Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 120

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 120
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 drug candidates;

●change
                                            or add manufacturers or suppliers;

●seek
                                            regulatory and marketing approvals for our drug candidates that successfully complete clinical
                                            studies;

●seek
                                            to identify and validate additional drug candidates;

●acquire
                                            or in-license other drug candidates and technologies;

●maintain,
                                            protect and expand our intellectual property portfolio;

●attract
                                            and retain skilled personnel;

●create
                                            additional infrastructure to support our operations as a publicly quoted company and our
                                            product development and planned future commercialization efforts; and

●experience
                                            any delays or encounter issues with any of the above.

We
will need to obtain additional funding in connection with the further development of our drug candidates.

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