Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 335

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 335
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 stock price would likely decline. If one or more of these analysts cease coverage of our company or fail
to publish reports on us regularly, demand for our stock could decrease, which might cause our stock price and any trading volume to
decline.

79

Having availed ourselves of scaled disclosure available to smaller
reporting companies, we cannot be certain if such reduced disclosure will make our common stock less attractive to investors.

Under Section 12b-2 of the Exchange Act, a “smaller
reporting company” is a company that is not an investment company, an asset backed issuer, or a majority-owned subsidiary of a
parent company. Effective September 10, 2018, the definition of a “smaller reporting company” was amended to include companies
with a public float of less than $250 million as of the last business day of its most recently completed second fiscal quarter or, if
such public float is less than $700 million, had annual revenues of less than $100 million during the most recently completed fiscal
year. Smaller reporting companies are permitted to provide simplified executive compensation disclosure in their filings; they are exempt
from the provisions of Section 404(b) of the Sarbanes-Oxley Act requiring that independent registered public accounting firms provide
an attestation report on the effectiveness of internal controls over financial reporting; and they have certain other decreased disclosure
obligations in their SEC filings, including, among other things, only being required to provide two years of audited financial statements
in annual reports. As calculated as of December 31, 2024, we qualified as a smaller reporting company. For as long as we continue to
be a smaller reporting company, we expect that we will take advantage of the reduced disclosure obligations available to us as a result
of those respective classifications. Decreased disclosure in our SEC filings as a result of our having availed ourselves of scaled disclosure
may make it harder for investors to analyze our results of operations and financial prospects.

We may become involved in securities litigation that could materially
divert management’s attention and harm our business, and insurance coverage may not be sufficient to cover all costs and damages.

We may be exposed to securities litigation even
if no wrongdoing occurred. Litigation is usually expensive and diverts management’s attention and resources, which could adversely
affect our business and cash resources. We may become involved in such litigation, and our stock price may fluctuate for many reasons,
including as a result of public announcements regarding the progress of