Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 8

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 8
Chunk 8
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 have a material
adverse effect on future financial position or results of operations: ability to obtain future financing; regulatory approval and market
acceptance of, and reimbursement for, drug candidates; performance of third-party clinical research organizations and manufacturers upon
which the Company relies; protection of the Company’s intellectual property; litigation or claims against the Company based on intellectual
property, patent, product, regulatory or other factors; the Company’s ability to attract and retain employees.

There can be no assurance that the Company’s
R&D will be successfully completed, that adequate protection for the Company’s intellectual property will be obtained or maintained,
that any products developed will obtain necessary government regulatory approval or that any approved products will be commercially viable.
Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant
revenue from product sales. The Company operates in an environment of rapid technological change and substantial competition from other
pharmaceutical and biotechnology companies. In addition, the Company is dependent upon the services of its employees, consultants and
other third parties.

Concentration of Credit Risk

Financial instruments that potentially subject
the Company to concentration of credit risk consist primarily of cash and cash equivalents. The Company has not experienced any losses
in such accounts, and management believes that the Company is not exposed to significant credit risk due to the financial position of
the depository institutions in which those deposits are held. As of June 30, 2025 and 2024, all deposits are held in banks outside of
the United States.

Cash and Cash Equivalents

Cash and cash equivalents, which includes cash
and deposits held at call with financial institutions with original maturities of three months or less that are readily convertible to
known amounts of cash, are carried at cost, which approximates fair value.

Property, Plant and Equipment, Net

Recognition and Measurement

All property, plant and equipment is recognized
at historical cost less depreciation.

F-8

Depreciation

Depreciation is calculated using the straight-line
method to allocate their cost, net of their residual values, over their estimated useful lives or, in the case of leasehold improvements
and certain leased plant and equipment, the shorter lease term as follows:

●Machinery 10-15 years

●Vehicles 3-5 years

●Furniture, fittings and equipment 3-8 years

Furniture, fittings and equipment include assets
in the form of office fit outs. These assets and other