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Arax Holdings Corp: material weakness open at least 2,189 days

By Russell Tomoum, Ctrl Worx™. Built from its own SEC filings. How the Clock works.

Arax Holdings Corp reported ineffective internal control over financial reporting because of a material weakness in 7 filings since Apr 22, 2021. It stated one or more material weaknesses in 10 more SEC filings that gave no conclusion on whether that control is effective. The latest was its 10-K for the period ended Oct 31, 2024.

Checked against SEC EDGAR: Oct 29, 2026 · Entry #10997

Causes the company named

Segregation of duties · 17Entity-level and governance · 17Accounting expertise and resources · 14Financial close and reporting · 11Complex or non-routine accounting · 1Other · 1

Limited segregation of duties, no independent audit committee, lack of written policies, and external consultant reliance for financial reporting.

What the latest filing says

CONTROLS AND PROCEDURES Management evaluated internal control over financial reporting using the COSO 2013 framework. Material weaknesses were noted, including limited segregation of duties due to small staff size, the absence of an independent audit committee, lack of formal written policies and procedures, and financial reporting prepared with the assistance of external consultants. The Company’s remediation plan includes hiring additional accounting personnel following a significant acquisition or financing event, adopting formal policies and procedures, and establishing an audit committee. As of October 31, 2024, the end of the period covered by this Annual Report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures and internal control over financial reporting. We maintain disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchang [...]

From the controls section of the 10-K filed Jun 10, 2026. Read the full filing on SEC EDGAR.

Company response: Arax Holdings Corp can send a statement or a link to its remediation update to russell@ctrlworx.com. We post it here, unedited and dated.

Filings

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Based on public SEC filings. Causes are grouped into standard categories by Ctrl Worx. The filings are the authority. Ctrl Worx is not affiliated with Arax Holdings Corp or the SEC. Not investment advice. Why you can rely on the Watch List.