Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 119

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 119
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 exempt entities. We anticipate being entitled
to a claim of 48.5% refundable tax offset for costs relating to eligible R&D activities during the year. Such incentives provide material
resources to conduct our business operations.

However,
we have no control on the rate of R&D tax incentives or on the conditions to receive these incentives. Certain R&D costs that
we incur in the future may be ineligible for cash incentives. For example, costs incurred outside Australia in connection with our future
clinical trials are generally not eligible for cash incentives. In addition, the federal government of Australia and the Australian Taxation
Office (“ATO”) could change the rules of the regulatory regime or amend past tax returns and, as a result, amounts paid to
us may become repayable to the ATO, including the amount of tax incentives in respect to our fiscal year ended June 30, 2024, which is
included as current receivables in our consolidated financial statements. Any rule changes made to reduce the amount we are able to claim
currently or in the future and any retrospective changes that reduce the incentives that we have claimed in past tax years could harm
our business, financial condition and results of operations.

We expect that we will
need substantial additional funding to continue the development of our drug candidates. If we are unable to raise capital when needed
or to do so on terms that are favorable to us, we could again be forced to delay, reduce or eliminate our development programs or commercialization
efforts or reduce or scale back our operations.

To date, we have not generated any revenue from
product sales to customers and none of our drug candidates have been approved for commercialization by any regulatory body. We do not
expect to receive any material revenue from any drug candidates that we develop, including IHL-42X, PSX-001, and IHL-675A, unless and
until we obtain regulatory approval for these candidates. Our future net losses will depend, in large part, on our success in developing
our drug candidates. Correspondingly, the amount of our future net losses will depend, in part, on the rate of our future expenditures.

42

We
anticipate that our expenses will increase substantially for the foreseeable future if, and as, we:

●continue
                                            our research and preclinical and clinical development of our drug candidates;

●expand
                                            the scope of our current proposed clinical studies for our drug candidates;

●initiate
                                            additional preclinical, clinical or other studies for our