Company: IXHL
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013783
Chunk: 17

Company: Incannex Healthcare Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 at the Company’s discretion, allowing the Company to renew or extend the lease for an additional
three to five years. These optional renewal periods have not been included in the determination of the right-of-use assets or lease liabilities
related to these leases, as the Company has not determined it reasonably certain it will exercise the renewal options.

The following table summarizes the weighted-average
remaining lease term and discount rates for the Company’s operating leases:

     December 31,  2024   June 30, 2024   Lease term (years)   1.81    2.32                Discount rate   9.18%   9.18% 

The following table summarizes the lease costs
pertaining to the Company’s operating leases:

    December 31,  2024 $  
    June 30, 2024 $ 

    (in thousands) 
  
    Operating lease cost 
     96  
     172 

Cash paid for amounts included in the measurement
of operating lease liabilities during the three and six months ended December 31, 2024 and fiscal year June 30, 2024 was $96,000 and $0.2
million, respectively, and was included within net cash used in operating activities in the cash flows.

The following table summarizes the future minimum
lease payments due under operating leases as of December 31, 2024, (in thousands):

    Amount $ 
  
    Operating leases 
    (in thousands) 
  
    June 30, 2025 
     98 
  
    June 30, 2026 
     189 
  
    June 30, 2027 
     45 
  
    June 30, 2028 
     30 

    Total minimum lease payments 
     363 

    Less amount representing interest 
     34 

    Total operating lease liabilities 
     329 

As of December 31, 2024, the Company’s operating
lease has a weighted-average remaining lease term of 1.81 years and a discount rate of 9.18%.

Note 9 – Commitments and contingencies

The Company records a loss contingency when it
is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company also discloses material
contingencies when it believes a loss is not probable but reasonably possible. Accounting for