Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 476

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1C
Chunk 476
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,283,465 shares
of common stock for aggregate gross proceeds of $40.2 million and net proceeds of approximately $38.7 million after deducting $1.5 million
in commissions payable to the sales agent. As of September 29, 2025, our unrestricted cash and cash equivalents were $73.4 million. Based
on our unrestricted cash and cash equivalents as of September 29, 2025, we anticipate that we will be able to fund our planned operating
expenses and capital expenditure requirements for at least twelve months from the date of the financial statements included in this Annual
Report. We have based these estimates on assumptions that may prove to be wrong, and we could use our capital resources sooner than we
currently expect.

Off-Balance Sheet Arrangements

We did 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.

Cash Flows

Comparison of Cash Flows for the Fiscal Year ended June 30, 2025,
with June 30, 2024

The following table summarizes our cash flows
for the periods presented:

    Year Ended June 30, 

    2025  
    2024 
  
    Net cash used in operating activities 
    $(12,513) 
    $(15,845)
  
    Net cash provided by/(used in) investing activities 
     (8) 
     (277)
  
    Net cash provided by financing activities 
     21,396  
     - 
  
    Net (decrease)/increase in cash, cash equivalents and restricted cash 
    $8,875  
    $(16,122)

Net cash flows from operating activities

Net cash used in operating activities decreased
by $3.3 million in the fiscal year ended June 30, 2025 compared to the fiscal year ended June 30, 2024. The decrease was primarily driven
by a $6.3 million reduction in share-based compensation expense (from $8.9 million to $2.6 million) and a decrease in cash paid related
to trade and other payables of $1.6 million (from $3.0 million to $1.4 million), partially offset by an increase in R&D tax incentive
received of $15.4 million (from outflow of $9.8 million to inflow of $5.6 million).

Net cash flows from