Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 312

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 312
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, agents or contractors, or those of our affiliates, will
comply with all applicable laws and regulations, particularly given the high level of complexity of these laws. Violations of these laws
and regulations could result in fines, criminal sanctions against us, our officers or our employees, the closing down of our facilities,
requirements to obtain export licenses, cessation of business activities in sanctioned countries, implementation of compliance programs
and prohibitions on the conduct of our business. Any such violations could include prohibitions on our ability to offer our products,
if approved, in one or more countries and could materially damage our reputation, our brand, our international expansion efforts, our
ability to attract and retain employees and our business, prospects, operating results and financial condition.

We incur, and will continue to incur, costs and expect significantly
increased costs as a result of operating as a public company, and our management is now required to devote substantial time to new compliance
initiatives.

As a public company listed on the Nasdaq Capital
Market, and particularly if we cease to be a “smaller reporting company,” we are incurring and will continue to incur significant
legal, accounting and other expenses that we did not incur as a private company or as a public company without such specified statuses.
We are subject to the reporting requirements of the Exchange Act, as well as various requirements imposed by the Sarbanes-Oxley Act, rules
subsequently adopted by the SEC and Nasdaq to implement provisions of the Sarbanes-Oxley Act, and the Dodd-Frank Wall Street Reform and
Consumer Protection Act. Stockholder activism, the current political environment and the current high level of government intervention
and regulatory reform may lead to substantial new regulations and disclosure obligations, which may lead to additional compliance costs
and impact the manner in which we operate our business in ways we cannot currently anticipate. The listing requirements of the Nasdaq
Capital Market require that we satisfy certain corporate governance requirements relating to director independence, distributing annual
and interim reports, stockholder meetings, approvals and voting, soliciting proxies, conflicts of interest and a code of conduct, each
of which requires additional attention and effort of management and our board of directors and additional costs.

We expect the rules and regulations applicable
to public companies to continue to result in substantial legal and financial compliance costs and to continue to make some activities
more time-consuming and costly. For example, we expect these rules and regulations to make it more difficult and more expensive for us
to obtain director and officer