Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 38

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 incurred net losses since inception and
expect to incur substantial and increasing losses in the future as we expand our R&D activities in an effort to move our drug candidates
into later stages of development. Historically, we have funded our operations primarily 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 $16.2
million and $12.4 million for the nine months ended March 31, 2025 and nine months ended March 31, 2024, respectively. We incurred net
losses of $15.3 million and $12.0 million for the nine months ended March 31, 2025 and nine months ended March 31, 2024, respectively.
As of March 31, 2025, we had accumulated deficit of $126.0 million.

As of March 31, 2025, we had cash and cash equivalents
of $6.7 million. We expect our negative cash flows from operating activities to continue and thus have determined that the losses and
negative cash flows from operations and uncertainty in generating sufficient cash to meet our obligations and sustain our operations raise
substantial doubt about our ability to continue as a going concern for at least one year from the issuance date of the financial statements
included in this Quarterly Report. We do not currently have an update to our previously disclosed cash runway estimate. We have based
our cash runway estimates on assumptions that may prove to be incorrect, and we could use our capital resources sooner than we currently
expect.

For the nine months ended March 31, 2025, we experienced
net cash used in operating activities of $11.0 million, a decrease of $1.2 million compared to the nine months ended March 31, 2024. As
of March 31, 2025, we had cash and cash equivalents of $6.7 million, an increase of $0.8 million compared to our cash and cash equivalents
as of June 30, 2024 of $5.9 million. As of March 31, 2025, our current assets exceed our current liabilities by $8.2 million, a $2.4 million
decrease compared to the difference between our current assets and current liabilities as of June 30, 2024 of $10.6 million.  

Going Concern

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