Company: IXHL
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001213900-25-092837
Chunk: 21

Company: Incannex Healthcare Inc.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 8
Chunk 21
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. The carrying amounts are a reasonable approximation of fair value.

Note 7 - Leases

As of June 30, 2025, the Company has three lease
agreements for its corporate head office in Sydney and two sites in Melbourne (an office and the Clarion Clinic). The leases have original
terms of approximately four, five and three years, respectively, require monthly payments that may be subject to annual increases, and
include certain renewal options. The Company did not include the renewal periods in measuring the related right-of-use assets and lease
liabilities because it was not reasonably certain that the options would be exercised.

The following table summarizes the weighted-average
remaining lease term and discount rates for the Company’s operating leases:

     June 30, 2025   June 30, 2024   Lease term (years)   1.32    2.32                Discount rate   9.18%   9.18% 

The following table summarizes the lease costs
pertaining to the Company’s operating leases:

    June 30, 2025  
    June 30, 2024 
  
    Operating lease cost 
     203  
     172 

Cash paid for amounts included in the measurement
of operating lease liabilities during the fiscal years ended June 30, 2025 and 2024 was $203,000 and $172,000, respectively, and was included
within net cash used in operating activities in the cash flows.

The following table summarizes the future minimum
lease payments due under operating leases as of June 30, 2025, (in thousands):

    Operating leases 
    Amount $ 
(in thousands) 
  
    June 30, 2026 
     199 
  
    June 30, 2027 
     48 
  
    June 30, 2028 
     32 

    Total minimum lease payments 
     279 

    Less amount representing interest 
     21 

    Total operating lease liabilities 
     258 

Note 8 - Commitments and contingencies

The Company records a loss contingency when it
is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company also discloses material
contingencies when it believes a loss is not probable but reasonably possible. Accounting for contingencies requires us to use judgment
related to both the likelihood of a