Company: IXHL
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110299
Chunk: 67

Company: Incannex Healthcare Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 67
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Item 2. Management’s Discussion and Analysis of Financial
Condition and Results of Operations 

The following discussion should be read in
conjunction with the unaudited condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report
on Form 10-Q (this “Quarterly Report”). This Quarterly Report contains forward-looking statements. This discussion and analysis
contain forward looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the
“Risk Factors” section in our Annual Report on Form 10-K, as filed with the SEC on September 29, 2025 (the “2025 Annual
Report”). We caution the reader not to place undue reliance on these forward-looking statements, which
reflect management’s analysis only as of the date of this Quarterly Report. We undertake no obligation to update forward-looking
statements, which reflect events or circumstances occurring after the date of this Quarterly Report. 

Our accounting policies under U.S. GAAP are referred
to in Note 2 of the unaudited condensed consolidated financial statements in this Quarterly Report. All amounts are in United States
dollars, unless otherwise indicated.

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, which are currently in Phase 2/3 and Phase 2 clinical developments, 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.

Results of Operations

Comparison of the Three Months
Ended September 30, 2025 and 2024

The following tables summarize our results of
operations for the periods presented (in thousands):

    For the Three Months Ended  September 30  

    2025  
    2024  
    $ Change  
    % Change 
  
    Revenue from customers 
    $-  
    $74  
    $(74) 
     (100)%
  
    Operating expenses: 

    Research and development 
     (1,120) 
     (2,896) 
     1,776  
     (61)%
  
    General and administrative