0001213900-23-014896 | 6-K | XBRL Viewer

Financial Instruments	6 Months Ended
Dec. 31, 2022
Financial Instruments [Abstract]
FINANCIAL INSTRUMENTS	NOTE 11: FINANCIAL INSTRUMENTS The Company has a number of financial instruments which are not measured at fair value in the statement of financial position. The Directors consider that the carrying amounts of current receivables, current payables and current borrowings are considered to be a reasonable approximation of their fair values.

Financial Instruments

6 Months Ended

Dec. 31, 2022

NOTE 11: FINANCIAL INSTRUMENTS

The Company has a number of financial instruments which are not measured at fair value in the statement of financial position.

The Directors consider that the carrying amounts of current receivables, current payables and current borrowings are considered to be a reasonable approximation of their fair values.

Leases (Tables)

6 Months Ended

Dec. 31, 2022

Leases [Abstract]

Schedule of financial position

	31 December 2022			30 June 2022
	$			$
Amounts recognised in statement of financial position
Right-of-use assets
Right-of-use assets ⁽¹⁾		255,074			-
Depreciation		(31,234	)		-
Net carrying amount		223,840			-

1.	During the half year ended 31 December 2022, the Company entered into a new lease agreement for its corporate head office. The lease has a four-year term.

Schedule of lease liabilities

	31 December 2022		30 June 2022
	$		$
Lease liabilities
Current		50,468		-
Non-current		181,519		-
Total lease liabilities		231,987		-

Schedule of comprehensive income

	31 December 2022		30 June 2022
	$		$
Amounts recognized in statement of comprehensive income
Depreciation charge of right-of-use assets		31,234		-
Net finance expenses		10,976		-
		42,210		-

Contingencies	6 Months Ended
Dec. 31, 2022
Disclosure Of Commitments And Contingent Liabilities Text Block Abstract
CONTINGENCIES	NOTE 10: CONTINGENCIES There has been no change in contingent liabilities since the last annual reporting date.

Contingencies

6 Months Ended

Dec. 31, 2022

Disclosure Of Commitments And Contingent Liabilities Text Block Abstract

CONTINGENCIES

NOTE 10: CONTINGENCIES

There has been no change in contingent liabilities since the last annual reporting date.

Intangible Assets

6 Months Ended

Dec. 31, 2022

Intangible Assets [Abstract]

INTANGIBLE ASSETS

NOTE 6: INTANGIBLE ASSETS

	31 December 2022		30 June 2022
	$		$
Patents at cost		22,822,185		-
Trademarks at cost		28,904,234		-
Other intangible assets at cost		991,008		-
Accumulated amortisation (2)		-		-
Total intangible assets ⁽¹⁾		52,717,427		-

On 5 August 2022, the Company completed the acquisition on APIRx Pharmaceuticals via the issuance of 218,169,506 IHL ordinary shares to the stakeholders of APIRx in an all–scrip transaction. As substantially all of the fair value of the assets acquired in the transaction relates to intangible assets (patents, trademarks, active clinical and pre-clinical research and development projects), the transaction has been determined to be an asset acquisition and not a business combination. In addition to the shares issued to APIRx, the Company issued 13,090,170 IHL ordinary shares & 9,000,000 IHL options to Ryba LLC as part of their engagement terms as lead M&A advisors, which were included in the cost of the assets acquired. The total cost was allocated to the acquired assets on the basis of the assets’ relative fair values. Refer to note 5 & 9 for further details.

2.	Patents have been assessed to have a 13-year useful life; trademarks have an indefinite useful life. There has been no amortisation at period end as the assets are not available for use yet.

	31 December 2022		30 June 2022
Movements:	$		$
Carrying amount at the beginning of the year		-		-
Acquired intangibles (1)		52,717,427		-
Amortisation		-		-
Carrying amount at the end of the year		52,717,427		-

Property, Plant and Equipment

6 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

NOTE 8: PROPERTY, PLANT AND EQUIPMENT

Office Equipment
and Fittings

$

At 1 July 2022
-

Additions 165,845

Depreciation charge for the period (19,311 )

Net book value at 31 December 2022 146,534

Property, Plant and Equipment (Tables)

6 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of property, plant and equipment

	Office Equipment and Fittings
	$
At 1 July 2022		-
Additions		165,845
Depreciation charge for the period		(19,311	)
Net book value at 31 December 2022		146,534

Loss Per Share (Tables)

6 Months Ended

Dec. 31, 2022

Loss Per Share [Abstract]

Schedule of weighted average number of ordinary shares on issue

		31 December 2022				31 December 2021
Weighted average number of shares			1,391,098,095				1,147,811,124

Statement of Significant Accounting Policies

6 Months Ended

Dec. 31, 2022

Disclosure of Significant Accounting Policies Text Block [Abstract]

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Incannex Healthcare Limited (the “Company”) and its consolidated subsidiaries (collectively, the “Group”) is a clinical stage pharmaceutical development company that is developing unique medicinal cannabis pharmaceutical products and psychedelic medicine therapies.

(a) Statement of compliance

The interim consolidated financial statements (the interim financial statements) are general purpose interim financial statements and have been have prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 Interim Financial Reporting, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’.

The interim financial statements comprise the interim financial statements for the Group. For the purposes of preparing the interim financial statements, the Group is a for-profit entity.

