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

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 8
Chunk 10
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 to the Company prior to the end of the period and which are unpaid. Due to their short-term nature, they are measured
at amortized cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

Segment information

The Company operates and manages its business as
one reportable and operating segment, which is the R&D of the use of psychedelic medicine and therapies. The Company’s Chief
Executive Officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for the purposes of
allocating resources and evaluating financial performance. The Company’s long-lived assets are primarily in Australia.

F-9

Revenue Recognition

The Company recognizes revenue to depict the transfer
of goods and services to clients in an amount that reflects the consideration to which the Company expects to be entitled in exchange
for those goods and services by applying the following steps:

●Identify the contract with a client;

●Identify the performance obligations in the contract;

●Determine the transaction price;

●Allocate the transaction price to the performance obligations;
and

●Recognize revenue when, or as, the Company satisfies a performance
obligation.

Revenue may be earned over time as the performance
obligations are satisfied or at a point in time which is when the entity has earned a right to payment, the customer has possession of
the asset and the related significant risks and rewards of ownership, and the customer has accepted the asset.

The Company’s arrangements with clients can
include multiple performance obligations. When contracts involve various performance obligations, the Company evaluates whether each performance
obligation is distinct and should be accounted for as a separate unit of accounting under ASC 606-Revenue from Contracts with Customers
(“ASC 606”), Revenue from Contracts with Customers.

The Company determines the standalone selling price
by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include discounting
practices, the size and volume of our transactions, our marketing strategy, historical sales, and contract prices. The determination of
standalone selling prices is made through consultation with and approval by management, taking into consideration our go-to-market strategy.
As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result
in changes in relative standalone selling prices.

The Company disaggregates revenue from contracts
with customers based on the categories that most closely depict how the nature, amount, timing and uncertainty of revenue and cash flows
are affected by economic