Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 177

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 177
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 one or more licenses from
third parties, which may be impossible or require substantial time and monetary expenditure. Further, if we were to seek a license from
the third-party holder of any applicable intellectual property rights, we may not be able to obtain the applicable license rights when
needed or on reasonable terms, or at all. Some of our competitors may be able to sustain the costs of complex patent litigation or proceeding
more effectively than us due to their substantially greater resources. The occurrence of any of the above events could prevent us from
continuing to develop and commercialize one or more of our drug candidates and our business could materially suffer.

71

If we fail to settle or otherwise resolve any such
dispute, in addition to being forced to pay damages, we or our potential collaborators may be prohibited from commercializing any drug
candidates we may develop that are held to be infringing, for the duration of the patent term. We might, if possible, also be forced to
redesign our formulations so that we no longer infringe such third-party intellectual property rights. Any of these events, even if we
were ultimately to prevail, could result in injury to our reputation or require us to divert substantial financial and management resources
that we would otherwise be able to devote to our business.

Our reliance on third parties requires us to share our trade
secrets, which increases the possibility that a competitor will discover them or that our trade secrets will be misappropriated or disclosed.

Because we collaborate with various organizations
and academic institutions on the advancement of our technology and drug candidates, we may, at times, share trade secrets with them. We
seek to protect our proprietary technology in part by entering into confidentiality agreements and, if applicable, material transfer agreements,
collaborative research agreements, consulting agreements or other similar agreements with our collaborators, advisors, employees and consultants
prior to beginning research or disclosing proprietary information. These agreements typically limit the rights of the third parties to
use or disclose our confidential information, such as trade secrets. Despite these contractual provisions, the need to share trade secrets
and other confidential information increases the risk that such trade secrets become known by potential competitors, are inadvertently
incorporated into the technology of others, or are disclosed or used in violation of these agreements. Given that our proprietary position
is based, in part, on our know-how and trade secrets, discovery by a third party of our trade secrets or other unauthorized use or disclosure
would impair our intellectual property rights and protections in our drug candidates.

In