{"url_path":"/sec/lake/10-q/2026/item-4","section_key":"item-4","section_title":"Item 4 Controls and Procedures","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-06-09","source_url":"https://www.sec.gov/Archives/edgar/data/798081/0001193125-26-264001-index.html","accession_number":"0001193125-26-264001","cik":"0000798081","ticker":"LAKE","issuer_name":"LAKELAND INDUSTRIES INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/798081/0001193125-26-264001-index.html","primary_entity_key":"0000798081","primary_entity_name":"LAKELAND INDUSTRIES INC"},"word_count":855,"has_tables":true,"body_markdown":"Item 4. Controls and Procedures\n\nEvaluation of Disclosure Controls and Procedures\n\nOur management, under the supervision and with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act), as of April 30, 2026. The term “disclosure controls and procedures” means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Based on this evaluation, our principal executive officer and principal financial officer have concluded that as of April 30, 2026, our disclosure controls and procedures were not effective due to the material weakness in internal control over financial reporting described below.\n\nNotwithstanding the ineffective disclosure controls and procedures as a result of the identified material weakness described below, management has concluded that the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q present fairly, in all material respects, the Company’s financial position, results of operations and cash flows in accordance with U.S. GAAP.\n\nMaterial Weakness in Internal Control over Financial Reporting\n\nAs previously disclosed in our 2026 Form 10-K, management identified certain deficiencies in the Company’s internal control over financial reporting that aggregated to a material weakness related to the completeness and accuracy of its foreign reporting packages. Specifically, the Company has undergone significant changes in size, complexity and geographic footprint primarily due to multiple acquisitions, and has numerous systems that process financially relevant data. Of these systems, Sage X3 (United States, Canada and the United Kingdom) and Kingdee (China and Hong Kong), were in the Company’s scope for testing of information technology general controls (“ITGCs\") in support of management’s assessment of internal control over financial reporting. The Company’s consolidation process is manual and based upon reporting packages submitted by the various locations. For those locations where the financially relevant systems were not in-scope and not subject to the Company’s testing of ITGCs, the financial reporting controls, as designed, do not adequately address the completeness and accuracy of the foreign reporting packages. The reporting packages form the basis of multiple controls, including a key management review control designed to detect a material misstatement in the Company’s consolidated financial statements as well as other controls. Additionally, the Company did not update the control activities documentation for numerous locations and, in some cases, did not change control processes to reflect changes in operating structure. This contributed to the material weakness disclosed in our 2026 Form 10-K in the Company’s internal controls.\n\nManagement’s Remediation Plan and Status\n\nIn response to the material weakness, management has taken, or is in the process of taking, the following actions:\n\n•\nImplementing an enterprise resource planning (“ERP”) system, which is expected to roll out in phases over the next several years.\n\n•\nTasked the Audit Committee of the Board of Directors with oversight of the risks associated with the Company's technology strategies, its major technology investments and its operational performance; and\n\n•\nMigrating substantially all of our operations to a common accounting system and utilizing a common chart of accounts and improved accounting close and revise procedures.\n\nWhile some of these measures have been completed as of the date of this report, management has not completed and tested all of the planned corrective processes, enhancements, procedures and related evaluation necessary to determine whether the material weakness has been fully remediated. Moreover, the corrective actions and controls need to be in operation for a sufficient period of time for management to conclude that the control environment is operating effectively and has been adequately tested by management. Accordingly, the material weakness has not been fully remediated as of the date of this report. As the Company continues its evaluation and remediation efforts, management may modify the actions described above or identify and take additional measures to address the material weakness. Management will continue to assess the effectiveness of remediation efforts in connection with its ongoing evaluation of internal control over financial reporting.\n\n29\n\n \n\nChanges in Internal Control Over Financial Reporting\n\nOther than continuing to make progress on the ongoing remediation efforts described above, there were no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the quarter ended April 30, 2026 that materially affected, or are reasonably likely to affect materially, the Company’s internal control over financial reporting.\n\n30\n\n \n\nPART II. OTHER INFORMATION"}