Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 36

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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    ●
    the timing, receipt, and terms of any approvals from applicable regulatory authorities; and

    ●
    the extent to which we establish additional collaboration, license, or other arrangements.

A change in the outcome of any of these variables
with respect to the development of our drug candidates could significantly change the costs and timing associated with the development
of that drug candidate. We may never succeed in obtaining regulatory approval for any drug candidate.

General and Administrative

General and administrative expenses consist primarily
of personnel-related expenses finance and accounting, human resources and other administrative functions, including salaries, stock-based
compensation and benefits for employees, legal fees, expenses relating to patent and corporate matters and professional fees paid for
accounting, auditing, consulting and tax services, as well as facilities-related costs not otherwise included in research and development
expenses and other costs such as insurance costs and travel expenses.

General and administrative expenses decreased by
$1.9 million for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The decrease was primarily
attributable to a decrease in employee benefits, resulting from a reduction in the amount of restricted stock issued to our directors
and officers.

General and administrative expenses decreased by
$2.5 million for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024. The decrease was primarily attributable
to a decrease in employee benefits, resulting from a reduction in the amount of restricted stock issued to our directors and officers.

We anticipate our general and administrative expenses
will increase substantially in the future as we expand our operations, including increasing our headcount to support our continued research
and development activities and preparing for potential commercialization of our drug candidates. We also anticipate we will incur increased
accounting, audit, legal, regulatory, compliance, director and officer insurance, and investor and public relations expenses associated
with operating as a U.S. public company.

25

Other Income (Expense)

Benefit from R&D tax credit 

We receive tax incentives
from the Australian government for research and development activities. Subject to certain exclusions, the Australian Government tax incentives
provide benefits for eligible research and development activities.  Entities are entitled to either (i) a 48.5% refundable tax
offset for eligible companies with an aggregated turnover of less than A$20 million per annum or (ii) a non-refundable 38.5%