The interim financial statements do not include full disclosures of the type normally included in the full financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Group as in the full financial report. It is recommended interim financial statements be read in conjunction with the full financial report for the year ended 30 June 2022 and any public announcements made by Incannex Healthcare Limited and its subsidiaries during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the ASX Listing Rules.

The accounting policies and methods of computation adopted are consistent with those of the previous financial year and corresponding half-year except for the impact of the new standards and interpretations effective 1 July 2022 as outlined below and accounting for leases set out in note 7. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards. To ensure comparability with current year disclosures, some presentation changes have been made to comparative information.

The interim financial statements were authorised for issue on 27 February 2022.

The interim financial statements comply with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the interim financial statements and notes thereto, complies with International Financial Reporting Standards (IFRS).

(b) Basis of preparation

The interim financial statements have been prepared on a historical cost basis, except for the revaluation of certain financial instruments to fair value. Cost is based on the fair value of the consideration given in exchange for assets.

The Group is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise noted.

For the purpose of preparing the interim financial statements, the half-year has been treated as a discrete reporting period.

The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

(d) Significant accounting estimates and judgements

The preparation of the interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.

The judgements, estimates and assumptions applied in the interim financial statements, including the key sources of estimation uncertainty were the same as those applied in the Group’s last annual financial statements for the year ended 30 June 2022 – excepting the accounting for the acquisition of APIRX Pharmaceuticals as set out below.

Acquisition of APIRx Pharmaceuticals

The Group has determined that the acquisition of APIRx Pharameticals (“APIRx”) in August 2022 is not deemed a business combination as the acquired set of activities and assets of APIRx did not meet the definition of a business under AASB 3 Business Combinations. Therefore, the transaction has been accounted for as an asset acquisition.

In an asset acquisition , the assets acquired are assigned a carrying amount based on their relative fair values in an asset purchase transaction and no deferred tax will arise in relation to the acquired assets and assumed liabilities as per the initial recognition exemption under AASB 112 Income Taxes.

Furthermore, no goodwill arises on acquisition and transaction costs of the acquisition are included in the capitalised cost of the asset.

In determining when an transaction is an asset acquisition and not a business, significant judgment is required to assess whether the assets acquired constitute a business in accordance with AASB 3. Under AASB 3 a business is an integrated set of activities and assets that is capable of being conducted or managed for the purposes of providing a return, and consists of inputs and processes which, when applied to those inputs has the ability to create outputs.

(e) Going concern

The financial report has been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlements of liabilities in the ordinary course of business.

Share Based Payments (Tables)

6 Months Ended

Dec. 31, 2022

Disclosure of Share Based Payment Arrangements Text Block [Abstract]

Schedule of recognised share based payment expense

	31 December 2022		31 December 2021
	$		$
Expense arising from equity settled share-based payment transactions		1,639,567		45,509
Total share-based payment expense		1,639,567		45,509

Schedule of illustrates the number and movements in unlisted options during the period

	31 December 2022
	No.
At 1 July 2022		82,995,314
Options exercised during the period		(2,027	)
Options issued to management and directors during the period ⁽¹⁾		5,000,000
Options issued to advisors during the period ⁽²⁾		9,000,000
Other options issued during the period ⁽³⁾		63,414,635
Outstanding at the end of the period		160,407,922

As part of Mr Robert Clark’s appointment to the board and remuneration he was issued 5,000,000 options.

On 4 August 2022, the Company issued 9,000,000 options to Ryba LLC pursuant to the mandate executed between the companies in November 2021. The options were issued as the transaction between the Company and APIRx was deemed complete on 04 August 2022.

On 5 December 2022, the Company issued 63,414,635 free attaching options as part of the $13m institutional share placement agreement. These options are not share based payments however are included in the table above to provide an accurate representation of the options outstanding at the end of the period.

Schedule of the fair value of the options granted

	$1.000 Options		$1.500 Options		$0.612 Options		$0.690 Options		$0.765 Options
Number		2,500,000		2,500,000		3,000,000		3,000,000		3,000,000
Expected volatility (%)		90		90		90		90		90
Risk-free interest rate (%)		3.18		3.18		2.86		2.86		2.86
Expected life of option (years)		1.5		1.5		3		3		3
Exercise price (dollars)		1.000		1.500		0.612		0.690		0.765
Grant date share price (dollars)		0.235		0.235		0.225		0.225		0.225
Vesting date		29-Nov-22		29-Nov-22		04-Aug-22		04-Aug-22		04-Aug-22
Valuation	$	57,500	$	30,000	$	243,000	$	228,000	$	213,000

Related Party Disclosures (Details) - Schedule of holdings in securities - shares	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Mr Troy Valentine [Member]
Related Party Disclosures (Details) - Schedule of holdings in securities [Line Items]
Options	2,800,000
Ordinary Shares	36,651,198	33,851,198
Mr Peter Widdows [Member]
Related Party Disclosures (Details) - Schedule of holdings in securities [Line Items]
Options
Ordinary Shares	16,573,685	16,573,685
Mr Robert Clark [Member]
Related Party Disclosures (Details) - Schedule of holdings in securities [Line Items]
Options	5,000,000
Ordinary Shares
Dr George Anastassov [Member]
Related Party Disclosures (Details) - Schedule of holdings in securities [Line Items]
Options
Ordinary Shares	66,972,077
Mr Joel Latham [Member]
Related Party Disclosures (Details) - Schedule of holdings in securities [Line Items]
Options	10,100,000	4,500,000
Ordinary Shares	23,748,414	18,148,414
Dr Sud Agarwal [Member]
Related Party Disclosures (Details) - Schedule of holdings in securities [Line Items]
Options
Ordinary Shares		107,303,093

