{"url_path":"/sec/ixhl/10-q/2026/item-4","section_key":"item-4","section_title":"Item 4 Controls and Procedures","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1873875/0001213900-26-057227-index.html","accession_number":"0001213900-26-057227","cik":"0001873875","ticker":"IXHL","issuer_name":"Incannex Healthcare Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1873875/0001213900-26-057227-index.html","primary_entity_key":"0001873875","primary_entity_name":"Incannex Healthcare Inc."},"word_count":665,"has_tables":true,"body_markdown":"Item\n4. Controls and Procedures\n\n \n\nEvaluation\nof Disclosure Controls and Procedures\n\n \n\nWe\nmaintain disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e)) under the Securities Exchange\nAct of 1934, as amended (the “Exchange Act”), that are designed to ensure that information required to be disclosed in our\nreports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules\nand forms and that such information is accumulated and communicated to\nour management, including our Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate\nto allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can\nprovide only reasonable assurance of achieving the desired control objectives. Our management, with the participation of our Chief Executive\nOfficer and Chief Financial Officer, has evaluated, as of the end of the period covered by this Quarterly Report, the effectiveness of\nthe design and operation of our disclosure controls and procedures. Based upon that evaluation, our Chief Executive Officer and Chief\nFinancial Officer concluded that, as of March 31, 2026, our disclosure controls and procedures were not effective at the reasonable\nassurance level due to the material weakness in internal control over financial reporting which existed as of March 31, 2026, relating\nto the documentation of accounting policies and procedures, particularly relating to the correct application of complex accounting measures\nas previously reported in our 2025 Annual Report.\n\n \n\nA\nmaterial weakness is defined as a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that\nthere is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or\ndetected on a timely basis. Management has concluded that we did not maintain effective disclosure controls and procedures due to the\nmaterial weakness in internal control over financial reporting which existed as of March 31, 2026, relating to the documentation\nof accounting policies and procedures, particularly relating to the correct application of complex accounting measures.\n\n \n\nRemediation\nEfforts\n\n \n\nThe\nmeasures that we are undertaking to remediate the material weakness in internal control over financial reporting have and will include:\n(a) hiring qualified internal control personnel or consultants to manage the implementation of internal control policies, procedures\nand improvement of the internal audit function, as applicable; (b) developing and implementing written policies and procedures for accounting\nand financial reporting that meet the standards applied to public companies listed in the United States; and (c) conducting internal\ncontrol training to management, key operations personnel and the accounting department, so that management and relevant personnel understand\nthe requirements and elements of internal control over financial reporting mandated by the US securities laws.\n\n \n\nWe\nbelieve we have made progress in accordance with our remediation plan even though the material weaknesses will not be considered remediated\nuntil we have completed implementing the necessary additional applicable controls and operate with them for a sufficient period of time\nto allow management and our auditors to conclude that these controls are operating effectively.\n\n \n\nWe\ncannot determine when our remediation plan will be fully completed and we cannot provide any assurance that these remediation efforts\nwill be successful or that our internal control over financial reporting will be effective as a result of these efforts.\n\n \n\nChanges\nin Internal Control over Financial Reporting\n\n \n\nOther\nthan the remediation of the material weakness discussed above, there were no changes in our internal\ncontrols over financial reporting (as such term is defined in Rules 13a-15(d) and 15d-15(d) under the Exchange Act) that occurred during\nthree months ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal\ncontrol over financial reporting.\n\n \n\nNotwithstanding\nthis material weakness, we believe that our financial statements contained in this Quarterly Report fairly present our financial position,\nresults of operations and cash flows for the periods covered by this Quarterly Report in all material respects.\n\n \n\n26\n\n \n\nPART\nII—OTHER INFORMATION"}