Company: IXHL
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013783
Chunk: 78

Company: Incannex Healthcare Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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:

    December 31,  2024 $  
    June 30, 2024 $ 

    (in thousands) 
  
    Short-term debt 

    FC Credit – 14.5% Facility agreement due 2025 
     1,383  
                - 
  
    Long-term debt 

    Arena LP – 10% Original discount secured convertible debenture due April 14, 2026 
     2,385  
     - 

FC Credit – 14.5% Facility agreement
due 2025

On October 9, 2024, the Company entered into a
Facility Agreement with FC Credit, under which, the Company received approximately A$6.9 million (USD$4.3 million) on October 10, 2024,
as the initial drawdown amount.

This facility provides the Company with immediate
access to funds based on R&D expenses incurred during the 2023 and 2024 financial years, aligning with the end of the Australian financial
year. The Research and Development Tax Incentive (“RDTI”) program is a key program under the Australian government's innovation
framework, designed to encourage companies to undertake R&D activities that benefit Australia. It offers a tax rebate, currently at
48.5%, for eligible R&D expenses, enabling companies to recover nearly half of their R&D spending.

Arena LP – 10% Original discount
secured convertible debenture due April 14, 2026

For initial recognition of the long-term debt,
refer to Note 12. For more information on the September 2024 Debenture, refer to Note 2. The value allocated to the debt at initial recognition
is classified as a liability and accreted or amortized to par value.

14

Note 14 – Income Tax 

For the three and six months ended December 31,
2024, and December 31, 2023, respectively, the Company did not recognize a provision or benefit for income taxes due to incurring net
losses. In addition, the net deferred tax assets arising from net operating losses were fully offset by a valuation allowance as the Company
believes it is not more likely than not that the benefit will be realized.

Note 15 – Loss per share 

All share and earnings per share amounts presented
below reflect the impact of the Re-domiciliation as if it had taken effect on July 1,