Share Based Payments (Details) - shares		6 Months Ended
Share Based Payments (Details) - shares	Dec. 05, 2022	Dec. 31, 2022	Aug. 04, 2022
Disclosure Of Share Based Payment Arrangements Text Block [Abstract]
Shares issued		5,000,000	9,000,000
Institutional share placement agreement, description	the Company issued 63,414,635 free attaching options as part of the $13m institutional share placement agreement.
Ordinary shares, description		There were 218,169,506 IHL ordinary shares issued to the vendors APIRx as part of the asset acquisition, in addition the Company issued 13,090,170 IHL ordinary shares to Ryba LLC as lead M&A advisors.

Intangible Assets (Details)	Aug. 05, 2022 shares
Intangible Assets (Details) [Line Items]
Ordinary shares	218,169,506
Options of shares	9,000,000
IHL [Member]
Intangible Assets (Details) [Line Items]
Ordinary shares	13,090,170

Intangible Assets (Details) - Schedule of movements - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2022	Jun. 30, 2022
Schedule Of Movements Abstract
Carrying amount at the beginning of the year
Acquired intangibles	52,717,427
Amortisation
Carrying amount at the end of the year	$ 52,717,427

Significant Events After Balance Date

6 Months Ended

Dec. 31, 2022

Significant events after balance date [Abstract]

SIGNIFICANT EVENTS AFTER BALANCE DATE

NOTE 13: SIGNIFICANT EVENTS AFTER BALANCE DATE

No matter or circumstance has arisen since 31 December 2022 that has significantly affected, or may significantly affect the Group’s operations, the results of those operations, or the Group’s state of affairs in future financial years.

Share Based Payments

6 Months Ended

Dec. 31, 2022

Disclosure of Share Based Payment Arrangements Text Block [Abstract]

Share based payments

NOTE 5: SHARE BASED PAYMENTS

(a) Recognised share-based payment expense

	31 December 2022		31 December 2021
	$		$
Expense arising from equity settled share-based payment transactions		1,639,567		45,509
Total share-based payment expense		1,639,567		45,509

(b) Share options

The following table illustrates the number and movements in unlisted options during the period.

	31 December 2022
	No.
At 1 July 2022		82,995,314
Options exercised during the period		(2,027	)
Options issued to management and directors during the period ⁽¹⁾		5,000,000
Options issued to advisors during the period ⁽²⁾		9,000,000
Other options issued during the period ⁽³⁾		63,414,635
Outstanding at the end of the period		160,407,922

As part of Mr Robert Clark’s appointment to the board and remuneration he was issued 5,000,000 options.

The following table provides assumptions made in determining the fair value of the options granted during the year.

	$1.000 Options		$1.500 Options		$0.612 Options		$0.690 Options		$0.765 Options
Number		2,500,000		2,500,000		3,000,000		3,000,000		3,000,000
Expected volatility (%)		90		90		90		90		90
Risk-free interest rate (%)		3.18		3.18		2.86		2.86		2.86
Expected life of option (years)		1.5		1.5		3		3		3
Exercise price (dollars)		1.000		1.500		0.612		0.690		0.765
Grant date share price (dollars)		0.235		0.235		0.225		0.225		0.225
Vesting date		29-Nov-22		29-Nov-22		04-Aug-22		04-Aug-22		04-Aug-22
Valuation	$	57,500	$	30,000	$	243,000	$	228,000	$	213,000

There were no Performance Shares and Performance Rights on issued at the beginning of the period and no new Performance Shares and Performance Rights issued during the period.

(d) Ordinary shares

There were 218,169,506 IHL ordinary shares issued to the vendors APIRx as part of the asset acquisition, in addition the Company issued 13,090,170 IHL ordinary shares to Ryba LLC as lead M&A advisors. The fair value of the shares was determined with reference to the ASX share price at the date at which the shares were granted. Refer to note 6 & 9 for further details.

Related Party Disclosures

6 Months Ended

Dec. 31, 2022

Disclosure Of Related Party Text Block Abstract

RELATED PARTY DISCLOSURES

NOTE 12: RELATED PARTY DISCLOSURES

Directors’ holdings in securities

31 December 2022	Options No.		Ordinary Shares No.
Mr Troy Valentine		2,800,000		36,651,198
Mr Peter Widdows		-		16,573,685
Mr Robert Clark		5,000,000		-
Dr George Anastassov		-		66,972,077
Mr Joel Latham		10,100,000		23,748,414

31 December 2021	Options No.		Ordinary Shares No.
Mr Troy Valentine		-		33,851,198
Mr Peter Widdows		-		16,573,685
Dr Sud Agarwal		-		107,303,093
Mr Joel Latham		4,500,000		18,148,414

Share Based Payments (Details) - Schedule of recognised share based payment expense - USD ($)	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Schedule of Recognised Share Based Payment Expense [Abstract]
Expense arising from equity settled share-based payment transactions	$ 1,639,567	$ 45,509
Total share-based payment expense	$ 1,639,567	$ 45,509

