon that evaluation,\nour management has concluded that, as of December 31, 2024, our disclosure controls and procedures were ineffective as our management\nhas identified a material weakness that has been identified related to our lack of sufficient financial reporting and accounting personnel\nwith appropriate knowledge of the generally accepted accounting principles in the United States (“U.S. GAAP”) and SEC reporting\nrequirements to properly address complex U.S. GAAP accounting issues and to prepare and review our consolidated financial statements and\nrelated disclosures to fulfill U.S. GAAP and SEC financial reporting requirements. The other material weakness that has been identified\nrelated to our lack of comprehensive accounting policies and procedures manual in accordance with U.S. GAAP.\n\n \n\n88\n\n \n\nTo remedy the identified material\nweaknesses, we have implemented and will continue to implement several measures to improve our internal control over financial reporting,\nincluding: (i) that we engaged experienced financial consultant who worked closely with our internal finance team to assist us in preparing\nour financial statements and related disclosures in accordance with U.S. GAAP; (ii) that our Chief Financial Officer received additional\ntraining in U.S. GAAP through self-study and webinar courses, and began to periodically review major accounting literature updates provided\nby a major accounting firm which provide an overview of recent U.S. accounting pronouncements. (iii) conducting regular and continuous\nU.S. GAAP training programs and webinars for our financial reporting and accounting personnel; (iv) improving financial oversight function\nfor handling complex accounting issues under U.S. GAAP. However, the implementation of these measures may not fully address the deficiencies\nin our internal control over financial reporting. We are not able to estimate with reasonable certainty the costs that we will need to\nincur to implement these and other measures designed to improve our internal control over financial reporting. See “Risk Factors—Risks\nRelated to Our Business and Industry— *If we fail to implement and maintain an effective system of internal controls to remediate\nour material weaknesses over financial reporting, we may be unable to accurately report our results of operations, meet our reporting\nobligations, or prevent fraud.*”\n\n \n\nPursuant to the JOBS Act,\nwe qualify as an “emerging growth company as we recorded revenues less than US$1.235 billion in our most recent fiscal year, which\nallows us to take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies.\nThese provisions include exemption from the auditor attestation requirement under Section 404 of the Sarbanes-Oxley Act, in the assessment\nof the emerging growth company’s internal control over financial reporting.\n\n \n\nNeither we nor our independent\nregistered public accounting firm undertook a comprehensive assessment of our internal control under the Sarbanes-Oxley Act for purposes\nof identifying and reporting any weakness in our internal control over financial reporting, which, however, will be required once we become\na public company and after we cease to be an “emerging growth company” as such term is defined in the JOBS Act. Had we performed\na formal assessment of our internal control over financial reporting or had our independent registered public accounting firm performed\nan audit of our internal control over financial reporting, additional control deficiencies may have been identified.\n\n \n\n \n(b)\nManagement’s annual report on internal control over financial reporting.\n\n \n\nOur management is responsible\nfor establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) and 15d-15(f) under\nthe Exchange Act. Our management evaluated the effectiveness of our internal control over financial reporting, as required by Rule 13a-15(c) of\nthe Exchange Act, based on criteria established in the framework in Internal Control-Integrated Framework (2013) issued by the Committee\nof Sponsoring Organizations of the Treadway Commission. Based on this evaluation, our management has concluded that our internal control\nover financial reporting was not effective as of December 31, 2024 due to a material weakness identified in our internal control over\nfinancial reporting as described above.\n\n \n\nBecause of its inherent limitations,\ninternal control over financial reporting may not prevent or detect misstatements. In addition, projections of any evaluation of effectiveness\nof our internal control over financial reporting to future periods are subject to the risk that controls may become inadequate because\nof changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.\n\n \n\n \n(c)\nAttestation report of the registered public accounting firm.\n\n \n\nThis\nannual report on Form 20-F does not include an attestation report of our registered\npublic accounting firm because we qualified as an “emerging growth company” as defined under the JOBS Act as of December 31,\n2024.\n\n \n\n \n(d)\nChanges in internal control over financial reporting.\n\n \n\nThere have been no changes\nin our internal controls over financial reporting occurred during the fiscal year ended December 31, 2024, that have materially affected,\nor are reasonably likely to materially affect, our internal control over financial reporting.\n\n \n\n89\n\n \n\n**item ****16.\n[Reserved]**"}