Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 572

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 2
Chunk 572
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 policies or procedures may deteriorate. Because of its inherent limitations, internal control over financial reporting may not prevent
or detect errors or misstatements in our consolidated financial statements. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree or compliance
with the policies or procedures may deteriorate. Management, with the participation of our principal executive and principal financial
officers, assessed the effectiveness of our internal control over financial reporting on June 30, 2025. In making these assessments, management
used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control
- Integrated Framework (2013). Based on its assessment, management has concluded that our internal control over financial reporting was
not effective as of June 30, 2025.

A material weakness is defined as a deficiency,
or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material
misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. Management has concluded
that we did not maintain effective disclosure controls and procedures due to the material weakness in internal control over financial
reporting which existed as of June 30, 2025, relating to the documentation of accounting policies and procedures, particularly relating
to the correct application of complex accounting measures.

Remediation Efforts

The measures that we are undertaking to remediate
the material weakness in internal control over financial reporting have and will include: (a) hiring qualified internal control personnel
or consultants to manage the implementation of internal control policies, procedures and improvement of the internal audit function, as
applicable; (b) developing and implementing written policies and procedures for accounting and financial reporting that meet the standards
applied to public companies listed in the United States; and (c) conducting internal control training to management, key operations personnel
and the accounting department, so that management and relevant personnel understand the requirements and elements of internal control
over financial reporting mandated by the US securities laws.

We believe we have made progress in accordance
with our remediation plan even though the material weaknesses will not be considered remediated until we have completed implementing the
necessary additional applicable controls and operate with them for a sufficient period of time to allow management and our auditors to
conclude that these controls are operating effectively.

We cannot determine when
our remediation plan