{"url_path":"/sec/ctrvp/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":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/1583771/0001493152-26-023136-index.html","accession_number":"0001493152-26-023136","cik":"0001583771","ticker":"HEPA","issuer_name":"Hepion Pharmaceuticals, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1583771/0001493152-26-023136-index.html","primary_entity_key":"0001583771","primary_entity_name":"Hepion Pharmaceuticals, Inc."},"word_count":572,"has_tables":true,"body_markdown":"**ITEM\n4. CONTROLS AND PROCEDURES**\n\n \n\n**Evaluation\nof Disclosure Controls and Procedures**\n\n \n\nBased\non an evaluation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act\nof 1934, as amended) required by paragraph (b) of Rule 13a-15 or Rule 15d-15, as of March 31, 2026, our Interim Principal Executive Officer/Principal\nFinancial Officer has concluded that due to the material weaknesses in our internal control over financial reporting noted below, our\ndisclosure controls and procedures were not effective.\n\n \n\n \n●\nDue to cost-cutting measures, the Company’s control environment was ineffective as they did not maintain a sufficient complement of personnel to execute controls as designed including the absence of proper segregation of duties. Such impacted controls include indirect controls affecting risk assessment, information & communication, and monitoring components of COSO along with certain control activities including both business process controls and information technology general controls.\n\n \n●\nLack of proper design and implementation of controls over formal review, approval, and evaluation of non-core, complex accounting transactions.\n\n \n●\nLack of proper design and implementation of certain controls over the income tax provision and management’s review of the income tax provision. The Company utilized a third-party to assist in the preparation of the tax provision. Specifically, the Company did not sufficiently design and implement controls related to the completeness and accuracy of certain aspects of the tax provision and the completeness and accuracy income tax disclosures.\n\n \n\n*Remediation\nof Material Weaknesses*\n\n \n\nWe\nare committed to the remediation of the material weaknesses described above, as well as the continued improvement of our internal control\nover financial reporting. We need to raise additional capital in order to add additional personnel and implement additional internal\ncontrol procedures. If we are able to raise additional capital, we plan on implementing several remedial actions to improve our internal\ncontrols, including:\n\n \n\n \n●\nWe\nwill need to increase personnel in the future in order to have proper segregation of duties.\n\n \n●\nWe\nare utilizing the services of external consultants for non-routine and\\or technical accounting issues as they arise.\n\n \n●\nExpanding\nand improving our review process for complex accounting transactions. We plan to further improve this process by enhancing access\nto accounting literature, identification of third-party professionals with whom to consult regarding complex accounting applications\nand consideration of additional staff with the requisite experience and training to supplement existing accounting professionals.\n\n \n●\nManagement,\nwith the assistance of a third party, will perform an evaluation of the processes and procedures around our tax provision processes,\ninternal control design gaps, and recommend process enhancements.\n\n \n●\nImplementing\nenhancements and process improvements, including the design and implementation of well-defined controls and related control attributes\nregarding income tax provision and income tax disclosures.\n\n \n●\nDeveloping\na detailed timeline of the tax provision calculation, to ensure that sufficient time is allocated to complete the process as designed.\n\n \n\nAs\nwe continue our evaluation and improve our internal control over financial reporting, management may identify and take additional measures\nto address control deficiencies. We cannot assure you that we will be successful in remediating the material weaknesses in a timely manner.\n\n \n\n**Changes\nin Internal Control over Financial Reporting**\n\n** **\n\nExcept\nas noted above, there have been no changes in our internal controls over financial reporting during the three months ended March 31,\n2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.\n\n** **\n\n21\n\n [Table of Contents](#toc_001)\n\n** **\n\n**PART\nII. OTHER INFORMATION**"}