Incannex Healthcare Reports $3.97 Million Net Loss for Quarter, Decreases Operating Expenses

Incannex Healthcare Inc. reported its financial results for the three and nine months ended March 31, 2025, revealing a net loss of $3.97 million for the quarter and $15.28 million for the nine-month period. This represents a decrease in losses compared to the same periods in the previous year, where the company reported losses of $6.03 million and $12.00 million, respectively. The company did not generate any revenue from customers during the latest quarter, maintaining a total revenue of $86,000 for the nine months ended March 31, 2024, primarily from patient services at Clarion Clinics.

The company’s operating expenses for the three months ended March 31, 2025, were $5.00 million, down from $7.42 million in the same quarter of the previous year, marking a 33% reduction. For the nine-month period, operating expenses decreased by 19% to $16.35 million from $20.30 million. The decline in expenses was attributed to reduced research and development costs, which fell by 17% for the quarter and 21% for the nine months, largely due to the completion of clinical trials and a strategic shift in resource allocation towards U.S. research efforts.

In terms of strategic developments, Incannex Healthcare completed a re-domiciliation from Australia to the United States in November 2023, acquiring Incannex Healthcare Limited. This move has positioned the company to better access U.S. capital markets. Additionally, the company entered into an equity line of credit Purchase Agreement with Arena Business Solutions Global SPC II, allowing for the potential purchase of up to $50 million in common stock. The company also secured a facility agreement with FC Credit for a term loan of up to $4.7 million, which is expected to support ongoing research and development activities.

As of March 31, 2025, Incannex Healthcare had cash and cash equivalents of $6.71 million, an increase from $5.86 million as of June 30, 2024. The company reported a current asset surplus over current liabilities of $8.2 million, although this was a decrease from $10.6 million in the previous fiscal year. The company continues to face substantial doubt regarding its ability to continue as a going concern, primarily due to ongoing losses and the uncertainty of generating sufficient revenue to meet operational needs.

Looking ahead, Incannex Healthcare anticipates that its research and development expenses will increase as it advances its drug candidates through clinical trials. The company is focused on its lead candidates, including IHL-42X for obstructive sleep apnea and PSX-001 for generalized anxiety disorder, and is exploring expedited regulatory pathways in the U.S. However, the company acknowledges the inherent risks and uncertainties associated with drug development and regulatory approval processes, which could significantly impact future financial performance.