Share Based Payments (Details) - Schedule of the fair value of the options granted	6 Months Ended
	Dec. 31, 2022 USD ($) $ / shares shares
$1.000 Options [Member]
Share Based Payments (Details) - Schedule of the fair value of the options granted [Line Items]
Number \| shares	2,500,000
Expected volatility (%)	90.00%
Risk-free interest rate (%)	3.18%
Expected life of option (years)	1 year 6 months
Exercise price (dollars)	$ 1
Grant date share price (dollars)	$ 0.235
Vesting date	29-Nov-22
Valuation \| $	$ 57,500
$1.500 Options [Member]
Share Based Payments (Details) - Schedule of the fair value of the options granted [Line Items]
Number \| shares	2,500,000
Expected volatility (%)	90.00%
Risk-free interest rate (%)	3.18%
Expected life of option (years)	1 year 6 months
Exercise price (dollars)	$ 1.5
Grant date share price (dollars)	$ 0.235
Vesting date	29-Nov-22
Valuation \| $	$ 30,000
$0.612 Options [Member]
Share Based Payments (Details) - Schedule of the fair value of the options granted [Line Items]
Number \| shares	3,000,000
Expected volatility (%)	90.00%
Risk-free interest rate (%)	2.86%
Expected life of option (years)	3 years
Exercise price (dollars)	$ 0.612
Grant date share price (dollars)	$ 0.225
Vesting date	04-Aug-22
Valuation \| $	$ 243,000
$0.690 Options [Member]
Share Based Payments (Details) - Schedule of the fair value of the options granted [Line Items]
Number \| shares	3,000,000
Expected volatility (%)	90.00%
Risk-free interest rate (%)	2.86%
Expected life of option (years)	3 years
Exercise price (dollars)	$ 0.69
Grant date share price (dollars)	$ 0.225
Vesting date	04-Aug-22
Valuation \| $	$ 228,000
$0.765 Options [Member]
Share Based Payments (Details) - Schedule of the fair value of the options granted [Line Items]
Number \| shares	3,000,000
Expected volatility (%)	90.00%
Risk-free interest rate (%)	2.86%
Expected life of option (years)	3 years
Exercise price (dollars)	$ 0.765
Grant date share price (dollars)	$ 0.225
Vesting date	04-Aug-22
Valuation \| $	$ 213,000

Loss Per Share (Details) - Schedule of weighted average number of ordinary shares on issue - shares	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Schedule of weighted average number of ordinary shares on issue [Abstract]
Weighted average number of shares	1,391,098,095	1,147,811,124

Leases

6 Months Ended

Dec. 31, 2022

Leases [Abstract]

LEASES

NOTE 7: LEASES

	31 December 2022			30 June 2022
	$			$
Amounts recognised in statement of financial position
Right-of-use assets
Right-of-use assets ⁽¹⁾		255,074			-
Depreciation		(31,234	)		-
Net carrying amount		223,840			-

1.	During the half year ended 31 December 2022, the Company entered into a new lease agreement for its corporate head office. The lease has a four-year term.

	31 December 2022		30 June 2022
	$		$
Lease liabilities
Current		50,468		-
Non-current		181,519		-
Total lease liabilities		231,987		-

	31 December 2022		30 June 2022
	$		$
Amounts recognized in statement of comprehensive income
Depreciation charge of right-of-use assets		31,234		-
Net finance expenses		10,976		-
		42,210		-

Accounting Policy

Right-of-use leased assets

A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.

Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.

The Company has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.

Lease Liabilities

A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.

Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.

Revenue

6 Months Ended

Dec. 31, 2022

Revenue [Abstract]

Revenue

NOTE 2: REVENUE

(a) Other income

Interest	120,990	905
Refundable R&D tax offset	1,103,758	782,383
Total other income	1,134,748	783,288

Intangible Assets (Details) - Schedule of intangible assets - USD ($)

6 Months Ended

12 Months Ended

Dec. 31, 2022

Jun. 30, 2022

Schedule Of Intangible Assets Abstract

Patents at cost

$ 22,822,185

Trademarks at cost

28,904,234

Other intangible assets at cost

991,008

Accumulated amortisation

^[1]

Total intangible assets

^[2]

$ 52,717,427

[1]

Patents have been assessed to have a 13-year useful life; trademarks have an indefinite useful life. There has been no amortisation at period end as the assets are not available for use yet.

[2]

Consolidated Statement of Financial Position - USD ($)	Dec. 31, 2022	Jun. 30, 2022
Current assets
Cash and cash equivalents	$ 41,423,744	$ 37,500,931
Trade and other receivables	449,843	294,717
Other financial assets	258,797	83,960
Total current assets	42,132,384	37,879,608
Non-current assets
Property, plant and equipment	146,535
Right-of-use assets	223,840
Intangible assets	52,717,427
Total non-current assets	53,087,802
Total assets	95,220,186	37,879,608
Current liabilities
Trade and other payables	1,069,115	2,010,533
Lease liabilities	50,468
Total current liabilities	1,119,583	2,010,533
Non-current liabilities
Lease liabilities	181,519
Total non-liabilities	181,519
Total liabilities	1,301,102	2,010,533
Net assets	93,919,084	35,869,075
Equity
Issued capital	150,842,248	86,586,794
Reserves	10,400,761	8,077,191
Accumulated losses	(67,323,925)	(58,794,910)
Total equity	$ 93,919,084	$ 35,869,075

