Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 19

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 8
Chunk 19
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 on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable
income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized.

For uncertain tax positions that meet a “more
likely than not” threshold, the Company recognizes the benefit of uncertain tax positions in the consolidated financial statements.
The Company’s practice is to recognize interest and penalties, if any, related to uncertain tax positions in income tax expense
in the consolidated statements of operations.

Net loss per share attributable to holders of common stock

The Company has reported losses since inception
and has computed basic net loss per share by dividing net loss by the weighted-average number of shares of common stock outstanding for
the period, without consideration for potentially dilutive securities. The Company computes diluted net loss per share after giving consideration
to all potentially dilutive share issuances, including unvested restricted shares and outstanding options. Because the Company has reported
net losses since inception, these potential issuances of common stock have been anti-dilutive and basic and diluted loss per share were
the same for all periods presented.

Comprehensive Loss

Comprehensive loss includes net loss as well as
other changes in stockholders’ equity that result from transactions and economic events other than those with stockholders. For
the fiscal years ended June 30, 2025 and 2024, the only component of accumulated other comprehensive loss is foreign currency translation
adjustment.

F-14

Note 3 - Prepaid expenses and other current assets

    June 30, 2025  
    June 30, 2024 

    (in thousands) 
  
    Prepayments1 
     297  
     329 
  
    GST recoverable 
     494  
     178 
  
    Total other assets 
     791  
     507 

1Prepayments consist of prepaid clinical trial insurances,
prepaid R&D expenditure relating to PSX-001 and IHL-675A clinical trials and scientific, marketing, and adverting subscription services.

Note 4 - R&D tax incentive receivable

    June 30, 2025  
    June 30, 2024 

    (in thousands) 
  
    R&D tax incentive receivable 
     4,132  
     9,837 

R&D tax incentive is recorded within the Consolidated
Statements of Operations and Comprehensive Loss and amounted to $