Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 488

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1C
Chunk 488
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 financial statements
included in this report have been prepared in accordance with accounting principles generally accepted in the United States (“US
GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).

Reference is frequently made herein to the Financial
Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”). This is the source of authoritative
US GAAP recognized by the FASB to be applied to non-governmental entities.

Going concern basis

The financial report has been prepared on the going
concern basis, which assumes continuity of normal business activities and the realization of assets and the settlement of liabilities
in the ordinary course of business.

The Company has incurred total comprehensive losses
of $46.7 million and $18.5 million for the fiscal years ended June 30, 2025 and 2024, respectively, and experienced net cash outflows
from operating activities of $12.5 million and $15.8 million for the fiscal years ended June 30, 2025 and 2024, respectively.

As of June 30, 2025 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