Company: IXHL
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-013783
Chunk: 40

Company: Incannex Healthcare Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 cash used in operating activities 
    $(7,872) 
    $(7,852)
  
    Net cash used in investing activities 
     (8) 
     (280)
  
    Net cash provided by financing activities 
     4,050  
     - 
  
    Net (decrease)/increase in cash 
    $(3,830) 
    $(8,132)

Net cash flows from operating activities

Net cash used in operating activities increased an insignificant amount
for the six months ended December 31, 2024, compared to the six months ended December 31, 2023. The increase was due to a decrease in
in R&D tax incentive received. 

Net cash flows from investing activities

Net cash used in investing activities decreased
by $0.3 million for the six months ended December 31, 2024 compared to the six months ended December 31, 2023. The decrease was due to
reduced spending on property, plant and equipment.

Net cash flows from financing activities

Net cash provided by financing activities increased by $4.1 million
for the six months ended December 31, 2024, compared to the three months ended December 31, 2023. The increase was due to the issuance
of the FC Credit Facility Agreement and the issuance of the First Tranche Debenture. 

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 December 31, 2024, 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 events, and various other factors we believe
are reasonable under the circumstances. The results of these form the basis for making judgments about the carrying values of assets and
liabilities that are not readily apparent from other sources. We evaluate our estimates and assumptions on an ongoing basis. Our actual
results may differ from these estimates under different assumptions or conditions.

While our significant accounting policies are described
in more detail in Note 2 to our consolidated financial statements described in the 2024 Annual Report