Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 176

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 176
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 any, may not be commercially meaningful. Accordingly, our efforts
to enforce our intellectual property rights around the world may be inadequate to obtain a significant commercial advantage from the intellectual
property that we develop or license.

Intellectual property rights of third parties could adversely
affect our ability to commercialize our drug candidates, such that we could be required to litigate with or obtain licenses from third
parties in order to develop or market our drug candidates.

Our commercial success may depend upon our future
ability and the ability of our potential collaborators to develop, manufacture, market and sell our drug candidates without infringing
on valid intellectual property rights of third parties. If a third-party intellectual property right exists it may require the pursuit
of litigation or administrative proceedings to nullify or invalidate the third-party intellectual property right concerned, or entry into
a license agreement with the intellectual property right holder, which may not be available on commercially reasonable terms, if at all.

Third-party intellectual property right holders,
including our competitors, may bring infringement claims against us. We may not be able to successfully settle or otherwise resolve such
infringement claims. If we are unable to successfully settle future claims or otherwise resolve such claims on terms acceptable to us,
we may be required to engage in or continue costly, unpredictable and time-consuming litigation and may be prevented from, or experience
substantial delays in, marketing our drug candidate. There have been many lawsuits and other proceedings involving patent and other intellectual
property rights in the biotechnology and pharmaceutical industries, including patent infringement lawsuits, interferences, oppositions
and reexamination proceedings before the USPTO and corresponding international patent offices. Third parties own numerous U.S. and international
issued patents and pending patent applications in the fields in which we are developing drug candidates. As the biotechnology and pharmaceutical
industries expand and more patents are issued, the risk increases that our drug candidates may be subject to claims of infringement of
the patent rights of third parties. Parties making patent infringement claims against us may obtain injunctive or other equitable relief,
which could effectively block our ability to further develop and commercialize one or more of our drug candidates. Defense of these claims,
regardless of their merit, may involve substantial litigation expenses and may require a substantial diversion of resources from our business.
In the event of a successful claim of patent infringement against us, we may have to pay substantial damages, including treble damages
and attorneys’ fees for willful infringement, pay royalties, redesign our infringing products or obtain