Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 92

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 92
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 of the last business day of our most recently completed second fiscal quarter; or (iv) the date on which we
have issued more than $1.0 billion in non-convertible debt securities during any three-year period. An independent assessment of the effectiveness
of our internal controls could detect problems that our management’s assessment might not. Undetected material weaknesses in our
internal controls could lead to financial statement restatements and require us to incur the expense of remediation.

We previously identified material weaknesses in
our internal control over financial reporting related to lack of segregation of duties within account processes and systems, inadequate
documentation to evidence the operation of some of our controls, inconsistent procedures and approvals, lack of periodic user access reviews,
lack of assessment of controls of financially significant vendors and insufficient written policies and procedures for accounting, IT
and financial reporting and record keeping for the year ended October 31, 2023.

We took a number of measures to address the material
weaknesses that were identified, including independent review and approval of transactions and reconciliations in some processes by hiring
personnel and segregating duties amongst the team and the implementation of processes to document and retain evidence to support reviews
and reconciliations. Except for additional personnel costs and the cost of systems and the costs of our third-party service providers,
we do not expect to incur any material costs related to our remediation plan. See “ Item 5. E - Management’s Discussion
and Analysis of Financial Condition and Results of Operations - Internal Control Over Financial Reporting.”

Although as of October 31, 2024, the material weaknesses
in our internal control over financial reporting had been remediated, there can be no assurance that we will not suffer from other material
weaknesses in the future. If we fail to maintain effective internal controls over financial reporting in the future, such failure could
result in a material misstatement of our annual or quarterly financial statements that would not be prevented or detected on a timely
basis and which could cause investors and other users to lose confidence in our financial statements, limit our ability to raise capital
and have a negative effect on the trading price of our ordinary shares. Additionally, failure to remediate the material weakness or otherwise
maintain effective internal controls over financial reporting may also negatively impact our operating results and financial condition,
impair our ability to timely file our periodic and other reports with the SEC, subject us to additional litigation and regulatory actions
and cause us to incur substantial additional costs in future periods relating to