Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 63

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 63
---
     (100)%
  
    Other expenses 
     (2) 
     -  
     (2) 
     (100)% 
     (1,095) 
     -  
     (1,095) 
     (100)%
  
    Total other income / (expenses), net 
     1,035  
     1,384  
     (349) 
     (25)% 
     979  
     8,229  
     (7,250) 
     (88)%
  
    Currency translation adjustment, net of tax 
     (88) 
     (820) 
     732  
     (89)% 
     (163) 
     (403) 
     240  
     (60)%
  
    Comprehensive loss 
    $(4,056) 
    $(6,851) 
    $2,795  
     (41)% 
    $(15,445) 
    $(12,401) 
    $(3,044) 
     25%

23

Revenue from Customers

We have generated revenue from Clarion Clinics
for patient services for the three and nine months end March 31, 2025. However, 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
$0.5 million for the three months ended March 31, 2025 compared to the three months ended March 31, 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