0001213900-24-013611 | 10-Q | XBRL Viewer

Leases (Tables)

6 Months Ended

Dec. 31, 2023

Schedule of Weighted-Average Remaining Lease Term and Discount Rates

The following table summarizes the weighted-average remaining lease term and discount rates for the Company’s operating leases:

	December 31, 2023			June 30, 2023
Lease term (years)		1.48			1.79
Discount rate		9.18	%		9.18	%

Schedule of Lease Costs

The following table summarizes the lease costs pertaining to the Company’s operating leases

	December 31, 2023 $		June 30, 2023 $
	(in thousands)
Operating lease cost		79		66

Schedule of Future Minimum Lease Payments

The following table summarizes the future minimum lease payments due under operating leases as of December 31, 2023, (in thousands):

Operating leases	Amount $ (in thousands)
June 30, 2024		103
June 30, 2025		214
June 30, 2026		208
June 30, 2027		50
June 30, 2028		34

Total minimum lease payments		609

Less amount representing interest		(139	)

Total operating lease liabilities		470

Property, Plant and Equipment, Net

6 Months Ended

Dec. 31, 2023

Property, Plant and Equipment, Net [Abstract]

Property, Plant and Equipment, Net

Note 4 – Property, Plant and Equipment, net

	December 31, 2023 $			June 30, 2023 $
	(in thousands)
Furniture, fittings and equipment		195			157
Assets under construction		412			160
Total property, plant and equipment, gross		607			317
Accumulated depreciation and amortization		(48	)		(23	)
Total property, plant and equipment, net	$	559		$	294

Depreciation expense is recorded within general and administrative in the Consolidated Statements of Operations and Comprehensive Loss and amounted to $12 and $0 for the three months ended December 31, 2023 and 2022, respectively, and $25 and $0 for the six months ended December 31, 2023 and 2022, respectively.

Related Party Transactions (Details) - USD ($)	Dec. 31, 2023	Jun. 30, 2023
Related Party [Member]
Related Party Transactions [Line Items]
Payable to any related parties	$ 0	$ 0

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Dec. 31, 2023	Jan. 31, 2024
Document Information Line Items
Entity Registrant Name	Incannex Healthcare Inc.
Trading Symbol	IXHL
Document Type	10-Q
Current Fiscal Year End Date	--06-30
Entity Common Stock, Shares Outstanding		15,873,113
Amendment Flag	false
Entity Central Index Key	0001873875
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Dec. 31, 2023
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-41106
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	93-2403210
Entity Address, Address Line One	Suite 105
Entity Address, Address Line Two	8 Century Circuit Norwest
Entity Address, City or Town	NSW
Entity Address, Postal Zip Code	2153
Entity Address, Country	AU
City Area Code	+61
Local Phone Number	409 840 786
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

Trade and Other Payables, Accrued Expenses and Other Current Liabilities (Details) - Schedule of Trade and Other Payables, Accrued Expenses and Other Current Liabilities - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Current liabilities
Trade payables	$ 1,952	$ 1,748
Accrued expenses	734	426
Employee leave entitlements	331	263
Total Trade and other payables, accrued expenses and other current liabilities	$ 3,017	$ 2,437

Loss Per Share (Details) - Schedule of Basic and Diluted Net Loss Per Share Attributable to Stockholders - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Schedule of Basic and Diluted Net Loss Per Share Attributable to Stockholders [Abstract]
Basic loss per share - cents per share					$ 37.6	$ 275.58
Basic loss per share	$ (0.33)	$ 0.05	$ (0.38)	$ (2.76)	$ 0.38	$ 2.76
The loss and weighted average number of common stocks used in the calculation of basic loss per share is as follows:
Total comprehensive loss for the year (in Dollars)	$ (4,314)	$ 766	$ (5,550)	$ (42,893)	$ 5,968	$ 41,066
Weighted average number of common stocks (number) (in Shares)	15,873,113	15,398,367	15,873,113	14,901,631	15,873,113	14,901,631

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

Property, Plant and Equipment, Net (Details) - Schedule of Property, Plant and Equipment, Net - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Schedule of Property, Plant and Equipment Net [Abstract]
Furniture, fittings and equipment	$ 195	$ 157
Assets under construction	412	160
Total property, plant and equipment, gross	607	317
Accumulated depreciation and amortization	(48)	(23)
Total property, plant and equipment, net	$ 559	$ 294

Leases

6 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Note 6 – Leases

For fiscal 2023, the Group entered into a three new lease agreement for its corporate head office in Sydney, Melbourne office and Clarion Clinic site. The leases have four, five and three-year terms respectively. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include renewal options at the election of the Company to renew or extend the lease for an additional three to five years. These optional periods have not been considered in the determination of the right-of-use assets or lease liabilities associated with these leases as the Company did not consider it reasonably certain it would exercise the options.

