Company: IXHL
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110299
Chunk: 72

Company: Incannex Healthcare Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 72
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 through the sale of equity securities, proceeds
from the exercise of options, tax grants from R&D activities and interest income.

We incurred total comprehensive losses of $6.2 million and $5.1 million
for the three months ended September 30, 2025 and three months ended September 30, 2024, respectively. We incurred net losses of $6.4
million and $5.4 million for the three months ended September 30, 2025 and three months ended September 30, 2024, respectively. As of
September 30, 2025, we had accumulated deficit of $164.0 million.

As of September 30, 2025, we had cash and cash
equivalents of $73.3 million. Although we expect our negative cash flows from operating activities to continue, we believe our current
cash balances, together with anticipated cash flows and available financing arrangements, provide sufficient resources to meet our obligations
and sustain operations for at least one year from the issuance date of the financial statements included in this Quarterly Report.

For the three months ended September 30, 2025, we experienced net cash
used in operating activities of $9.2 million, an increase of $7.0 million compared to the three months ended September 30, 2024. As of
September 30, 2025, we had cash and cash equivalents of $73.3 million, an increase of $58.3 million compared to our cash and cash equivalents
as of June 30, 2025 of $15.0 million. As of September 30, 2025, our current assets exceed our current liabilities by $76.6 million, a
$63.7 million increase compared to the difference between our current assets and current liabilities as of June 30, 2025 of $13.0 million.

On October 22, 2025, the Company repurchased 1,480,000 shares of its common stock at a price of $0.41 per share, for a total cost of $600,000.
This repurchase reduced the number of outstanding shares to 346,225,507 from 347,705,507. The Company will continue to assess market conditions
and may deploy the buyback program at its discretion as appropriate.

Going Concern

Refer to Note 2 – Basis of Presentation
and Summary of Significant Accounting Policies – Going Concern Basis

Off-Balance Sheet Arrangements 

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