Company: IXHL
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110299
Chunk: 51

Company: Incannex Healthcare Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 51
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     811  
     (422) 
     (52)%
  
    Foreign exchange gains (losses) 
     (13) 
     (5) 
     (8) 
     160%
  
    Interest income 
     5  
     28  
     (23) 
     (82)%
  
    Share of earnings(loss) of joint venture 
     6  
     -  
     6  
     100%
  
    Total other income / (expenses), net 
     387  
     834  
     (447) 
     (54)%
  
    Currency translation adjustment, net of tax 
     223  
     339  
     (116) 
     (34)%
  
    Comprehensive loss 
    $(6,184) 
    $(5,081) 
    $(1,103) 
     22%

17

Revenue from Customers

We have not generated revenue for the three months end September 30, 2025 and we do not expect to generate material revenues unless and until
our drug candidates are approved.

Operating Expenses 

Research and development 

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

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 research and development costs as incurred.

Research and development expenses decreased by
$1.8 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease was primarily
due to the completion of the IHL-42X safety and pharmacokinetics clinical trial and the pausing of patient recruitment in the Australian
Phase 2 clinical trial for IHL-675A in rheumatoid arthritis. This decision was made to reallocate resources for the IHL675A program and
focus on expanding research efforts in the United States, where an expedited regulatory pathway may be available. We have since resumed
development activities for this candidate. The primary R&D expense for the period was the Phase 2/3 RePO