The following table summarizes the weighted-average remaining lease term and discount rates for the Company’s operating leases:

	December 31, 2023			June 30, 2023
Lease term (years)		1.48			1.79
Discount rate		9.18	%		9.18	%

The following table summarizes the lease costs pertaining to the Company’s operating leases

	December 31, 2023 $		June 30, 2023 $
	(in thousands)
Operating lease cost		79		66

Cash paid for amounts included in the measurement of operating lease liabilities during six months ended December 31, 2023 and fiscal year June 30, 2023 was $73 and $61, respectively, and was included within net cash used in operating activities in the cash flows.

The following table summarizes the future minimum lease payments due under operating leases as of December 31, 2023, (in thousands):

Operating leases	Amount $ (in thousands)
June 30, 2024		103
June 30, 2025		214
June 30, 2026		208
June 30, 2027		50
June 30, 2028		34

Total minimum lease payments		609

Less amount representing interest		(139	)

Total operating lease liabilities		470

As of December 31, 2023, the Company’s operating lease has a weighted-average remaining lease term of 1.48 years and a discount rate of 9.18%.

Additional Paid-in Capital

6 Months Ended

Dec. 31, 2023

Additional Paidin Capital [Abstract]

Additional paid-in capital

Note 9 – Additional paid-in capital

Additional paid-in capital:

	December 31, 2023 $		December 31, 2022 $
	(in thousands, expect per share data)
Opening balance		116,294		69,075
Options issued to advisors¹		-		477
Options exercised				2
Issues of new options – placement		-		72
Equity instruments issued to management and directors²		3,598		2,150
Share placements³				8,830
Share issued to advisors⁵				2,051
Asset acquisition shares issued⁴				34,171
Issuance costs⁶				(530	)
At December 31, 2023		119,892		116,298

In August 2022, Incannex Australia issued 9,000,000 options to Ryba LLC pursuant to the mandate executed between the parties in November 2021. As the transaction between the Company and APIRx was deemed complete in August 2022, the options were issued then.

Relates to the amortization of shares and options issued as share-based payments during the current and prior periods.

In December 2022, Incannex Australia raised $8.83 million from a placement of 634,146 ordinary shares to institutional and professional investors in a private placement.

⁴

In August 2022, Incannex Australia completed the acquisition on APIRx Pharmaceuticals via the issuance of 2,181,695 ordinary shares of Incannex Australia to the owners of APIRx in an all–scrip transaction.

⁵

In August 2022, Incannex Australia issued 130,902 ordinary shares to Ryba LLC as lead M&A Advisors on the APIRx acquisition.

In December 2022, Incannex Australia paid a commission of $530 to Bell Potter, as placement agent, for its services leading the private placement completed that month.

The equity based premium reserve is used to record the value of equity issued to raise capital, and for share-based payments.

Prepaid Expenses and Other Current Assets

6 Months Ended

Dec. 31, 2023

Prepaid Expenses and Other Current Assets [Abstract]

Prepaid expenses and other current assets

Note 3 – Prepaid expenses and other current assets

	December 31, 2023 $		June 30, 2023 $
	(in thousands)
Prepayments¹		1,188		686
R&D tax credit recoverable²		5,337		-
GST recoverable		253		191
Total other assets		6,778		877

Prepayments consist of prepaid clinical trial insurances, prepaid R&D expenditure relating to PsiGAD and IHL-675A clinical trials and scientific, marketing, and adverting subscription services.

R&D tax incentive receivable for period ended December 31, 2023 fiscal year ended June 30, 2023.

