Company: IXHL
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110299
Chunk: 56

Company: Incannex Healthcare Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 56
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 Ended September 30, 2024 
  
    Net cash used in operating activities 
    $(9,163) 
    $(2,245)
  
    Net cash used in investing activities 
     (42) 
     - 
  
    Net cash provided by financing activities 
     67,177  
     - 
  
    Net (decrease)/increase in cash 
    $57,972  
    $(2,245)

Net cash flows from operating
activities

Cash used in operating activities increased by $6.9 million for the
three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase due to an increase in trade
and other payables.

Net cash flows from investing activities

Cash used in investing activities increased by
$42,000 for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was due to our
investment in Mind Medicine Australia.

Cash flows from financing activities

Cash provided in financing activities increased
by $67.2 million for the three months ended September 30, 2025 and the three months ended September 30, 2024. The increase was due to
share issuances under our ATM.

Critical Accounting Policies and
Estimates

Our management’s discussion and analysis
of our financial condition and results of operations is based on our unaudited interim condensed consolidated financial statements as
of September 30, 2025, which have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
The preparation of these unaudited interim condensed consolidated financial statements requires our management to make judgments and
estimates that affect the reported amounts of assets, liabilities, costs and expenses, and the disclosure of contingent assets and liabilities
during the reporting periods. We base our estimates on historical experience, known trends and events, and various other factors we believe
are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets
and liabilities that are not readily apparent from other sources. We evaluate our estimates and assumptions on an ongoing basis. Our
actual results may differ from these estimates under different assumptions or conditions.

While our significant accounting policies are
described in more detail in Note 2 to our consolidated financial statements described in the Company’s Annual Report on Form 10-K,
we believe the following accounting policies are those