Company: IXHL
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013783
Chunk: 20

Company: Incannex Healthcare Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 (Years)   Aggregate Intrinsic Value  (in thousands) ($)   Outstanding as of September 30, 2024   235,008    28.00    1.93              -   Granted   -    -    -    -   Exercised   -    -    -    -   Cancelled or forfeited   -    -    -    -   Outstanding as of December 31, 2024   235,008    28.00    1.43    -   Unvested as of December 31, 2024   14,001    24.26    3.5    -  

The aggregate intrinsic value of share options is calculated as the
difference between the exercise price of the share options and the fair value of the Company’s Common Stock for those options with
exercise prices lower than the fair value of the Company’s Common Stock.

As of December 31, 2024, there was $56,727 of unrecognized
compensation cost related to unvested share options, which is expected to be recognized over a weighted-average period of 0.5 years. 

Note 12 – Fair value of Financial
Instruments

Cash and cash equivalents, accounts receivable
(including assets pledged as security for short-term debt and R&D tax incentive receivable), prepaid expenses and other current assets,
accounts payable, accrued expenses, and current liabilities are reflected on the consolidated balance sheets at amounts that approximate
fair value because of the short-term nature of these financial assets and liabilities.

The fair value of the Company’s debt approximates
its carrying value and is classified as Level 3 within the fair value hierarchy, as it is derived from discounted cash flows using a current
borrowing rate.

ELOC Purchase Agreement

The Company evaluated the ELOC Purchase Agreement
to determine whether it should be accounted for under ASC 815-40, “Derivatives and Hedging - Contracts on an Entity’s Own
Equity,” (“ASC 815-40”) and concluded that it is an equity-linked contract that does not qualify for equity classification.
Therefore, it requires fair value accounting as a derivative. The Company has analyzed the terms of the ELOC Purchase Agreement as a freestanding