Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 161

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 161
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 drug candidates, administration,
and other costs of doing business. We may experience material increases in the prices of labor and other costs of doing business. In an
inflationary environment, cost increases may materially outpace our expectations, causing us to use our cash and other liquid assets faster
than forecasted. If this happens, we may need to raise additional capital to fund our operations, which may not be available in sufficient
amounts or on reasonable terms, if at all, sooner than expected.

Changes in interpretation or application of account principles
generally accepted in the United States (“US GAAP”) may adversely affect our operating results.

We prepare our consolidated financial statements
to conform to US GAAP. These principles are subject to interpretation by the Financial Accounting Standards Board, American Institute
of Certified Public Accountants, the SEC and various other regulatory and accounting bodies. A change in interpretations of, or our application
of, these principles can have a significant effect on our reported results and may even affect our reporting of transactions completed
before a change is announced. In addition, when we are required to adopt new accounting standards, our methods of accounting for certain
items may change, which could cause our results of operations to fluctuate from period to period and make it more difficult to compare
our financial results to prior periods.

If our information technology systems or data, or those of third
parties upon which we rely, are or were compromised, we could experience adverse consequences, including regulatory investigations or
actions, litigation, fines and penalties, disruptions of our business operations, reputational harm, and other loss of revenue or profits.

In the ordinary course of our business, we may
collect, store, use, transmit, disclose, or otherwise process proprietary, confidential, and sensitive information, including personal
information (such as health-related information), data related to clinical trials, intellectual property, and trade secrets. We may rely
upon third party service providers and technologies to operate critical business systems to process such information in a variety of contexts,
including, without limitation, third-party providers of cloud-based infrastructure, encryption and authentication technology, employee
email, and other functions. Our ability to monitor these third parties’ cybersecurity practices is limited, and these third parties
may not have adequate information security measures in place.

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Despite our implementation of security measures,
our internal information technology systems and those of our clinical sites, and other contractors and consultants upon which we rely
are vulnerable to cyberattacks, computer viruses, bugs, worms, or other malicious