Re-domiciliation and Business (Tables)

6 Months Ended

Dec. 31, 2023

Re-domiciliation and Business [Abstract]

Schedule of Consolidated Financial Statements

The consolidated financial statements of the Company are presented in United States dollars and consist of Incannex Healthcare Inc. and the following wholly-owned subsidiaries:

Subsidiary		Jurisdiction
Incannex Healthcare Limited		Victoria, Australia
Incannex Pty Ltd		Victoria, Australia
Psychennex Pty Ltd		Victoria, Australia
APIRx Pharmaceutical USA, LLC		Delaware
APIRx Pharmaceuticals Holding BV		IJsselstein, Netherlands
Clarion Clinics Group Pty Ltd		Victoria, Australia
Clarion Model Clinic Pty Ltd		Victoria, Australia
Psychennex Licensing and Franchising Pty Ltd		Victoria, Australia

Share-based payments (Details) - Schedule of Stock Options Activity - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Jun. 30, 2023	Dec. 31, 2023	Sep. 30, 2023
Schedule of Stock Options Activity [Abstract]
Number of Shares, Outstanding , Ending balance	633,508	284,008	633,508
Weighted Average Exercise Price, Outstanding Ending balance	$ 24.19	$ 36.37	$ 24.19
Weighted Average Remaining Contractual Term, Outstanding Ending balance	1 year 4 months 6 days	2 years 14 days	1 year 1 month 6 days
Aggregate Intrinsic Value (in thousands), Outstanding Ending balance	$ 442	$ 100	$ 442
Number of Shares, Granted
Weighted Average Exercise Price, Granted
Number of Shares, Exercised
Weighted Average Exercise Price, Exercised
Number of Shares, Cancelled or forfeited		349,500
Weighted Average Exercise Price, Cancelled or forfeited		$ 14.29
Aggregate Intrinsic Value (in thousands), Cancelled or forfeited		$ 720
Number of Shares, Unvested as of December 31, 2023		47,337
Weighted Average Exercise Price, Unvested as of December 31, 2023		$ 22.23
Weighted Average Remaining Contractual Term, Unvested as of December 31, 2023		3 years 9 months
Aggregate Intrinsic Value (in thousands), Unvested as of December 31, 2023		$ 125

Prepaid Expenses and Other Current Assets (Details) - Schedule of Prepaid Expenses and Other Current Assets - USD ($)
$ in Thousands

Dec. 31, 2023

Jun. 30, 2023

Schedule of Prepaid Expenses and Other Current Assets [Abstract]

Prepayments

^[1]

$ 1,188

$ 686

R&D tax credit recoverable

^[2]

5,337

GST recoverable

253

191

Total other assets

$ 6,778

$ 877

[1]	Prepayments consist of prepaid clinical trial insurances, prepaid R&D expenditure relating to PsiGAD and IHL-675A clinical trials and scientific, marketing, and adverting subscription services.
[2]	R&D tax incentive receivable for period ended December 31, 2023 fiscal year ended June 30, 2023.

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (Parentheticals) - $ / shares	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Net loss per share, diluted	$ (0.33)	$ 0.05	$ (0.38)	$ (2.76)
Weighted average number of shares outstanding, diluted	15,873,113	15,398,367	15,873,113	14,901,631

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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-Topic 250
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-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

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+ Details

Share-based payments (Tables)

6 Months Ended

Dec. 31, 2023

Share-based payments [Abstract]

Schedule of Share-Based Payments

	December 31, 2023 $		December 31, 2022 $
	(in thousands)
Research and development		-		-
General and administrative		3,471		1,100
Total share-based compensation expense		3,471		1,100

Schedule of Restricted Stock Activity

A summary of the changes in the Company’s restricted stock activity for the period ended December 31, 2023, are as follows:

	Numbers of Shares		Weighted Average Grant Date Fair Value $
	(in thousands, expect per share data)
Unvested and Outstanding as of June 30, 2023		62,514		149
Granted		2,316,715		1,007
Vested		639,014		961
Forfeited		1,000		29
Unvested and Outstanding as of December 31, 2023		1,739,215		1,006

Schedule of Stock Options Activity

A summary of the changes in the Company’s stock options activity for the period ended December 31, 2023, are as follows:

	Number of Shares		Weighted Average Exercise Price ($)		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (in thousands) ($)
Outstanding as of June 30, 2023		633,508		24.19		1.35		442
Granted		-		-		-		-

Exercised		-		-		-		-
Cancelled or forfeited		-		-		-		-

Outstanding as of September 30, 2023		633,508		24.19		1.10		442
Granted		-		-		-		-
Exercised		-		-		-		-
Cancelled or forfeited		349,500		14.29		-		720
Outstanding as of December 31, 2023		284,008		36.37		2.04		100
Unvested as of December 31, 2023		47,337		22.23		3.75		125

