Innovation Pharmaceuticals Inc (IPIX)

[loanranger]

Just saw this in the 10K:
"If we are unable to assert that our internal control over financial reporting is effective, we could lose investor confidence in the accuracy and completeness of our financial reports, which could cause the price of our common stock to decline, and we may be subject to investigation or sanctions by the SEC."

It's a little bit strange because the SEC rarely if ever assesses sanctions or conducts an investigation based on a simple material weakness in internal control over financial reporting. Inaccuracies in reporting based on that weakness are something else.

Last year the Company said this:
"Based on the Company’s processes and assessment, as described above, management has concluded that, as of June 30, 2022, the Company’s internal control over financial reporting was effective."
In all likelihood the Company's auditors pointed out to management that they couldn't provide any assurances about the accuracy of BeaMed's numbers and that that needed to be disclosed.