Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 263

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 263
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Any
additional equity fundraising in the capital markets may be dilutive for our stockholders. To the extent that we raise additional capital
through the sale of equity, convertible debt or other securities convertible into equity, the ownership interest of our stockholders
will be diluted, and the terms of new securities may include liquidation or other preferences that adversely affect rights of our stockholders.
Debt financing, if available at all, would likely involve agreements that include covenants limiting or restricting our ability to take
specific actions, such as incurring additional debt, making capital expenditures, completing acquisitions or declaring or paying dividends.
If we raise additional funds through strategic collaborations or licensing arrangements with third parties, we may have to relinquish
valuable rights to our drug candidates or future revenue streams or grant licenses on terms that are not favorable to us.

As
noted above, we also have historically received, and may receive in the future, tax incentives for R&D. These tax incentives have
been, and any future government grants and contracts we may receive may be, subject to the risks and contingencies set forth above this
section in the risk factor titled “We rely on R&D tax incentives to provide resources to conduct our business operations.
If the amount of R&D tax incentives decreases our business operations may be materially affected.” Although we might apply
for additional tax incentives, government contracts or grants in the future, we cannot assure that we will be successful in obtaining
these for any drug candidates or programs.

Our ability to obtain additional financing will
be subject to a number of factors, including market conditions, our operating performance and investor sentiment. As such, additional
financing may not be available to us when needed, on acceptable terms, or at all. In addition, disruptions and volatility in recent years
in the financial markets have made equity and debt financing more difficult to obtain and may have a material adverse effect on our ability
to meet our fundraising needs. During the past year, we delayed the development of our drug candidate IHL-675A due to a lack of financial
resources. If we are again unable to secure sufficient capital to fund our operations, then we may be required to again delay, limit,
reduce or terminate our drug development or future commercialization efforts or grant rights to third parties to develop and market drug
candidates that we would otherwise prefer to develop and market ourselves. Moreover, we could also have to relinquish valuable rights
to our technologies, future revenue streams, research programs or drug candidates or grant licenses on