Company: IXHL
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013783
Chunk: 150

Company: Incannex Healthcare Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 3
Chunk 150
---
, as applicable; (b) developing and implementing written policies and procedures for accounting and financial
reporting that meet the standards applied to public companies listed in the United States; and (c) providing internal control training
to management, key operations personnel, and the accounting department, so that management and relevant personnel understand the requirements
and elements of internal control over financial reporting mandated by the U.S. securities laws.

We believe we have made
progress in accordance with our remediation plan even though the material weaknesses will not be considered remediated until we have completed
implementing the necessary additional applicable controls and operate with them for a sufficient period of time to allow management and
our auditors to concluded that these controls are operating effectively.

We cannot determine when
our remediation plan will be fully completed and we cannot provide any assurance that these remediation efforts will be successful or
that our internal control over financial reporting will be effective as a result of these efforts.

Changes in Internal Control over Financial
Reporting

Other than the remediation
of the material weakness discussed above, there were no changes in our internal controls over financial reporting, as defined in Rules
13a-15(d) and 15d-15(d) under the Exchange Act, that occurred during the three and six months ended December 31, 2024 that have materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.

24

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may become involved in litigation
or other legal proceedings arising in the ordinary course of our business. We are not currently a party to any material litigation or
legal proceedings that, in the opinion of our management, are likely to have a material adverse effect on our business. Regardless of
outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, negative
publicity, reputational harm and other factors.

Item 1A. Risk Factors

Except as
set forth below, there have been no material changes to the risk factors set forth in Part I, Item 1A, “Risk Factors,” of
the 2024 Annual Report.

If we are unable to maintain or regain compliance with the requirements
of the Nasdaq Global Market, this could result in the delisting of our Common Stock. A delisting of our Common Stock from the Nasdaq Global
Market could adversely affect our ability to raise additional capital through the public or private sale of equity