Company: IXHL
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013783
Chunk: 39

Company: Incannex Healthcare Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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3 million for the six months ended December 31, 2024 and six months ended December 31, 2023, respectively.
As of December 31, 2024, we had accumulated deficit of $122.0 million.

As of December 31, 2024, we had cash and cash equivalents of $2.1 million.
We expect our negative cash flows from operating activities to continue and thus have determined that the losses and negative cash flows
from operations and uncertainty in generating sufficient cash to meet our obligations and sustain our operations raise substantial doubt
about our ability to continue as a going concern for at least one year from the issuance date of the financial statements included in
this Quarterly Report. We do not currently have an update to our previously disclosed cash runway estimate. We have based our cash runway
estimates on assumptions that may prove to be incorrect, and we could use our capital resources sooner than we currently expect.

For the six months ended December 31, 2024, we
experienced net cash used in operating activities of $7.9 million, an increase of $0.1 million compared to the six months ended December
31, 2023. As of December 31, 2024, we had cash and cash equivalents of $2.1 million, a decrease of $3.8 million compared to our cash and
cash equivalents as of June 30, 2024 of $5.9 million. As of December 31, 2024, our current assets exceed our current liabilities by $4.7
million, a $5.9 million decrease compared to the difference between our current assets and current liabilities as of June 30, 2024 of
$10.6 million.

21

Going Concern

Refer to Note 2 – Basis of Presentation and Summary
of Significant Accounting Policies – Going Concern Basis

Off-Balance Sheet Arrangements 

We did not have, during the periods presented,
and we do not currently have, any off-balance sheet arrangements, as defined in the rules and regulations of the SEC.

Cash Flows 

Comparison of cash flows for the for the six months ended December
31, 2024 and six months ended December 31, 2023

The following table summarizes our
cash flows for the periods presented (in thousands):

    For the  Six Months Ended December 31, 2024  
    For the  Six Months Ended December 31, 2023 
  
    Net