Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 17

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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Depreciation expense is recorded within general
and administrative in the unaudited condensed consolidated statements of operations and comprehensive loss and amounted to $207 and $25
for the nine months ended March 31, 2025 and 2024, respectively.

11

Note 7 – Trade and other payables, accrued expenses and other
current liabilities

    March 31,  2025 $  
    June 30, 2024 $ 

    (in thousands) 
  
    Current liabilities 

    Trade payables 
     1,039  
     527 
  
    Contract liabilities 
     28  
     85 
  
    Total trade and other payables 
     1,067  
     612 

    Accrued expenses 
     4,358  
     4,512 
  
    Employee leave entitlements 
     360  
     333 
  
    Total accrued expenses and other current liabilities 
     4,718  
     4,845 
  
    Total Trade and other payables, accrued expenses and other current liabilities 
     5,785  
     5,457 

Trade and other payables are unsecured, non-interest
bearing and are normally settled within 30 days. The carrying amounts are a reasonable approximation of fair value.

Note 8 – Leases

During fiscal year 2023, the Company entered into
three new lease agreements for its corporate head office in Sydney, Melbourne office and Clarion Clinic site. The leases have four, five
and three-year terms respectively. These leases require monthly lease payments that may be subject to annual increases throughout the
lease term. Certain of these leases also include renewal options at the election of the Company to renew or extend the lease for an additional
three to five years. These optional periods have not been considered in the determination of the right-of-use assets or lease liabilities
associated with these leases as the Company did not consider it reasonably certain it would exercise the options.

The following table summarizes the weighted-average
remaining lease term and discount rates for the Company’s operating leases:

     March 31, 2025   June 30, 2024   Lease term (years)   1.57    2.32                Discount rate   9.18%   9.18% 

The following table summarizes the lease costs
pert