Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 171

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 171
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as a foreign exchange adjustment to other comprehensive income, a component of stockholders’ equity. We do not believe that a hypothetical
10% increase or decrease in the relative value of the U.S. dollar to other currencies would have had a material effect on our consolidated
financial statements included in Part II, Item 8 “Financial Statements and Supplementary Data” of this Annual Report. We
do not currently maintain a program to hedge exposures to non-U.S. dollar currencies.

68

We write business on a global basis, and our results
of operations may be affected by fluctuations in the value of currencies other than the U.S. Dollar. The primary international currencies
in which we currently operate are the Australian Dollar. However, in the future, we expect to derive a significant portion of our net
revenue and incur a significant portion of our operating costs inside the United States, and changes in exchange rates may have a significant,
and potentially adverse, effect on our results of operations. Changes in foreign currency exchange rates could reduce our revenues or
increase our liabilities and costs. We could therefore suffer losses solely as a result of exchange rate fluctuations. We cannot assure
you that we will be able to manage these risks effectively or that they will not have an adverse effect on our business, financial condition
or results of operations.

There is a scarcity of experienced professionals
in our industry. If we are not able to retain and recruit personnel with the requisite technical skills, we may be unable to successfully
execute our business strategy.

The specialized nature of our industry results
in an inherent scarcity of experienced personnel in the field. Our future success depends upon our ability to attract and retain highly
skilled personnel, including scientific, technical, laboratory, sales, marketing, business, regulatory, and administrative personnel necessary
to support our anticipated growth, develop our business, and perform certain contractual obligations. Given the scarcity of professionals
with the scientific knowledge that we require and the competition for qualified personnel among life science businesses, we may not succeed
in attracting or retaining the personnel we require to continue and grow our operations. If we are not able to attract and retain necessary
personnel and consultants to accomplish our business objectives, we may experience constraints that will significantly impede the achievement
of our development and commercial objectives, our ability to raise additional capital and our ability to implement our business strategy.

Our industry has experienced a high rate of turnover
of management personnel in recent years. We are highly dependent on the development, regulatory, commercialization and business development
expertise