Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 37

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 37
---
tax offset for all other eligible companies. Our aggregated turnover is less than A$20 million and not be controlled by one or more
income tax exempt entities, we anticipate being entitled to a claim of 48.5% refundable tax offset for costs relating to eligible research
and development activities during the year.

Benefit from R&D tax incentive decreased by
$0.9 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was due to a lower
estimate of our R&D tax incentive receivable for the three months ended March 31, 2025.

Benefit from R&D tax incentive decreased by
$6.0 million for the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024. The decrease was due to a lower
estimate of our R&D tax incentive receivable for the nine months ended March 31, 2025.

Foreign exchange losses and Interest Income

Foreign exchange losses decreased by $0.1 million
for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, due to favourable currency exchange rates.
Interest income decreased over the same period, reflecting lower interest received from cash deposits.

Foreign exchange losses increased by $0.3 million
for the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024, due to unfavorable currency exchange rates.
Interest income decreased over the same period, reflecting lower interest received from cash deposits.

Currency translation adjustment, net of tax

Currency translation adjustment, net of tax, decreased
by $0.7 million for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The decrease was due to
the depreciation of the Australian dollar against the U.S. dollar. We maintain our consolidated financial statements in Australian dollars,
our functional currency, while our financial statements are translated into U.S. dollars for reporting purposes.

Currency translation adjustment, net of tax decreased
by $0.2 million for the nine months ended March 31, 2025, compared to the nine months ended March 31, 2024. The decrease was due to the
depreciation of the Australian dollar against the U.S. dollar.

26

Liquidity and Capital Resources

Sources of Liquidity

We have