Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 191

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 191
---
 board of directors authorized a share repurchase program pursuant to which we may
repurchase up to $20 million of our common stock. The manner, timing and amount of any share repurchases may fluctuate and will be determined
by us based on a variety of factors, including the market price of our common stock, our priorities for the use of cash to support our
business operations and plans, general business and market conditions, tax laws, and alternative investment opportunities. The share
repurchase program authorization does not obligate us to acquire any specific number or dollar value of shares. If we do not use the
repurchase program or declare any dividends, capital appreciation, if any, of our common stock will be the sole source of gain for our
common stockholders for the foreseeable future.

In May 2025, our stockholders authorized
us to complete a reverse stock split of our common stock which our board of directors may elect to do in an effort to regain compliance
with the Nasdaq minimum bid price requirements (the “Minimum Bid Price Rule”). Following a reverse stock split,
the resulting market price of our Common Stock may not attract new investors, including institutional investors, and may not satisfy the
investing requirements of those investors and may decline in greater proportion than the ratio of a reverse stock split. Consequently,
the trading liquidity of our Common Stock may be adversely affected if we complete a reverse stock split.

Although we believe that
a higher market price of our Common Stock may help generate greater or broader investor interest, and we may be required to complete a
reverse stock split in an effort to comply with the Minimum Bid Price Rule, there can be no assurance that a reverse stock split, including
any reverse stock split that we may complete in an effort to regain compliance with the Minimum Bid Price Rule, would actually result
in a sustained or proportional share price increase sufficient to attract new investors, including institutional investors or to regain
compliance with the Minimum Bid Price Rule. Any sustained proportionate increase in the market price of our Common Stock is dependent
upon many factors, including the success of our research and development efforts, general market conditions, trading activity in our Common
Stock and prospects for future success, which are unrelated to the number of shares of our common stock outstanding. It is not uncommon
for the market price of a company’s common stock to disproportionately decline in the period following a reverse stock split.

If securities or industry analysts do not publish, or cease
publishing, research or reports, or publish unfavorable