Company: IXHL
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013783
Chunk: 183

Company: Incannex Healthcare Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1
Chunk 183
---
Item 1. Legal Proceedings

From time to time, we may become involved in litigation
or other legal proceedings arising in the ordinary course of our business. We are not currently a party to any material litigation or
legal proceedings that, in the opinion of our management, are likely to have a material adverse effect on our business. Regardless of
outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, negative
publicity, reputational harm and other factors.

Item 1A. Risk Factors

Except as
set forth below, there have been no material changes to the risk factors set forth in Part I, Item 1A, “Risk Factors,” of
the 2024 Annual Report.

If we are unable to maintain or regain compliance with the requirements
of the Nasdaq Global Market, this could result in the delisting of our Common Stock. A delisting of our Common Stock from the Nasdaq Global
Market could adversely affect our ability to raise additional capital through the public or private sale of equity securities and the
ability of investors to dispose of, or obtain accurate quotations as to the market value of our Common Stock. 

Our Common Stock is currently listed on the Nasdaq
Global Market. Continued listing of a security on the Nasdaq Stock Market is conditioned upon compliance with various continued listing
standards for the applicable market tier. On January 3, 2025, we received a letter (the “Notice”) from Nasdaq notifying us
that, we were not in compliance with Nasdaq Listing Rule 5450(b)(2)(A) (the “Listing Rule”), which requires us to maintain
a minimum Market Value of Listed Securities (“MLVS”) of at least $50.0 million. The Notice stated that we have 180 calendar
days, or until July 2, 2025, to regain compliance with the Listing Rule. There is no immediate effect on the trading of our Common Stock.
To regain compliance, our MVLS must meet or exceed $50.0 million for a minimum of ten consecutive business days during the 180-day compliance
period ending on July 2, 2025. 

We are actively monitoring our stock price and
our MLVS and will consider any and all options available to us to maintain or, if necessary, regain compliance, including, to the extent
we may then be eligible, listing on the Nasdaq Capital Market. There can be no assurance, however, that we will