Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 475

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1C
Chunk 475
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2025. As of June 30, 2025, we had accumulated comprehensive losses
of $157.6 million.

As of June 30, 2025, we had cash and cash equivalents
of $15.0 million. Although we expect our negative cash flows from operating activities to continue, we believe our current cash balances,
together with anticipated cash flows and available financing arrangements, provide sufficient resources to meet our obligations and sustain
operations for at least one year from the issuance date of the financial statements in this Annual Report.

For the fiscal year ended June 30, 2025, we
experienced net cash outflows from operating activities of $12.5 million, a decrease of $3.3 million compared to the fiscal year ended
June 30, 2024. As of June 30, 2025, we had cash and cash equivalents of $15.0 million, an increase of $9.2 million compared to our cash
and cash equivalents as of June 30, 2024 of $5.9 million. As of June 30, 2025, our current assets exceed our current liabilities by $13.0
million, a $2.4 million increase compared to the difference between our current assets and current liabilities as of June 30, 2024 of
$10.6 million.

Going Concern

As of the date of this Annual Report, we believe
there is no longer substantial doubt about our ability to continue as a going concern. Although we have not yet established an ongoing
source of revenue sufficient to cover all operating and capital expenditure requirements, including any potential payments pursuant to
debentures, recent improvements in our financial position provide reasonable assurance that we will continue as a going concern for at
least twelve months from the date of the financial statements.

88

Historically, we have financed our operations
to date primarily through partnerships, funds received from public offerings of common stock, a debt financing facility, as well as funding
from governmental bodies. We continue to plan for additional capital through the sale of common stock in public offerings and/or private
placements, debt financings, or through other capital sources, including pursuant to the ATM, collaborations with other companies or
other strategic transactions. While there can be no assurance that these plans will be completed successfully or at all, our current
financial position and resources mitigate prior concerns related to going concern uncertainties.

During the three months ended June 30, 2025, we sold 163