Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 28

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 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 (“Nasdaq”) for the trading day specified in the sale notice (same trading day or one trading day
following such notice) delivered to Arena Global. The ELOC Purchase Agreement will terminate automatically upon the earliest to occur
of (i) the first day of the month next following the 36-month anniversary of the date of the ELOC Purchase Agreement; or (ii) the date
on which Arena Global shall have purchased shares of our common stock under the ELOC Purchase Agreement for an aggregate gross purchase
price equal to the Commitment Amount (as defined in the ELOC Purchase Agreement). In connection with the ELOC Purchase Agreement we agreed,
among other things to issue to Arena Global, as a commitment fee, that number of shares of our common stock equal to 250,000 divided by
the simple average of the daily VWAP of our common stock during the five