Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 101

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 4
Chunk 101
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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and
Procedures

We maintain disclosure
controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e)) under the Exchange Act that are designed to ensure
that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management,
including our Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable
assurance of achieving the desired control objectives. Our management, with the participation of our Chief Executive Officer and Chief
Financial Officer, has evaluated, as of the end of the period covered by this Quarterly Report, the effectiveness of the design and operation
of our disclosure controls and procedures. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded
that, as of March 31, 2025, our disclosure controls and procedures were not effective at the reasonable assurance level due to the material
weakness in internal control over financial reporting which existed as of March 31, 2025, relating to the documentation of accounting
policies and procedures, particularly relating to the correct application of complex accounting measures as previously reported in our
2024 Annual Report.

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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 March 31, 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