{"url_path":"/sec/akan/10-k/2026/item-15","section_key":"item-15","section_title":"Item 15 CONTROLS AND PROCEDURES**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-06-09","source_url":"https://www.sec.gov/Archives/edgar/data/1888014/0001213900-26-066800-index.html","accession_number":"0001213900-26-066800","cik":"0001888014","ticker":"AKAN","issuer_name":"AKANDA CORP.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1888014/0001213900-26-066800-index.html","primary_entity_key":"0001888014","primary_entity_name":"AKANDA CORP."},"word_count":627,"has_tables":true,"body_markdown":"**ITEM 15. CONTROLS AND PROCEDURES**\n\n \n\n**Evaluation of Disclosure Controls and Procedures**\n\n \n\nOur management, with the\nparticipation of our Chief Financial Officer, has performed an evaluation of the effectiveness of our disclosure controls and procedures\n(as defined in Rule 13a-15(e) under the Exchange Act) as of December 31, 2025, as required by Rule 13a-15(b) under\nthe Exchange Act. Based on that evaluation, our management has concluded that, as of December 31, 2025, our disclosure controls\nand procedures were not effective, because of a material weakness in our internal control over financial reporting, as discussed below, as well as an inability to timely conclude our audit for the 2025\nfiscal year.\n\n \n\n**Management’s Annual Report on Internal\nControl over Financial Reporting**\n\n \n\nOur management is responsible\nfor establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f).\nUnder the supervision and with the participation of our management, including our Chief Financial Officer, we conducted an evaluation\nof the effectiveness of our internal control over financial reporting as of December 31, 2025, based on the criteria set forth in\n*Internal Control—Integrated Framework* issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO\n2013). Based on our evaluation under the criteria set forth in *Internal Control — Integrated Framework*, our management\nconcluded that our internal control over financial reporting was not effective as of December 31, 2025 due to the material weakness\ndescribed below.\n\n \n\nA material weakness is a\ndeficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility\nthat a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.\n\n \n\nBased on our assessment,\nmanagement concluded that as of December 31, 2025, our company’s internal control over financial reporting was not effective based\non present company activity. In the course of making our assessment, we identified a material weakness in our internal control over financial\nreporting. The material weakness consisted of inadequate staffing and supervision within the bookkeeping and accounting operations of\nour company. The relatively small number of staff who have bookkeeping and accounting functions prevents us from segregating duties within\nour internal control system. The inadequate segregation of duties is a weakness which could lead to the untimely identification and resolution\nof accounting and disclosure matters or could lead to a failure to perform timely and effective reviews.\n\n \n\nWe will continue to monitor\nand evaluate the effectiveness of our internal controls and procedures over financial reporting on an ongoing basis and are committed\nto taking further action and implementing additional improvements as necessary.\n\n \n\nThis Annual Report does\nnot include an attestation report of the Company’s registered public accounting firm regarding internal control over financial\nreporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant\nto rules of the SEC that permit the Company to provide only management’s report in this Annual Report.\n\n \n\n**Inherent Limitations on Effectiveness of Controls**\n\n \n\nIn designing and evaluating\nour disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated,\ncan provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and\nprocedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating\nthe benefits of possible controls and procedures relative to their costs.\n\n \n\n84\n\n \n\n \n\n**Changes in Internal Control Over Financial\nReporting**\n\n \n\nThere has been no change\nin our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) for the fiscal year\nended December 31, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial\nreporting."}