{"url_path":"/sec/useg/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":"2026-03-13","source_url":"https://www.sec.gov/Archives/edgar/data/101594/0001437749-26-008057-index.html","accession_number":"0001437749-26-008057","cik":"0000101594","ticker":"USEG","issuer_name":"BIG SKY INDUSTRIAL INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/101594/0001437749-26-008057-index.html","primary_entity_key":"0000101594","primary_entity_name":"US ENERGY CORP"},"word_count":788,"has_tables":true,"body_markdown":"**Item 9A. Controls and Procedures.**\n\n \n\n**Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures**\n\n \n\nWe maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that are designed to ensure that information required to be disclosed by the Company in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.\n\n \n\nAs previously disclosed, during the year ended December 31, 2024, management identified a material weakness in internal control over financial reporting related primarily to deficiencies in the design of our accounting system and related information technology general controls.\n\n \n\nDuring 2025, management implemented remediation measures designed to address this material weakness, including transitioning certain accounting functions to a third-party provider and implementing a new accounting system with enhanced system-based controls, as well as enhancing documentation and operation of manual review controls.\n\n \n\nBased on management’s evaluation, as of December 31, 2025, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective.\n\n \n\n**Management’s Report on Internal Control Over Financial Reporting**.\n\n \n\nManagement is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act (“ICFR”). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with U.S. generally accepted accounting principles.\n\n \n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Even effective internal controls can provide only reasonable assurance with respect to financial statement preparation and presentation.\n\n \n\nUnder the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, management conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2025, using the criteria set forth in the Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).\n\n \n\nAs previously disclosed, management identified a material weakness in internal control over financial reporting as of December 31, 2024 related to deficiencies in the design of our accounting system and certain related control elements.\n\n \n\nDuring 2025, management implemented remediation actions designed to address this material weakness, including:\n\n \n\n \n\n●\n\nEngaging a third-party accounting service provider;\n\n \n\n●\n\nImplementing a new accounting system with enhanced system-based controls;\n\n \n\n●\n\nEnhancing segregation of duties through system-based permissions;\n\n \n\n●\n\nImproving documentation and evidence of management review controls; and\n\n \n\n●\n\nEvaluating relevant third-party information technology general controls.\n\n \n\nBased on management’s evaluation, management concluded that the material weakness identified as of December 31, 2024 has been remediated, and that the Company had effective internal control over financial reporting as of December 31, 2025.\n\n \n\n64\n\n[Table of Contents](#toc)\n\n \n\n**Limitations on the Effectiveness of Controls**\n\n \n\nThe Company’s disclosure controls and procedures are designed to provide the Company’s Chief Executive Officer and Chief Financial Officer with reasonable assurances that the Company’s disclosure controls and procedures will achieve their objectives. However, the Company’s management does not expect that the Company’s disclosure controls and procedures or the Company’s internal control over financial reporting can or will prevent all human error. A control system, no matter how well designed and implemented, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Furthermore, the design of a control system must reflect the fact that there are internal resource constraints, and the benefit of controls must be weighed relative to their corresponding costs. Because of the limitations in all control systems, no evaluation of controls can provide complete assurance that all control issues and instances of error, if any, within the Company are detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur due to human error or mistake. Additionally, controls, no matter how well designed, could be circumvented by the individual acts of specific persons within the organization. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated objectives under all potential future conditions.\n\n \n\n**Attestation Report of the Registered Public Accounting Firm**\n\n \n\nThis report does not include an attestation report of our registered public accounting firm regarding our internal controls over financial reporting. Under SEC rules, such attestation is not required for non-accelerated filers such as the Company."}