Full Press Release Details
Charter of the Audit Committee of the
Board of Directors of Atrinsic, Inc.
The principal purpose of the Audit and Finance Committee (the
"Committee") is to assist the Board of Directors (the "Board") of Atrinsic, Inc. (the "Company")
in fulfilling its responsibility to oversee the Company's accounting and financial reporting processes and audits of the
Company's financial statements, including by reviewing the financial reports and other financial information provided by
the Company, the Company's disclosure controls and procedures and internal accounting and financial controls, and the annual
independent audit process.
In discharging its oversight role, the Committee is granted
the authority to investigate any matter brought to its attention with full access to all books, records, facilities and personnel
of the Company and the authority to engage independent counsel and other advisors, as it determines necessary to carry out its
duties. The Committee also is authorized to approve the use of Company funds to the extent it deems such expenditures necessary
or appropriate in carrying out the responsibilities of the Committee.
The Committee shall be responsible for the appointment (and
where appropriate, replacement), compensation, retention and oversight of the work of the Company's outside auditor in preparing
or issuing an audit report or related work, including resolving any disagreements between management and the outside auditor regarding
financial reporting. The Committee shall receive direct reports from the outside auditor. The Committee shall be responsible for
overseeing the independence of the outside auditor and for approving all auditing services and permitted nonaudit services provided
by the outside auditor.
This Charter shall be reviewed for adequacy on an annual basis
by the Committee and any changes thereto shall be submitted to the Board for approval.
The Committee shall be comprised of not less than two members
of the Board, and the
Committee's composition will meet the Nasdaq Audit Committee
requirements. Accordingly, subject to the paragraph below, all of the members will be directors:
Except under exceptional circumstances approved by the Board,
no member of the Committee may serve simultaneously on the audit committee of more than three other public companies. Subject to
applicable law and regulations, the Board may appoint one member who does not meet the independence requirements set forth above
and who is not a current employee of the Company or an immediate family member of such employee if the Board, under exceptional
and limited circumstances, determines that membership on the Committee by the individual is required in the best interests of the
Company and its shareholders. Such member may not serve for more than two years, and may not serve as the Committee chair. The
Board shall disclose in the next proxy statement after such determination the nature of the relationship and the reasons for the
In order to fulfill its role, the Committee shall be organized
and governed in the following manner:
Key Responsibilities
The Committee's role is one of oversight, and it is recognized
that the Company's management is responsible for preparing the Company's financial statements and that the outside
auditor is responsible for auditing those financial statements.
The following functions shall be the common recurring activities
of the Committee in carrying out its oversight function. The functions are set forth as a guide and may be varied from time to
time as appropriate under the circumstances.
Complaint Procedures
Any issue of significant financial misconduct shall be brought
to the attention of the Committee for its consideration. In this connection, the Committee shall establish procedures for (i) the
receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing
matters and (ii) the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting
or auditing matters.
Adopted March 25, 2016
To be amended in June 2016 following expected corporate name
change to Protagenic Therapeutics, Inc.