Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 122

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 122
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 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. The measures that we are undertaking to remediate the
material weakness in internal control over financial reporting have and will include: (i) 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; (ii) 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 (iii) 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 U.S. securities laws.

This
material weakness will not be considered remediated until we have completed implementing the necessary additional applicable controls
and operate with these controls for a sufficient period of time to allow management and our auditors to conclude that these controls
are operating effectively.

While
we believe we have made progress in accordance with our remediation plan, we cannot determine when our remediation plan will be fully
completed, and we cannot provide any assurance that these remediation efforts will be successful or that our internal control over financial
reporting will be effective as a result of these efforts. If we cannot favorably assess the effectiveness
of our internal control over financial reporting, investor confidence in the reliability of our financial reports may be adversely affected,
which could have a material adverse effect on our stock price.

If
we are unable to maintain or regain compliance with the requirements of the Nasdaq Stock Market (“Nasdaq”), this could result
in the delisting of our common stock. A delisting of our common stock from Nasdaq could adversely affect our ability to raise additional
capital through the public or private sale of equity securities, the ability of investors to dispose shares of our common stock or obtain
accurate quotations as to the market value of our common stock and the price and value of our common stock.

Our common stock is currently
listed on the Nasdaq Capital Market. The requirements for all Nas