FormerXBC Inc XEBEQ

RE:RE:What does this mean?

[Koko391]

The excluded entities are those relatively recent aquisitions that have not yet been fully integrated into Xebec's accounting system and which are therefore subject to their own accounting controls (as opposed to Xebec's corporate controls).  The previous paragraph of the report identifies which entities are being referred to:

Management has limited the scope of design of its disclosure controls and procedures and its ICFR to exclude the controls, policies and procedures of The Titus Company, Nortekbelair Corporation, Green Vision Holding B.V, Inmatec Gase Technologie GmbH & Co. KG; Tiger Filtration Limited and California Compression, LLC (together the Acquisition Entities”) which were acquired by the Corporation or one of its subsidiaries. Applied Compression Systems Inc. was acquired in August 2020, Enerphase Industrial Solutions Inc. in July 2020, The Titus Company in October 2020, Green Vision Holding B.V in December 2020, Inmatec Gase Technologie GmbH & Co. KG in February 2021, Nortekbelair Corporation in April 2021, Tiger Filtration Limited in June 2021, and finally California Compression, LLC in August 2021.

The comment indicates that not all of the reported revenues are subject to the company's ICFR (Internal Control over Financial Reporting) procedures, but the report does note that the intent is that these entities will comply within the legislated timeframes.