Company: IXHL
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110299
Chunk: 18

Company: Incannex Healthcare Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 Company did not recognize a provision or benefit for income taxes as it incurred net losses.
In addition, the net deferred tax assets generated from net operating losses were fully offset by a valuation allowance as the Company
believes it is not more likely than not that the benefit will be realized.

Note 12 – Loss per share 

Basic and diluted net loss per share attributable
to stockholders was calculated as follows (in thousands, except share and per share amounts):

    For the three months ended September 30, 

    2025$  
    2024$ 
  
    Basic and diluted loss per share – (dollars per share) 
     (0.02) 
     (0.29)
  
    The loss and weighted average number of common stock used in the calculation of basic loss per share is as follows: 

    Total comprehensive loss for the year (in thousands) 
     (6,184) 
     (5,081)
  
    - Weighted average number of common stock (number) 
     310,309,659  
     17,642,832 

The Company notes that the diluted loss per share is the same
as basic loss per share.

Note 13 – Related Party Transactions

Transactions between related parties are on commercial
terms and conditions, no more favorable than those available to other parties unless otherwise stated.

There were no amounts payable to any related parties
as of September 30, 2025 and June 30, 2025.

16

Item 2. Management’s Discussion and Analysis of Financial
Condition and Results of Operations 

The following discussion should be read in
conjunction with the unaudited condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report
on Form 10-Q (this “Quarterly Report”). This Quarterly Report contains forward-looking statements. This discussion and analysis
contain forward looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the
“Risk Factors” section in our Annual Report on Form 10-K, as filed with the SEC on September 29, 2025 (the “2025 Annual
Report”). We caution the reader not to place undue reliance on these forward-looking statements, which
reflect management’s analysis only as of the date of this Quarterly Report. We undertake no obligation to update forward-looking
statements, which reflect events or circumstances occurring after the date of this Quarterly Report. 

Our accounting policies under U.S.