Company: IXHL
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110299
Chunk: 73

Company: Incannex Healthcare Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 73
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 not have, during the periods presented,
and we do not currently have, any off-balance sheet arrangements, as defined in the rules and regulations of the SEC.

20

Cash Flows 

Comparison of cash flows for the three months ended September 30, 2025
and three months ended September 30, 2024

The following table summarizes our
cash flows for the periods presented (in thousands):

    For the  Three Months  Ended September 30, 2025  
    For the  Three Months  Ended September 30, 2024 
  
    Net cash used in operating activities 
    $(9,163) 
    $(2,245)
  
    Net cash used in investing activities 
     (42) 
     - 
  
    Net cash provided by financing activities 
     67,177  
     - 
  
    Net (decrease)/increase in cash 
    $57,972  
    $(2,245)

Net cash flows from operating
activities

Cash used in operating activities increased by $6.9 million for the
three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase due to an increase in trade
and other payables.

Net cash flows from investing activities

Cash used in investing activities increased by
$42,000 for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was due to our
investment in Mind Medicine Australia.

Cash flows from financing activities

Cash provided in financing activities increased
by $67.2 million for the three months ended September 30, 2025 and the three months ended September 30, 2024. The increase was due to
share issuances under our ATM.

Critical Accounting Policies and
Estimates

Our management’s discussion and analysis
of our financial condition and results of operations is based on our unaudited interim condensed consolidated financial statements as
of September 30, 2025, which have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
The preparation of these unaudited interim condensed consolidated financial statements requires our management to make judgments and
estimates that affect the reported amounts of assets, liabilities, costs and expenses, and the disclosure of contingent assets and liabilities
during the reporting periods. We base our estimates on historical experience, known trends and