Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 426

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 426
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 to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses
and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes.

The most significant estimates and assumptions
in the Company’s consolidated financial statements include the valuation of equity-based instruments issued for other than cash,
accrued research and development (“R&D”) expense, R&D tax credit. Estimates are periodically reviewed in light of
changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results
could differ materially from those estimates.

Risks and Uncertainties

The Company is subject to risks and uncertainties
common to companies in the biopharmaceutical industry. The Company believes that changes in any of the following areas could have a material
adverse effect on future financial position or results of operations: ability to obtain future financing; regulatory approval and market
acceptance of, and reimbursement for, drug candidates; performance of third-party clinical research organizations and manufacturers upon
which the Company relies; protection of the Company’s intellectual property; litigation or claims against the Company based on intellectual
property, patent, product, regulatory or other factors; the Company’s ability to attract and retain employees.

There can be no assurance that the Company’s
R&D will be successfully completed, that adequate protection for the Company’s intellectual property will be obtained or maintained,
that any products developed will obtain necessary government regulatory approval or that any approved products will be commercially viable.
Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant
revenue from product sales. The Company operates in an environment of rapid technological change and substantial competition from other
pharmaceutical and biotechnology companies. In addition, the Company is dependent upon the services of its employees, consultants and
other third parties.

Concentration of Credit Risk

Financial instruments that potentially subject
the Company to concentration of credit risk consist primarily of cash and cash equivalents. The Company has not experienced any losses
in such accounts, and management believes that the Company is not exposed to significant credit risk due to the financial position of
the depository institutions in which those deposits are held. As of June 30, 2025 and 2024, all deposits are held in banks outside of
the United States.

Cash and Cash Equivalents

Cash and cash equivalents, which includes cash
and deposits held at call with financial institutions with original maturities of three months or less that