Segment Reporting (Tables)

6 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of revenue and expenses for the period and assets and liabilities

6 months ended 31 December 2022
	Cannabinoid products			Psychedelic products			Corporate			Consolidated
	$			$			$			$
Cost of sales		-			-			-			-
Other revenue		1,013,757			-			120,990			1,134,748
Other expenses		(3,683,810	)		(971,459	)		(5,008,494	)		(9,663,763	)
Loss before tax		(2,670,052	)		(971,459	)		(4,887,504	)		(8,529,015	)

Segment assets		53,557,517			140,418			41,522,251			95,220,186

Segment liabilities		(383,643	)		(94,505	)		(822,954	)		(1,301,102	)

6 months ended 31 December 2021
	Cannabinoid products			Psychedelic products			Corporate			Consolidated
	$			$			$			$
Cost of sales		(174,294	)		-			-			(174,294	)
Other revenue		97			-			783,191			783,288
Other expenses		(2,161,705	)		(280,045	)		(3,412,118	)		(5,853,868	)
Loss before tax		(2,335,902	)		(280,045	)		(2,628,927	)		(5,244,874	)

Segment assets		697,073			7,374			19,314,107			20,018,554

Segment liabilities		(155,467	)		(11,000	)		(381,315	)		(547,782	)

Leases (Details) - Schedule of comprehensive income - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2022	Jun. 30, 2022
Amounts recognized in statement of comprehensive income
Depreciation charge of right-of-use assets	$ 31,234
Net finance expenses	10,976
Total	$ 42,210

- Definition

The amount of assets that are: (a) cash; (b) an equity instrument of another entity; (c) a contractual right: (i) to receive cash or another financial asset from another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or (d) a contract that will, or may be, settled in the entity’s own equity instruments and is: (i) a non-derivative for which the entity is, or may be, obliged to receive a variable number of the entity’s own equity instruments; or (ii) a derivative that will, or may be, settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not include puttable financial instruments classified as equity instruments in accordance with paragraphs 16A-16B of IAS 32, instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation and are classified as equity instruments in accordance with paragraphs 16C-16D of IAS 32, or instruments that are contracts for the future receipt or delivery of the entity’s own equity instruments. [Refer: Financial instruments, class [member]; Financial liabilities]

+ References + Details

Segment Reporting

6 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 4: SEGMENT REPORTING

AASB 8 Operating Segments (“AASB 8”) requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Operating Decision Maker in order to allocate resources to the segment and to assess its performance.

The Group’s operating segments have been determined with reference to the monthly management accounts used by the Chief Operating Decision maker to make decisions regarding the Group’s operations and allocation of working capital. Due to the size and nature of the Group, the Board as a whole has been determined as the Chief Operating Decision Maker.

Based on the quantitative thresholds included in AASB 8, for the current reporting period, the Group has two reportable segments, being (1) distribution of medicinal cannabis products; and (2), development of psychedelic medicines and therapies - and currently one geographical segment, namely Australia.

The revenues and results of these segments of the Group as a whole are set out in the statement of comprehensive income and the assets and liabilities of the Group as a whole are set out in the statement of financial position.

A summary of revenue and expenses for the period and assets and liabilities at the end of the period for each segment is shown below:

6 months ended 31 December 2022
	Cannabinoid products			Psychedelic products			Corporate			Consolidated
	$			$			$			$
Cost of sales		-			-			-			-
Other revenue		1,013,757			-			120,990			1,134,748
Other expenses		(3,683,810	)		(971,459	)		(5,008,494	)		(9,663,763	)
Loss before tax		(2,670,052	)		(971,459	)		(4,887,504	)		(8,529,015	)

Segment assets		53,557,517			140,418			41,522,251			95,220,186

Segment liabilities		(383,643	)		(94,505	)		(822,954	)		(1,301,102	)

6 months ended 31 December 2021
	Cannabinoid products			Psychedelic products			Corporate			Consolidated
	$			$			$			$
Cost of sales		(174,294	)		-			-			(174,294	)
Other revenue		97			-			783,191			783,288
Other expenses		(2,161,705	)		(280,045	)		(3,412,118	)		(5,853,868	)
Loss before tax		(2,335,902	)		(280,045	)		(2,628,927	)		(5,244,874	)

Segment assets		697,073			7,374			19,314,107			20,018,554

Segment liabilities		(155,467	)		(11,000	)		(381,315	)		(547,782	)

Document And Entity Information	6 Months Ended
Document And Entity Information	Dec. 31, 2022
Document Information Line Items
Entity Registrant Name	Incannex Healthcare Limited
Document Type	6-K
Current Fiscal Year End Date	--06-30
Amendment Flag	false
Entity Central Index Key	0001873875
Document Period End Date	Dec. 31, 2022
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity File Number	001-41106

