Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 344

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 344
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, net of tax 
     208  
     (77) 
     285  
     (370)
  
    Comprehensive loss 
    $(46,677) 
    $(18,536) 
    $(28,141) 
     152 

Revenue from Customers

During the fiscal year
ended June 30, 2025, we generated revenue from clinic patients for rehabilitation services. This figure reflects the consideration to
which the Company expects to be entitled in exchange for those services. Revenue increased approximately 617% when compared to revenues
generated during the fiscal year ended June 2024 primarily as a result of our expansion of these services. We have not generated any revenue
from the sale of products. We do not expect to generate material revenues unless and until our drug candidates are approved.

Operating Expenses

Our operating expenses consist of (i) R&D
expenses, (ii) acquisition of in-process research and development (“IPR&D”) expense and (iii) general and administrative
expenses.

R&D Expenses

R&D expenses consist
primarily of external and internal costs incurred in performing clinical and preclinical development activities.

85

Our R&D expenses
include:

●external costs incurred under agreements with CROs, contract
                                            manufacturers, consultants and other third parties to conduct and support our clinical trials
                                            and preclinical studies; and

●internal costs, including R&D personnel-related expenses
                                            such as salaries, and benefits, as well as allocated facilities costs and dues and subscriptions.

We expense R&D costs
as incurred.

R&D expenses decreased by $2.1 million for
the fiscal year ended June 30, 2025 compared to the fiscal year ended June 30, 2024. The decrease was primarily due to a pause in our
development activities that occurred during the fiscal year ended June 30, 2025 for resource conservation reasons. We have since resumed
development activities for all of our lead drug candidates.

Although R&D activities
are central to our business model, the successful development of our drug candidates is highly uncertain. There are numerous factors
associated with the successful development of our drug candidates, including future trial design and various regulatory requirements,
many of which cannot be determined with accuracy at this time based on our stage of development. In addition, future regulatory factors
beyond our control may impact our clinical development programs. Drug candidates in later stages of clinical development generally have
higher development costs than those in earlier stages of clinical development, primarily due