Innovation Pharmaceuticals Inc (IPIX)

[loanranger]

"Is this Ehrlich agreeing with Ehrlich and pointing the finger at Ehrlich?"
Sounds that way, doesn't it? Typically those are 2 different people: "the principal executive officer and principal financial officer of the Company have concluded"

The Exchange Act requires the Company to determine the adequacy of the financial controls that are in place that assure the accuracy of the financials...https://www.sec.gov/spotlight/fcpa/fcpa-recordkeeping.pdf
Without that requirement it's extremely unlikely that the CEO would have revealed his conclusion that "the Company’s disclosure controls and procedures were not effective due to the material weakness in the Company’s internal control over financial reporting as of June 30, 2023".

The specific ineffectiveness is described by the Company:
Material Weakness and Remediation Plan
"As a result of the assessment described above, management concluded that the Company’s accounting procedures relevant to an unconsolidated foreign investment are not sufficiently formal that management can determine whether the applicable control objectives are met and adequate documentation supporting the procedures is in place. Specifically, the Company does not have sufficient controls to conclude that data from the unconsolidated foreign investee underlying the Company’s financial statements is captured completely, accurately and timely, in accordance with the Company’s policies and procedures. This material weakness could result in a misstatement of the recorded equity investment as well as the equity in loss from equity investment that would not be prevented or detected on a timely basis."

The meaning of that is plain enough. IPIX and BeaMed don't have systems in place to assure that BeaMed's reporting is accurate. The CPA CEO is acknowledging that fact and the resulting possibility that the IPIX financials could be inaccurate as a result. Not that they ARE inaccurate, but that they COULD BE.
A cautious IPIX investor might wonder why their CPA CEO would invest half of their cash in a business that wasn't adequately transparent in its financial records to assure that the book value and operational effectiveness of BeaMed could be determined with a reasonable degree of confidence.