Consolidated Statement of Changes in Equity - USD ($)	Issued Capital	Reserves	Accumulated Losses	Total
Balance at Jun. 30, 2021	$ 45,852,107	$ 6,612,641	$ (43,891,002)	$ 8,573,746
Loss for the period			(5,244,874)	(5,244,874)
Other comprehensive income
Total comprehensive loss for the period			(5,244,874)	(5,244,874)
Shares issued on exercise of options	16,129,282			16,129,282
Options granted
Share based payments		45,509		45,509
Share issue costs	(32,891)			(32,891)
Balance at Dec. 31, 2021	61,948,498	6,658,151	(49,135,876)	19,470,772
Balance at Jun. 30, 2022	86,586,794	8,077,191	(58,794,910)	35,869,075
Loss for the period			(8,529,015)	(8,529,015)
Other comprehensive income
Total comprehensive loss for the period			(8,529,015)	(8,529,015)
Asset acquisition shares issued	49,088,139			49,088,139
Placement shares issued	13,000,000			13,000,000
Shares issued to advisors	2,945,288			2,945,288
Shares issued on exercise of options	2,027			2,027
Options issued to advisors		684,000		684,000
Share based payments		1,639,570		1,639,570
Share issue costs	(780,000)			(780,000)
Balance at Dec. 31, 2022	$ 150,842,248	$ 10,400,761	$ (67,323,925)	$ 93,919,084

Issued Capital (Details) - Schedule of ordinary shares movements during years - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2022	Jun. 30, 2022
Schedule of Ordinary Shares Movements During Years [Abstract]
At beginning of year, value	$ 86,586,794	$ 45,852,107
At beginning of year, share	1,292,334,028	1,068,411,224
Issue of new shares - placements, value	$ 13,000,000	$ 400,000
Issue of new shares - placements, share	63,414,635	5,000,000
Issue of new shares – share based payments, value
Issue of new shares – share based payments, share		10,000,000
Issue of new shares –APIRx acquisition, value	$ 49,088,139
Issue of new shares –APIRx acquisition, share	218,169,506
Exercise of options, value	$ 2,027	$ 40,274,243
Exercise of options, share	2,027	207,650,638
Shares in lieu of advisor fees, value	$ 2,945,288	$ 450,000
Shares in lieu of advisor fees, share	13,090,170	1,272,166
Share issue costs, value	$ (780,000)	$ (389,555)
Share issue costs, share
At end of year, value	$ 150,842,248	$ 86,586,794
At end of year, share	1,587,010,366	1,292,334,028

Intangible Assets (Tables)

6 Months Ended

Dec. 31, 2022

Intangible Assets [Abstract]

Schedule of movements

	31 December 2022		30 June 2022
	$		$
Patents at cost		22,822,185		-
Trademarks at cost		28,904,234		-
Other intangible assets at cost		991,008		-
Accumulated amortisation (2)		-		-
Total intangible assets ⁽¹⁾		52,717,427		-

2.	Patents have been assessed to have a 13-year useful life; trademarks have an indefinite useful life. There has been no amortisation at period end as the assets are not available for use yet.

Schedule of movements

	31 December 2022		30 June 2022
Movements:	$		$
Carrying amount at the beginning of the year		-		-
Acquired intangibles (1)		52,717,427		-
Amortisation		-		-
Carrying amount at the end of the year		52,717,427		-

Issued Capital (Details) - Schedule of issued capital - USD ($)	Dec. 31, 2022	Jun. 30, 2022
Schedule of Issued Capital [Abstract]
Ordinary shares	$ 150,842,248	$ 86,586,794
Total ordinary shares	$ 150,842,248	$ 86,586,794

Share Based Payments (Details) - Schedule of illustrates the number and movements in unlisted options during the period

6 Months Ended

Dec. 31, 2022

USD ($)

Schedule of illustrates the number and movements in unlisted options during the period [Abstract]

At 1 July 2022

$ 82,995,314

Options exercised during the period

(2,027)

Options issued to management and directors during the period

5,000,000

^[1]

Options issued to advisors during the period

9,000,000

^[2]

Other options issued during the period

63,414,635

^[3]

Outstanding at the end of the period

$ 160,407,922

[1]	As part of Mr Robert Clark’s appointment to the board and remuneration he was issued 5,000,000 options.
[2]	On 4 August 2022, the Company issued 9,000,000 options to Ryba LLC pursuant to the mandate executed between the companies in November 2021. The options were issued as the transaction between the Company and APIRx was deemed complete on 04 August 2022.
[3]	On 5 December 2022, the Company issued 63,414,635 free attaching options as part of the $13m institutional share placement agreement. These options are not share based payments however are included in the table above to provide an accurate representation of the options outstanding at the end of the period.

Issued Capital

6 Months Ended

Dec. 31, 2022

Issued Capital [Abstract]

ISSUED CAPITAL

NOTE 9: ISSUED CAPITAL

(a) Issued capital

	31 December 2022		30 June 2022
	$		$
Ordinary shares		150,842,248		86,586,794
Total ordinary shares		150,842,248		86,586,794

(b) Ordinary shares — movements during years

	31 December 2022 $			31 December 2022 No.		30 June 2022 $			30 June 2022 No.

At beginning of year		86,586,794			1,292,334,028		45,852,107			1,068,411,224

Issue of new shares - placements		13,000,000			63,414,635		400,000			5,000,000

Issue of new shares – share based payments		-			-		-			10,000,000

Issue of new shares –APIRx acquisition		49,088,139			218,169,506		-			-

Exercise of options		2,027			2,027		40,274,243			207,650,638

Shares in lieu of advisor fees		2,945,288			13,090,170		450,000			1,272,166

Share issue costs		(780,000	)		-		(389,555	)		-

At end of year		150,842,248			1,587,010,366		86,586,794			1,292,334,028

Revenue (Details) - Schedule of revenue - USD ($)	6 Months Ended
Revenue (Details) - Schedule of revenue - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Schedule of Revenue [Abstract]
Interest	$ 120,990	$ 905
Refundable R&D tax offset	1,103,758	782,383
Total other income	$ 1,134,748	$ 783,288

Leases (Details) - Schedule of financial position - USD ($)

6 Months Ended

12 Months Ended

Dec. 31, 2022

Jun. 30, 2022

Right-of-use assets

Right-of-use assets

^[1]

$ 255,074

Depreciation

(31,234)

Net carrying amount

$ 223,840

[1]	During the half year ended 31 December 2022, the Company entered into a new lease agreement for its corporate head office. The lease has a four-year term.

