Incannex Healthcare Reports $19.3 Million Net Loss for Fiscal Year Ended June 30, 2026

Incannex Healthcare Inc. reported a net loss of $19.3 million for the fiscal year ended June 30, 2026, a decrease from a net loss of $46.7 million in the prior fiscal year. This reduction in net loss was primarily attributed to a significant decrease in financing-related losses, including changes in the fair value of warrants and convertible debt, as well as a loss on extinguishment of debt, which were less pronounced in the current fiscal year. The company's revenue from customers was nil for the fiscal year ended June 30, 2026, compared to $86,000 in the prior fiscal year, as Incannex has not yet generated revenue from product sales and does not anticipate doing so until its drug candidates receive regulatory approval.

Total operating expenses for the fiscal year ended June 30, 2026, were $23.0 million, a slight decrease of 4% from $23.9 million in the prior fiscal year. Research and development (R&D) expenses decreased by $5.5 million to $5.2 million, primarily due to the completion of the RePOSA Study and the commencement of the DReAMzz Study. Conversely, general and administrative expenses increased by $4.7 million to $17.8 million, largely driven by a $5.0 million increase in stock-based compensation expense, reflecting increased amortization of equity awards. The company also benefited from an increase in R&D tax incentives, which rose by $2.9 million to $4.7 million, due to expanded eligibility for certain R&D expenditures.

In terms of strategic and operational developments, Incannex is advancing its lead drug candidate, IHL-42X, for obstructive sleep apnea (OSA). The company completed the Phase 2 portion of its RePOSA Phase 2/3 clinical trial and received Fast Track designation from the FDA for IHL-42X. A new Phase 2 dose confirmation study, the DReAMzz Study, commenced in May 2026 and is currently enrolling participants, with results expected to inform the design of a planned Phase 3 clinical trial. For its other lead candidate, PSX-001, for generalized anxiety disorder (GAD), Incannex reported positive Phase 2 results from the PsiGAD1 trial and has a cleared Investigational New Drug (IND) application with the FDA, while assessing options for the next development steps. The company also continues to assess development strategies for IHL-675A for inflammatory conditions, though resource allocation is focused on its lead assets.

Looking ahead, Incannex anticipates substantial increases in R&D expenses as its drug candidates progress through clinical development. The company expects to require significant additional funding to continue development and commercialization efforts. Incannex believes its current cash balance, along with anticipated cash flows and available financing arrangements, provides sufficient resources for at least one year from the financial statement issuance date. The company has identified a material weakness in its internal controls over financial reporting and is undertaking remediation efforts, including hiring qualified personnel and developing enhanced policies and procedures.