Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 334

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 334
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 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If securities or industry analysts do not publish, or cease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 research or reports, about us, our business or our market, or if they change
their recommendations regarding our stock adversely, our stock price and trading volume could decline.

The trading market for our common stock will be
influenced, in part, by the research and reports that industry or financial research analysts publish about us and our business. We do
not have any control over these analysts. If only a few securities or industry analysts commence coverage of our company, the trading
price for our stock would likely be negatively affected and there can be no assurance that analysts will provide favorable coverage.
If securities or industry analysts who initiate coverage downgrade our stock or publish inaccurate or unfavorable research about our
business or our market, our