Loss Per Share

6 Months Ended

Dec. 31, 2022

Loss Per Share [Abstract]

LOSS PER SHARE

NOTE 3: LOSS PER SHARE

Basic loss per share has been calculated using the loss attributable to shareholders of the Parent Company and the weighted average number of ordinary shares on issue.

		31 December 2022				31 December 2021
Weighted average number of shares			1,391,098,095				1,147,811,124

Related Party Disclosures (Tables)

6 Months Ended

Dec. 31, 2022

Disclosure Of Related Party Text Block Abstract

Schedule of holdings in securities

31 December 2022	Options No.		Ordinary Shares No.
Mr Troy Valentine		2,800,000		36,651,198
Mr Peter Widdows		-		16,573,685
Mr Robert Clark		5,000,000		-
Dr George Anastassov		-		66,972,077
Mr Joel Latham		10,100,000		23,748,414

31 December 2021	Options No.		Ordinary Shares No.
Mr Troy Valentine		-		33,851,198
Mr Peter Widdows		-		16,573,685
Dr Sud Agarwal		-		107,303,093
Mr Joel Latham		4,500,000		18,148,414

Segment Reporting (Details) - Schedule of revenue and expenses for the period and assets and liabilities - USD ($)	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cannabinoid Products [Member]
Segment Reporting (Details) - Schedule of revenue and expenses for the period and assets and liabilities [Line Items]
Cost of sales		$ (174,294)
Other revenue	1,013,757	97
Other expenses	(3,683,810)	(2,161,705)
Loss before tax	(2,670,052)	(2,335,902)
Segment assets	53,557,517	697,073
Segment liabilities	(383,643)	(155,467)
Psychedelic products [Member]
Segment Reporting (Details) - Schedule of revenue and expenses for the period and assets and liabilities [Line Items]
Cost of sales
Other revenue
Other expenses	(971,459)	(280,045)
Loss before tax	(971,459)	(280,045)
Segment assets	140,418	7,374
Segment liabilities	(94,505)	(11,000)
Corporate [Member]
Segment Reporting (Details) - Schedule of revenue and expenses for the period and assets and liabilities [Line Items]
Cost of sales
Other revenue	120,990	783,191
Other expenses	(5,008,494)	(3,412,118)
Loss before tax	(4,887,504)	(2,628,927)
Segment assets	41,522,251	19,314,107
Segment liabilities	(822,954)	(381,315)
Consolidated [Member]
Segment Reporting (Details) - Schedule of revenue and expenses for the period and assets and liabilities [Line Items]
Cost of sales		(174,294)
Other revenue	1,134,748	783,288
Other expenses	(9,663,763)	(5,853,868)
Loss before tax	(8,529,015)	(5,244,874)
Segment assets	95,220,186	20,018,554
Segment liabilities	$ (1,301,102)	$ (547,782)

Accounting Policies, by Policy (Policies)	6 Months Ended
Accounting Policies, by Policy (Policies)	Dec. 31, 2022
Accounting Policies [Abstract]
Statement of compliance	(a) Statement of compliance The interim consolidated financial statements (the interim financial statements) are general purpose interim financial statements and have been have prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 Interim Financial Reporting, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’. The interim financial statements comprise the interim financial statements for the Group. For the purposes of preparing the interim financial statements, the Group is a for-profit entity. The interim financial statements do not include full disclosures of the type normally included in the full financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Group as in the full financial report. It is recommended interim financial statements be read in conjunction with the full financial report for the year ended 30 June 2022 and any public announcements made by Incannex Healthcare Limited and its subsidiaries during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the ASX Listing Rules. The accounting policies and methods of computation adopted are consistent with those of the previous financial year and corresponding half-year except for the impact of the new standards and interpretations effective 1 July 2022 as outlined below and accounting for leases set out in note 7. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards. To ensure comparability with current year disclosures, some presentation changes have been made to comparative information. The interim financial statements were authorised for issue on 27 February 2022. The interim financial statements comply with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the interim financial statements and notes thereto, complies with International Financial Reporting Standards (IFRS).
Basis of preparation	(b) Basis of preparation The interim financial statements have been prepared on a historical cost basis, except for the revaluation of certain financial instruments to fair value. Cost is based on the fair value of the consideration given in exchange for assets. The Group is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise noted. For the purpose of preparing the interim financial statements, the half-year has been treated as a discrete reporting period.
Adoption of new and revised standards	(c) Adoption of new and revised standards The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Significant accounting estimates and judgements	(d) Significant accounting estimates and judgements The preparation of the interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates. The judgements, estimates and assumptions applied in the interim financial statements, including the key sources of estimation uncertainty were the same as those applied in the Group’s last annual financial statements for the year ended 30 June 2022 – excepting the accounting for the acquisition of APIRX Pharmaceuticals as set out below. Acquisition of APIRx Pharmaceuticals The Group has determined that the acquisition of APIRx Pharameticals (“APIRx”) in August 2022 is not deemed a business combination as the acquired set of activities and assets of APIRx did not meet the definition of a business under AASB 3 Business Combinations. Therefore, the transaction has been accounted for as an asset acquisition. In an asset acquisition , the assets acquired are assigned a carrying amount based on their relative fair values in an asset purchase transaction and no deferred tax will arise in relation to the acquired assets and assumed liabilities as per the initial recognition exemption under AASB 112 Income Taxes. Furthermore, no goodwill arises on acquisition and transaction costs of the acquisition are included in the capitalised cost of the asset. In determining when an transaction is an asset acquisition and not a business, significant judgment is required to assess whether the assets acquired constitute a business in accordance with AASB 3. Under AASB 3 a business is an integrated set of activities and assets that is capable of being conducted or managed for the purposes of providing a return, and consists of inputs and processes which, when applied to those inputs has the ability to create outputs.
Going concern	(e) Going concern The financial report has been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlements of liabilities in the ordinary course of business.

