Incannex(IXHL) - 2026 Q1 - Quarterly Report

Revenue Performance - Revenue from customers for the three months ended September 30, 2025, was $0, a decrease of 100% compared to $74,000 in the same period in 2024[92]. - The company has not generated revenue and does not expect to do so until drug candidates are approved[93]. Expenses - Research and development expenses decreased by $1.8 million to $1.1 million for the three months ended September 30, 2025, a reduction of 61% compared to $2.9 million in 2024[92][96]. - General and administrative expenses increased by $2.2 million to $5.7 million for the three months ended September 30, 2025, a rise of 65% compared to $3.4 million in 2024[92][102]. - The company anticipates substantial increases in general and administrative expenses as it expands operations and prepares for potential commercialization of drug candidates[102]. - Stock-based compensation is recognized using a fair value method, with expenses recorded over the vesting period[121]. - Research and development costs are expensed as incurred, including salaries, benefits, and clinical trial costs[122]. - Nonrefundable advance payments for future research and development activities are deferred as prepaid expenses until services are performed[123]. - Accrued liabilities for estimated research and development costs are based on services provided but not yet invoiced[124]. - The company has not experienced material differences between accrued costs and actual costs incurred[125]. Financial Position - Total comprehensive loss for the three months ended September 30, 2025, was $6.2 million, compared to a loss of $5.1 million in 2024, representing an increase of 22%[92][110]. - Cash and cash equivalents as of September 30, 2025, were $73.3 million, an increase of $58.3 million from $15.0 million as of June 30, 2025[112]. - Net cash used in operating activities for the three months ended September 30, 2025, was $9.2 million, an increase of $7.0 million compared to $2.2 million in 2024[112][116]. - Cash provided by financing activities increased by $67.2 million for the three months ended September 30, 2025, due to share issuances under the ATM program[115][118]. - The accumulated deficit as of September 30, 2025, was $164.0 million[110]. Tax Credits and Market Risk - Benefit from R&D tax credit in Australia is recorded within other income, recognized once compliance conditions are met[126]. - As a smaller reporting company, the company omits certain market risk disclosures[127].