Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 592

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 3
Chunk 592
---
 (from $8.9 million to $2.6 million) in equity compensation and benefits for employees and directors, primarily
driven by less amortization expense incurred as the equity compensation was issued in May 2025 (compared to the prior period the equity
compensation was issued in December 2024). This decrease was partially offset by an increase of $1.4 million (from $2.8 million to $4.2
million) in salaries, and other employee benefits, which resulted from the appointment of Chief Medical Officer and additional middle
management positions during the period. Additionally, compliance, legal and regulatory expenses increased by $0.8 million (from $3.1 million
to $3.9 million) primarily due to enhanced reporting obligations.

We anticipate our general
and administrative expenses will increase substantially in the future as we expand our operations, including increasing our headcount
to support our continued R&D activities and preparing for potential commercialization of our drug candidates. We also anticipate
we will incur increased accounting, audit, legal, regulatory, compliance, director and officer insurance, and investor and public relations
expenses associated with operating as a U.S. public company.

Other Income (Expense)

Benefit from R&D Tax Credit

We receive tax incentives
from the Australian government for R&D activities. Subject to certain exclusions, the Australian Government tax incentives provide
benefits for eligible R&D activities. Entities are entitled to either (i) a 48.5% refundable tax offset for eligible companies with
an aggregated turnover of less than A$20 million per annum or (ii) a non-refundable 38.5% tax offset for all other eligible companies.
As our aggregated turnover is less than A$20 million and we are not controlled by one or more income tax exempt entities, we anticipate
being entitled to a claim of 48.5% refundable tax offset for costs relating to eligible R&D activities during the year.

Benefit from R&D tax credit decreased by $9.7
million (from $11.4 million to $1.8 million) for the fiscal year ended June 30, 2025 compared to the fiscal year ended June 30, 2024.
The decrease primarily due to the multiple years of tax incentives being granted and successful lodgement of overseas findings on the
Company’s lead assets, which we revised the estimates for the R&D tax incentive receivable, primarily based on historical experience
of claims in the fiscal year