Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 766

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 6
Chunk 766
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Item 6. [Reserved]

Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations

You should read the following discussion and
analysis of our financial condition and results of operations together with our consolidated financial statements and the related notes
included elsewhere in this Annual Report. This discussion and analysis contains forward looking statements and involves numerous risks
and uncertainties, including, but not limited to, those described in the “Risk Factors” section of this Annual Report. Actual
results may differ materially from those contained in any forward-looking statements. For a discussion on forward-looking statements,
see the information set forth in the introductory note to this Annual Report under the caption “Special Note Regarding Forward
Looking Statements,” which information is incorporated herein by reference.

Overview

We are a clinical-stage biopharmaceutical development
company dedicated to developing innovative medicines for patients living with serious chronic diseases and significant unmet needs. Our
lead drug candidates include IHL-42X for the treatment of OSA; PSX-001, our psilocybin treatment in combination with psychological therapy
in development to treat patients with GAD; and IHL-675A for rheumatoid arthritis. Each of these programs target conditions that currently
have limited, inadequate, or no approved pharmaceutical treatment options.

Recent Developments

ATM Program Increase

On July 24, 2025, we filed a prospectus supplement
to increase the capacity of our existing “at-the-market” offering program (the “ATM”) by up to an additional
$100 million. While this filing increases the available capacity under the ATM, we are under no obligation to issue any shares of our
commons stock pursuant to the program. The expanded facility is intended to enhance our financial flexibility, providing an efficient
mechanism to access capital if, and when, deemed appropriate. Any utilization of the ATM will be at our discretion, taking into account
prevailing market conditions and strategic priorities.

84

As previously disclosed,
the ATM is conducted pursuant to the Amended and Restated Sales Agreement, dated May 28, 2025 (the “Amended and Restated Sales Agreement”)
by and among us, A.G.P./Alliance Global Partners (“A.G.P.”) and Curvature Securities, LLC (“Curvature,” and together
with A.G.P, the “Sales Agents”). Accordingly, pursuant to the prospectus supplement, the amount of shares of our common stock
that we may issue under the Amended and Restated Sales