Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 325

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 325
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 those drug candidates may be adversely affected and we may not be able to prevent competitors from making, using,
importing, offering to sell or selling competing products. In addition, even where we now have the right to control patent prosecution
of patent applications or the maintenance of patents, we have licensed from third parties, presently or in the future, we may still be
adversely affected or prejudiced by actions or inactions of our licensors in effect from actions prior to us assuming control over patent
prosecution.

Confidentiality and invention assignment agreements with our
employees, advisors and consultants may not adequately prevent disclosure of trade secrets and protect other proprietary information.

We consider proprietary trade secrets and/or confidential
know-how and unpatented know-how to be important to our business. We may rely on trade secrets and/or confidential know-how to protect
our technology, especially where patent protection is believed by us to be of limited value. However, trade secrets and/or confidential
know-how can be difficult to maintain as confidential.

To protect this type of information against disclosure
or appropriation by competitors, our policy is to require our employees, advisors and consultants to enter into confidentiality and invention
assignment agreements with us. However, current or former employees, advisors and consultants may unintentionally or willfully disclose
our confidential information to competitors, and confidentiality and invention assignment agreements may not provide an adequate remedy
in the event of unauthorized disclosure of confidential information. Enforcing a claim that a third party obtained illegally and is using
trade secrets and/or confidential know-how is expensive, time consuming and unpredictable. The enforceability of confidentiality and invention
assignment agreements may vary from jurisdiction to jurisdiction.

Failure to obtain or maintain trade secrets and/or
confidential know-how trade protection could adversely affect our competitive position. Moreover, our competitors may independently develop
substantially equivalent proprietary information and may even apply for patent protection in respect of the same. If successful in obtaining
such patent protection, our competitors could limit our use of our trade secrets and/or confidential know-how, our competitive position
or commercial advantage may be impaired and our business and results of operations may be adversely affected.

74

We may be subject to claims that our employees, consultants or
independent contractors wrongfully used or disclosed alleged confidential information of third parties or that our employees wrongfully
used or disclosed alleged trade secrets of their former employers.

We employ individuals who were previously employed
at universities or other biotechnology or pharmaceutical companies, including potential competitors. If we fail in defending any such
claims