Company: IXHL
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110299
Chunk: 76

Company: Incannex Healthcare Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 76
---
, relating to the documentation
of accounting policies and procedures, particularly relating to the correct application of complex accounting measures as previously
reported in our 2025 Annual Report.

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 September 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 concluded that these controls are operating effectively.

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.

Changes in Internal Control over Financial
Reporting

Other than the remediation
of the material weakness discussed above, there were no changes in our internal controls over financial reporting (as such term is defined
in Rules 13a-15(d) and 15d-15(d) under the Exchange Act) that occurred during three months ended September 30, 2025 that have materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.

23

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

From time to time