Company: IXHL
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110299
Chunk: 58

Company: Incannex Healthcare Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 58
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Benefit from R&D Tax Incentive

Benefit from R&D tax credit consists of the
R&D tax credit received in Australia, which is recorded within other income (expense), net. The Company recognizes grants once both
of the following conditions are met: (i) the Company is able to comply with the relevant conditions of the grant and (ii) the grant is
received. 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As a “smaller reporting company” (as
defined by Item 10 of Regulation S-K), we are permitted to omit information required by this item.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and
Procedures

We maintain disclosure
controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e)) under the Exchange Act that are designed to ensure
that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management,
including our Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable
assurance of achieving the desired control objectives. Our management, with the participation of our Chief Executive Officer and Chief
Financial Officer, has evaluated, as of the end of the period covered by this Quarterly Report, the effectiveness of the design and operation
of our disclosure controls and procedures. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded
that, as of September 30, 2025, our disclosure controls and procedures were not effective at the reasonable assurance level due to the
material weakness in internal control over financial reporting which existed as of September 30, 2025, relating to the documentation
of accounting policies and procedures, particularly relating to the correct application of complex accounting measures as previously
reported in our 2025 Annual Report.

A material weakness is
defined as a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable
possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely
basis. Management has concluded that we did not maintain effective disclosure controls and procedures due to the material weakness in
internal