Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 160

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 160
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 of the substances
included in our drug candidates, nor provide any possibilities for an exemption or regulatory approval that could allow for the lawful
use or production of such substances. In addition, these jurisdictions may prohibit any form of contributing to the production or use
of these drug candidates and may also directly or indirectly prohibit the receipt of any benefits following from the production and sale
of these substances. Under circumstances, this may have consequences for the legality of the purchase of our shares or receipt of dividends
in or from international jurisdictions.

If certain international
authorities consider it illegal to invest in our company, this will negatively affect the possibility to commercialize and generate revenue
in the country of interest. Any investigations of authorities against international investors could generate negative publicity.

63

Risks Related to Our Business Operations

Our R&D efforts will be jeopardized if we are unable to retain
key personnel and cultivate key academic and scientific collaborations.

Changes in our senior management could be disruptive
to our business and may adversely affect our operations. For example, when we have changes in senior management positions, we may elect
to adopt different business strategies or plans. Any new strategies or plans, if adopted, may not be successful and if any new strategies
or plans do not produce the desired results, our business may suffer.

Moreover, competition among biotechnology and pharmaceutical
companies for qualified employees is intense and as such, we may not be able to attract and retain personnel critical to our success.
Our success depends on our continued ability to attract, retain and motivate highly qualified management, clinical and scientific personnel,
manufacturing personnel, sales and marketing personnel and on our ability to develop and maintain important relationships with clinicians,
scientists and leading academic and health institutions. If we fail to identify, attract, retain and motivate these highly skilled personnel,
we may be unable to continue our product development and commercialization activities.

In addition, biotechnology and pharmaceutical industries
are subject to rapid and significant technological change. Our drug candidates may be or become uncompetitive. To remain competitive,
we must employ and retain suitably qualified staff that are continuously educated to keep pace with changing technology but may not be
in a position to do so.

Inflation may adversely affect us by materially increasing our
costs.

Recently, inflation has increased throughout the
U.S. economy. While we do not believe we have been materially affected by inflation as of the date of this Annual Report, inflation can
adversely affect us by materially increasing the costs of clinical trials and research, the development of our