Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 164

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 164
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 of our privacy and security practices, that such coverage will continue to be
available on commercially reasonable terms or at all, or that such coverage will pay future claims.

65

If any cybersecurity incidents referenced above
were to occur and cause interruptions in our operations, it could result in a disruption of our business and development programs. For
example, the loss of clinical trial data from completed or ongoing clinical trials for a drug candidate could result in delays in our
regulatory approval efforts and significantly increase our costs to recover or reproduce the data or may limit our ability to effectively
execute a product recall, if required in the future. To the extent that any disruption or cybersecurity incident were to result in the
loss of or damage to our data or applications, or inappropriate disclosure of personal, confidential or proprietary information, we could
incur liability and the further development of any drug candidates could be delayed. Additionally, applicable data privacy and security
obligations may require us to notify relevant stakeholders of cybersecurity incidents. Such disclosures are costly, and the disclosures
or the failure to comply with such requirements could lead to adverse consequences. If we (or a third party upon whom we rely) experience
a cybersecurity incident or are perceived to have experienced a cybersecurity incident, we may experience adverse consequences. These
consequences may include: government enforcement actions (for example, investigations, fines, penalties, audits, and inspections), additional
reporting requirements and/or oversight, restrictions on processing information (including personal information); litigation (including
class claims), indemnification obligations, negative publicity, reputational harm, monetary fund diversions, financial loss, and other
similar harms. Cybersecurity incidents and attendant consequences may also deter new clinical trial participants from participating in
our services and negatively impact our ability to operate our business.

Our business is subject to complex and evolving U.S. federal
and state, and international laws and regulations, imposing obligations on how we collect, use, disclose, store and process personal data.
We are also subject to information security policies and contractual obligations relating to privacy and data protection, including the
use, processing, and cross-border transfer of personal data. The actual or perceived failure by us or vendors to comply with these laws
and regulations, policies and contractual obligations could harm our business and/or reputation, and subject us to significant fines and
liability.

We are or may become subject to domestic and international
data protection laws and regulations that address privacy and data security and may affect our collection, use, storage, and transfer
of personal