Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 66

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 66
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 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%
tax offset for all other eligible companies. Our aggregated turnover is less than A$20 million and not be controlled by one or more
income tax exempt entities, we anticipate being entitled to a claim of 48.5% refundable tax offset for costs relating to eligible research
and development activities during the year.

Benefit from R&D tax incentive decreased by
$0.9 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was due to a lower
estimate of our R&D tax incentive receivable for the three months ended March 31, 2025.

Benefit from R&D tax incentive decreased by
$6.0 million for the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024. The decrease was due to a lower
estimate of our R&D tax incentive receivable for the nine months ended March 31, 2025.

Foreign exchange losses and Interest Income

Foreign exchange losses decreased by $0.1 million
for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, due to favourable currency exchange rates.
Interest income decreased over the same period, reflecting lower interest received from cash deposits.

Foreign exchange losses increased by $0.3 million
for the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024, due to unfavorable currency exchange rates.
Interest income decreased over the same period, reflecting lower interest received from cash deposits.

Currency translation adjustment