Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 10

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 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, product 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
research and development 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.

Significant Accounting Policies

The following is provided to update the Company’s
significant accounting policies previously disclosed in Note 2 to the Consolidated Financial Statements described in the Company’s
2024 Annual Report.

Equity-Line of Credit Purchase Agreement

On September 6, 2024, the Company entered into
an equity line of credit Purchase Agreement (the “ELOC Purchase Agreement”) with Arena Business Solutions Global SPC II, Ltd
(“Arena Global”). Under the ELOC Purchase Agreement, Arena Global has committed to purchase up to $50 million of the Company’s
Common Stock par value $0.0001 per share (the “Common Stock”), at the Company’s direction from time to time, subject
to the satisfaction of the conditions in the ELOC Purchase Agreement.

7

Note 2 – Basis of Presentation and Summary of Significant
Accounting Policies (continued)

The purchase price per share of Common Stock is
obtained by multiplying by 96% the daily volume weighted average price (“VWAP”) on The Nasdaq Global Market (“Nasdaq”)
for the trading day specified in the sale notice (same trading day or one trading day following such notice) delivered