Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 320

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 320
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 in addition to being forced to pay damages, we or our potential collaborators may be prohibited from commercializing any drug
candidates we may develop that are held to be infringing, for the duration of the patent term. We might, if possible, also be forced to
redesign our formulations so that we no longer infringe such third-party intellectual property rights. Any of these events, even if we
were ultimately to prevail, could result in injury to our reputation or require us to divert substantial financial and management resources
that we would otherwise be able to devote to our business.

Our reliance on third parties requires us to share our trade
secrets, which increases the possibility that a competitor will discover them or that our trade secrets will be misappropriated or disclosed.

Because we collaborate with various organizations
and academic institutions on the advancement of our technology and drug candidates, we may, at times, share trade secrets with them. We
seek to protect our proprietary technology in part by entering into confidentiality agreements and, if applicable, material transfer agreements,
collaborative research agreements, consulting agreements or other similar agreements with our collaborators, advisors, employees and consultants
prior to beginning research or disclosing proprietary information. These agreements typically limit the rights of the third parties to
use or disclose our confidential information, such as trade secrets. Despite these contractual provisions, the need to share trade secrets
and other confidential information increases the risk that such trade secrets become known by potential competitors, are inadvertently
incorporated into the technology of others, or are disclosed or used in violation of these agreements. Given that our proprietary position
is based, in part, on our know-how and trade secrets, discovery by a third party of our trade secrets or other unauthorized use or disclosure
would impair our intellectual property rights and protections in our drug candidates.

In addition, these agreements typically restrict
the ability of our collaborators, advisors, employees and consultants to publish data potentially relating to our trade secrets. Our academic
collaborators typically have rights to publish data, provided that we are notified in advance and may delay publication for a specified
time in order to secure our intellectual property rights arising from the collaboration. In other cases, publication rights are controlled
exclusively by us. In other cases, we may share these rights with other parties. Despite our efforts to protect our trade secrets, our
competitors may discover our trade secrets, either through breach of these agreements, independent development or publication of information
including our trade secrets in cases where we do not have proprietary or otherwise