Company: IXHL
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110299
Chunk: 22

Company: Incannex Healthcare Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 timing associated with the development
of that drug candidate. We may never succeed in obtaining regulatory approval for any drug candidate.

General and Administrative

General and administrative expenses consist primarily
of personnel-related expenses finance and accounting, human resources and other administrative functions, including salaries, stock-based
compensation and benefits for employees, legal fees, expenses relating to patent and corporate matters and professional fees paid for
accounting, auditing, consulting and tax services, as well as facilities-related costs not otherwise included in research and development
expenses and other costs such as insurance costs and travel expenses.

General and administrative expenses increased by
$2.2 million for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase was primarily
attributable to increases in executive and director compensation, additional consulting charges including recurring
monthly fees from advisory firms, and the recognition of amortized share-based payment expenses in the current quarter.

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 research
and development 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 research
and development activities. Subject to certain exclusions, the Australian Government tax incentives provide benefits for eligible research
and development 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.
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 research and development activities during the
year.

Benefit from R&D tax incentive decreased by
$0.4 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease in the
R&D tax incentive receivable for the three months ended September 30,