Company: IXHL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043682
Chunk: 9

Company: Incannex Healthcare Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 payments that may become due and payable pursuant to any debentures to provide sufficient certainty that the
Company will continue as a going concern. Historically, the Company has financed its operations to date primarily through partnerships,
funds received from public offerings of Common Stock, a debt financing facility, as well as funding from governmental bodies. The Company
plan to address this condition through the sale of Common Stock in public offerings and/or private placements, debt financings, or through
other capital sources, including collaborations with other companies or other strategic transactions, but there is no assurance these
plans will be completed successfully or at all. Pursuant to the requirements of ASC 205-40, Presentation of Financial Statements - Going
Concern, and as a result of the financial condition and other factors described herein, there is substantial doubt about the Company’s
ability to continue as a going concern for a period of at least twelve months from the date of this Quarterly Report.

The Company’s independent auditor included
a going concern opinion in its audit report, which is part of the 2024 Annual Report, raising substantial doubt about the Company’s
ability to continue as a going concern. This doubt may adversely impact the Company’s ability to secure additional financing necessary
for its business operations and could materially affect its ability to enter into contractual relationships with third parties. Uncertainty
about the Company’s ability to continue as a going concern could materially and adversely affect its liquidity, financial condition,
and business prospects.

6

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

Principles of Consolidation

The accompanying unaudited condensed consolidated
financial statements include the accounts of the Company and its wholly-owned subsidiaries. Details of all controlled entities are set
out in Note 1. All intercompany balances and transactions have been eliminated on consolidation.

Use of Estimates

The preparation of financial statements in conformity
with US GAAP requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses
and the disclosure of contingent assets and liabilities in the Company’s unaudited condensed consolidated financial statements and
accompanying notes.

The most significant estimates and assumptions
in the Company’s unaudited condensed consolidated financial statements include the valuation of equity-based instruments issued,
accrued research and development expense, and the research and development tax credit. Estimates are periodically reviewed in light of
changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results
could differ