Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 319

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 319
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of litigation or administrative proceedings to nullify or invalidate the third-party intellectual property right concerned, or entry into
a license agreement with the intellectual property right holder, which may not be available on commercially reasonable terms, if at all.

Third-party intellectual property right holders,
including our competitors, may bring infringement claims against us. We may not be able to successfully settle or otherwise resolve such
infringement claims. If we are unable to successfully settle future claims or otherwise resolve such claims on terms acceptable to us,
we may be required to engage in or continue costly, unpredictable and time-consuming litigation and may be prevented from, or experience
substantial delays in, marketing our drug candidate. There have been many lawsuits and other proceedings involving patent and other intellectual
property rights in the biotechnology and pharmaceutical industries, including patent infringement lawsuits, interferences, oppositions
and reexamination proceedings before the USPTO and corresponding international patent offices. Third parties own numerous U.S. and international
issued patents and pending patent applications in the fields in which we are developing drug candidates. As the biotechnology and pharmaceutical
industries expand and more patents are issued, the risk increases that our drug candidates may be subject to claims of infringement of
the patent rights of third parties. Parties making patent infringement claims against us may obtain injunctive or other equitable relief,
which could effectively block our ability to further develop and commercialize one or more of our drug candidates. Defense of these claims,
regardless of their merit, may involve substantial litigation expenses and may require a substantial diversion of resources from our business.
In the event of a successful claim of patent infringement against us, we may have to pay substantial damages, including treble damages
and attorneys’ fees for willful infringement, pay royalties, redesign our infringing products or obtain one or more licenses from
third parties, which may be impossible or require substantial time and monetary expenditure. Further, if we were to seek a license from
the third-party holder of any applicable intellectual property rights, we may not be able to obtain the applicable license rights when
needed or on reasonable terms, or at all. Some of our competitors may be able to sustain the costs of complex patent litigation or proceeding
more effectively than us due to their substantially greater resources. The occurrence of any of the above events could prevent us from
continuing to develop and commercialize one or more of our drug candidates and our business could materially suffer.

71

If we fail to settle or otherwise resolve any such
dispute,