Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 548

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 2
Chunk 548
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5 and 2024, the Company had cash
and cash equivalents of $15.0 million and $5.9 million, respectively, and current assets exceeded its current liabilities by $13.0 million
and $10.6 million, respectively.

Historically, the Company has financed its operations
to date primarily through partnerships, funds received from public offerings of common stock, a debt financing facility, as well as funding
from governmental bodies. The Company continues to plan for additional capital through the sale of common stock in public offerings and/or
private placements, debt financings, or through other capital sources, including pursuant to the ATM, collaborations with other companies
or other strategic transactions.

F-7

Based on
the Company’s unrestricted cash and cash equivalents as of June 30, 2025, the Company anticipates that it will be able to fund its
planned operating expenses and capital expenditure requirements into for at least twelve months from the date of these financial statements.

Principles of Consolidation

The accompanying consolidated financial statements
include the accounts of the Company and its wholly-owned subsidiaries. Details of all controlled entities are set out in Note 1 - “Company
Overview.” All intercompany balances and transactions have been eliminated on consolidation.

Use of Estimates

The preparation of financial statements in conformity
with US GAAP requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses
and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes.

The most significant estimates and assumptions
in the Company’s consolidated financial statements include the valuation of equity-based instruments issued for other than cash,
accrued research and development (“R&D”) expense, R&D tax credit. Estimates are periodically reviewed in light of
changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results
could differ materially from those estimates.

Risks and Uncertainties

The Company is subject to risks and uncertainties
common to companies in the biopharmaceutical industry. The Company believes that changes in any of the following areas could have a material
adverse effect on future financial position or results of operations: ability to obtain future financing; regulatory approval and market
acceptance of, and reimbursement for, drug candidates; performance of third-party clinical research organizations and manufacturers upon
which the Company relies; protection of the Company’s intellectual property; litigation or claims against the Company based on intellectual
property, patent, product, regulatory or