Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 8

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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of the Company, Incannex Australia, and subsidiaries following the completion of the Re-domiciliation; and (iii) the Company’s equity
structure for all periods presented, including adjusting the issued and outstanding shares of common stock to reflect the 100:1 exchange
ratio as if it had occurred on July 1, 2022.

5

Note 2 – Basis of Presentation and Summary of Significant
Accounting Policies (continued)

The Company’s unaudited condensed consolidated
financial statements contained in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally
accepted in the United States (“US GAAP”) and pursuant to the rules and regulations of the SEC. Prior to the Re-domiciliation,
Incannex Australia reported its consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”).
Following the Re-domiciliation, the Company transitioned to US GAAP and applied US GAAP retrospectively for all prior periods presented.

Reference is frequently made herein to the Financial
Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”). This is the source of authoritative
US GAAP recognized by the FASB to be applied to non-governmental entities.

Unaudited Interim Financial Information

In the opinion of the Company, the accompanying
unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary
for a fair statement of its financial position as of March 31, 2025, and its results of operations for the three and nine months ended
March 31, 2025, and 2024, and cash flows for the nine months ended March 31, 2025, and 2024. The Company has condensed or omitted certain
information and note disclosures normally included in financial statements prepared in accordance with GAAP pursuant to the applicable
required disclosures and regulations of the SEC. As such, these unaudited condensed consolidated financial statements should be read in
conjunction with the Company’s audited financial statements and accompanying notes included in the Company’s Annual Report
on Form 10-K for the year ended June 30, 2024.

Going Concern Basis

The Company believes there is substantial doubt
about its ability to obtain additional capital when and as needed to continue as a going concern as previously disclosed in the 2024 Annual
Report. The Company has not yet established an ongoing source of revenue sufficient to cover its operating and capital expenditure requirements
and to cover any potential