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Incannex Healthcare Inc. (IXHL+0.32%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a net loss of $5.9 million compared to $5.2 million in the same quarter the previous year. The company attributes the loss to ongoing research and development expenses and general administrative costs.
Research and development expenses for the quarter were $1.4 million, down from $2.6 million in the previous year. The decrease is primarily due to the completion of the IHL-42X safety and pharmacokinetics clinical trial and the pausing of patient recruitment in the Australian Phase 2 clinical trial for IHL-675A.
General and administrative expenses decreased to $3.6 million from $5.3 million, attributed to a reduction in employee benefits and restricted stock issuance.
The company reported revenue of $12,000 from customer services at Clarion Clinics, a new revenue stream for the quarter.
Incannex announced it had entered into an equity line of credit purchase agreement with Arena Business Solutions Global SPC II, Ltd, allowing the company to sell up to $50 million of its common stock.
The company also entered into a securities purchase agreement with Arena Investors, LP for the issuance of convertible debentures up to $10 million, with the first tranche completed for $3.3 million.
The filing highlights a decrease in cash and cash equivalents to $2.1 million from $5.9 million at the end of June 2024. The company plans to address its cash needs through potential public offerings, debt financings, or strategic transactions.
Incannex's management identified a material weakness in internal controls over financial reporting, specifically in the documentation of accounting policies and procedures. The company is undertaking remediation efforts to address this issue.
The filing also notes that Incannex's stock is currently listed on the Nasdaq Global Market, and the company is monitoring its compliance with Nasdaq's continued listing requirements.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Incannex Healthcare Inc. quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.