Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 303

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 303
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 investors could generate negative publicity.

63

Risks Related to Our Business Operations

Our R&D efforts will be jeopardized if we are unable to retain
key personnel and cultivate key academic and scientific collaborations.

Changes in our senior management could be disruptive
to our business and may adversely affect our operations. For example, when we have changes in senior management positions, we may elect
to adopt different business strategies or plans. Any new strategies or plans, if adopted, may not be successful and if any new strategies
or plans do not produce the desired results, our business may suffer.

Moreover, competition among biotechnology and pharmaceutical
companies for qualified employees is intense and as such, we may not be able to attract and retain personnel critical to our success.
Our success depends on our continued ability to attract, retain and motivate highly qualified management, clinical and scientific personnel,
manufacturing personnel, sales and marketing personnel and on our ability to develop and maintain important relationships with clinicians,
scientists and leading academic and health institutions. If we fail to identify, attract, retain and motivate these highly skilled personnel,
we may be unable to continue our product development and commercialization activities.

In addition, biotechnology and pharmaceutical industries
are subject to rapid and significant technological change. Our drug candidates may be or become uncompetitive. To remain competitive,
we must employ and retain suitably qualified staff that are continuously educated to keep pace with changing technology but may not be
in a position to do so.

Inflation may adversely affect us by materially increasing our
costs.

Recently, inflation has increased throughout the
U.S. economy. While we do not believe we have been materially affected by inflation as of the date of this Annual Report, inflation can
adversely affect us by materially increasing the costs of clinical trials and research, the development of our drug candidates, administration,
and other costs of doing business. We may experience material increases in the prices of labor and other costs of doing business. In an
inflationary environment, cost increases may materially outpace our expectations, causing us to use our cash and other liquid assets faster
than forecasted. If this happens, we may need to raise additional capital to fund our operations, which may not be available in sufficient
amounts or on reasonable terms, if at all, sooner than expected.

Changes in interpretation or application of account principles
generally accepted in the United States (“US GAAP”) may adversely affect our operating results.

We prepare our consolidated financial statements
to conform to US GAAP. These principles