Company: IXHL
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013783
Chunk: 37

Company: Incannex Healthcare Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 professional fees paid for
accounting, auditing, consulting and tax services, as well as facilities-related costs not otherwise included in research and development
expenses and other costs such as insurance costs and travel expenses.

General and administrative expenses decreased by
$1.7 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023. The decrease was primarily
attributable to a decrease in employee benefits, resulting from a reduction in the amount of restricted stock issued to our directors
and officers.

General and administrative expenses decreased by
$0.3 million for the six months ended December 31, 2024, compared to the six months ended December 31, 2023. The decrease was primarily
attributable to a decrease in employee benefits, resulting from a reduction in the amount of restricted stock issued to our directors
and officers.

We anticipate our general and administrative expenses
will increase substantially in the future as we expand our operations, including increasing our headcount to support our continued research
and development activities and preparing for potential commercialization of our drug candidates. We also anticipate we will incur increased
accounting, audit, legal, regulatory, compliance, director and officer insurance, and investor and public relations expenses associated
with operating as a U.S. public company.

20

Other Income (Expense)

Benefit from R&D tax credit 

We receive tax incentives
from the Australian government for R&D activities. Subject to certain exclusions, the Australian Government tax incentives provide
benefits for eligible R&D activities.  Entities are entitled to either (i) a 48.5% refundable tax offset for eligible companies
with an aggregated turnover of less than A$20 million per annum, or (ii) a non-refundable 38.5% tax offset for all other eligible
companies. If our aggregated turnover is less than A$20 million and is not controlled by one or more income tax exempt entities,
we anticipate being entitled to a claim of 48.5% refundable tax offset for costs relating to eligible R&D activities during the year.

Benefit from R&D tax incentive decreased by
$2.0 million for the three months ended December 31, 2024 compared to the three months ended December 31, 2023. The decrease was due to
a lower estimate of our R&D tax incentive receivable for the three months ended December 31, 2024.

Benefit from R