Company: IXHL
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013783
Chunk: 120

Company: Incannex Healthcare Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 2
Chunk 120
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 of September 2024 Debentures and September 2024 Warrants.

On November 6, 2024, pursuant to our agreements in connection with
the First Tranche Debenture, the Company filed a resale Registration Statement on Form S-1/A with the SEC, registering for resale up to
61,389,758 shares of Common Stock, including up to 10,101,009 shares of Common Stock issuable upon conversion of the First Tranche Debenture
and up to 453,749 shares of Common Stock issuable upon the exercise of the First Tranche Warrant. This registration statement was declared
effective on December 6, 2024. 

Facility Agreement

On October 9, 2024, we entered into a Facility
Agreement (the “Facility Agreement”) with FC Credit Pty Ltd (“FC Credit”), under which FC Credit will provide
a term loan facility for up to $4.7 million (the “Loan Facility”). On October 10, 2024, we received approximately $4.6 million
in an initial drawdown, after deducting certain fees payable by us under the Facility Agreement. The Facility Agreement has a term of
12 months from the date of the initial drawdown (the “Final Repayment Date”). Interest will accrue at the rate of 14.5% per
annum, and is payable on the last date of each calendar month and on the Final Repayment Date.

Subject to its terms, this facility provides us with immediate access
to funds based on research and development expenses incurred during the 2023 and 2024 financial years, aligning with the end of the Australian
financial year, when the Research and Development Tax Incentive program (“RDIT”) rebates are paid. The RDIT is a key initiative
under the Australian government's innovation framework, designed to encourage companies to undertake research and development activities
that benefit Australia. It offers a tax rebate, currently at 48.5%, for eligible research and development expenses, allowing companies
to recoup almost half of their research and development spending. 

Results of Operations

Comparison of the Three and
Six Months Ended December 31, 2024 and 2023

The following tables summarize our results of
operations for the periods presented (in thousands):

    For the Three Months Ended  December 31  
    $  
    %  
    For the  Six Months Ended  December 31