Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 57

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 57
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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 30, 2024 (the “2024 Annual Report”)
and this Quarterly 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. GAAP are referred
to in Note 1 of the unaudited condensed consolidated financial statements in this Quarterly Report. All amounts are in United States dollars,
unless otherwise indicated.

Overview

We are a clinical-stage biopharmaceutical development
company dedicated to developing innovative medicines for patients living with serious chronic diseases and significant unmet needs. Our
lead drug candidates, which are currently in Phase 2/3 and Phase 2 clinical developments, include IHL-42X for the treatment of OSA; PSX-001,
our psilocybin treatment in combination with psychological therapy in development to treat patients with GAD; and IHL-675A for rheumatoid
arthritis. Each of these programs target conditions that currently have limited, inadequate, or no approved pharmaceutical treatment options.

Recent Developments

Equity-Line of Credit Purchase
Agreement

On September 6, 2024, we entered into an equity
line of credit Purchase Agreement (the “ELOC Purchase Agreement”) with Arena Business Solutions Global SPC II, Ltd (“Arena
Global”). Under the ELOC Purchase Agreement Arena Global has committed to purchase up to $50 million of our common stock par value
$0.0001 per share, at our direction from time to time, subject to the satisfaction of the conditions in the ELOC Purchase Agreement. The
purchase price per share of our common stock is obtained by multiplying by 96% the daily volume weighted average price (“VWAP”)
on The Nasdaq Global Market (“Nas