Consolidated Statement of Comprehensive Income - USD ($)	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Profit or loss [abstract]
Cost of sales		$ (174,294)
Total cost		(174,294)
Other income	1,134,748	783,288
Administration expenses	(281,226)	(130,591)
Advertising and investor relations	(636,367)	(847,967)
Bad debt expense		(134,626)
Consulting, legal and regulatory	(1,035,504)	(1,368,561)
Depreciation expense	(50,544)
Research and development costs	(4,413,647)	(2,401,520)
Occupancy expenses	(51,950)	(53,341)
Salaries and employee benefit expense	(1,554,955)	(871,753)
Share based payment expense	(1,639,570)	(45,509)
Loss before tax	(8,529,015)	(5,244,874)
Income tax benefit (expense)
Net loss for the period	(8,529,015)	(5,244,874)
Total comprehensive loss for the period	$ (8,529,015)	$ (5,244,874)
Earnings per share
Basic loss per share (cents per share) (in Dollars per share)	$ (0.61)	$ (0.47)
Diluted loss per share (cents per share) (in Dollars per share)	$ (0.61)	$ (0.47)

Segment Reporting (Details)	6 Months Ended
Segment Reporting (Details)	Dec. 31, 2022
Segment Reporting [Abstract]
Number of operating segments	2
Number of geographical segment	1

Revenue (Tables)

6 Months Ended

Dec. 31, 2022

Revenue [Abstract]

Schedule of revenue

Interest	120,990	905
Refundable R&D tax offset	1,103,758	782,383
Total other income	1,134,748	783,288

Property, Plant and Equipment (Details) - Schedule of property, plant and equipment	6 Months Ended
	Dec. 31, 2022 USD ($)
Schedule of Property Plant and Equipment [Abstract]
At 1 July 2022
Additions	165,845
Depreciation charge for the period	(19,311)
Net book value at 31 December 2022	$ 146,534

Issued Capital (Tables)

6 Months Ended

Dec. 31, 2022

Issued Capital [Abstract]

Schedule of issued capital

	31 December 2022		30 June 2022
	$		$
Ordinary shares		150,842,248		86,586,794
Total ordinary shares		150,842,248		86,586,794

Schedule of ordinary shares movements during years

	31 December 2022 $			31 December 2022 No.		30 June 2022 $			30 June 2022 No.

At beginning of year		86,586,794			1,292,334,028		45,852,107			1,068,411,224

Issue of new shares - placements		13,000,000			63,414,635		400,000			5,000,000

Issue of new shares – share based payments		-			-		-			10,000,000

Issue of new shares –APIRx acquisition		49,088,139			218,169,506		-			-

Exercise of options		2,027			2,027		40,274,243			207,650,638

Shares in lieu of advisor fees		2,945,288			13,090,170		450,000			1,272,166

Share issue costs		(780,000	)		-		(389,555	)		-

At end of year		150,842,248			1,587,010,366		86,586,794			1,292,334,028

Consolidated Statement of Cash Flows - USD ($)	6 Months Ended
Consolidated Statement of Cash Flows - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities
Payment to suppliers and employees	$ (9,239,347)	$ (6,151,612)
R&D tax refund	1,013,757	782,383
Net interest received	110,014	1,002
Net cash used in operating activities	(8,115,576)	(5,368,227)
Cash flows from investing activities
Property, plant, and equipment additions	(165,845)
Net cash used in investing activities	(165,845)
Cash flows from financing activities
Proceeds from share issues	13,002,027	16,129,282
Share issue costs paid	(780,000)	(32,891)
Repayment of lease liabilities	(23,087)
Net cash provided by financing activities	12,198,940	16,096,391
Net increase in cash and cash equivalents	3,917,519	10,728,164
Cash and cash equivalents at beginning of period	37,500,931	9,123,617
Effect of exchange rate fluctuations on cash held	5,294	(81,276)
Cash and cash equivalents at end of period	$ 41,423,744	$ 19,770,505

Leases (Details) - Schedule of lease liabilities - USD ($)	Dec. 31, 2022	Jun. 30, 2022
Lease liabilities
Current	$ 50,468
Non-current	181,519
Total lease liabilities	$ 231,987