Schedule of Weighted-Average Assumptions used Black-Scholes Option Pricing

The weighted-average assumptions used in the Black-Scholes option pricing model to determine the fair value of the share options granted to employees and directors during the period ended December 31, 2023 and June 30, 2023 were as follow:

	December 31, 2023		June 30, 2023
Expected option life (years)		-		1.5
Expected volatility		-		90	%
Risk-free interest rate		-		3.18	%
Expected dividend yield		-		-
Fair value of underlying shares of common stock		-		1.17

Property, Plant and Equipment, Net (Details) - USD ($)	3 Months Ended		6 Months Ended
Property, Plant and Equipment, Net (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment, Net [Abstract]
Depreciation expense	$ 12	$ 0	$ 25	$ 0

Stockholder's Equity/Issued Capital (Details) - Schedule of Consolidated Financial Statements - Common Stock [Member] - Equity [Member] - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Dec. 31, 2023

Sep. 30, 2023

Dec. 31, 2022

Jun. 30, 2023

Dec. 31, 2022

Condensed Financial Statements, Captions [Line Items]

Balance

$ 2

$ 1

Balance (in Shares)

15,873,113

15,238,946

15,873,113

12,926,349

Issues of new shares – placements

Issues of new shares – placements (in Shares)

^[1]

634,146

Issues of new shares – acquisition

$ 1

^[2]

Issues of new shares – acquisition (in Shares)

2,181,695

^[2]

Issues of new shares – employees and directors

Issues of new shares – employees and directors (in Shares)

Exercise of options

Exercise of options (in Shares)

Shares in lieu of advisor fees

Shares in lieu of advisor fees (in Shares)

130,902

^[3]

Share issue costs

Balance

$ 2

Balance (in Shares)

15,873,113

[1]	In December 2022, Incannex Australia raised $8.83 million from a placement of 634,146 ordinary shares to institutional and professional investors in a private placement.
[2]	In August 2022, Incannex Australia completed the acquisition on APIRx Pharmaceuticals via the issuance of 2,181,695 ordinary shares of Incannex Australia to the owners of APIRx in an all–scrip transaction.
[3]	In August 2022, Incannex Australia issued 130,902 ordinary shares to Ryba LLC as lead M&A Advisors on the APIRx acquisition.

Re-domiciliation and Business

6 Months Ended

Dec. 31, 2023

Re-domiciliation and Business [Abstract]

Re-domiciliation and Business

Note 1 – Re-domiciliation and Business

Incannex Healthcare Inc. is a corporation formed under the laws of Delaware in July 2023. In November 2023, Incannex Healthcare Inc. acquired all the outstanding ordinary shares of Incannex Healthcare Limited, an Australian corporation (“Incannex Australia”), pursuant to a scheme of arrangement under Australian law (the “Re-domiciliation”). As a result of the Re-domiciliation, Incannex Australia became a wholly-owned subsidiary of Incannex Healthcare Inc., which is the new ultimate parent company.

Until the Re-domiciliation, Incannex Australia’s ordinary shares were listed on the Australian Securities Exchange (“ASX”) and American Depositary Shares (“ADSs”), each representing 25 ordinary shares of Incannex Australia, traded on Nasdaq. Following completion of the Re-domiciliation, Incannex Australia’s ordinary shares were delisted from the ASX and Incannex Healthcare Inc. assumed Incannex Australia’s listing on Nasdaq.

Pursuant to the Re-domiciliation, holders of Incannex Australia’s ordinary shares received one share of common stock in Incannex Healthcare Inc. for every 100 ordinary shares held in Incannex Australia and holders of ADSs in Incannex Australia received one share of common stock of Incannex Healthcare Inc. for every 4 ADSs held in Incannex Australia.

The issued and outstanding shares of our common stock as shown in this report have been adjusted in the consolidated financial statements to reflect the 100:1 exchange ratio as if it had occurred on July 1, 2022.

Incannex Healthcare Inc. and its subsidiaries are referred to as “the Company” unless the text otherwise requires.

The Company’s fiscal year end is June 30. References to a particular “fiscal year” are to our fiscal year ended June 30 of that calendar year.

The consolidated financial statements of the Company are presented in United States dollars and consist of Incannex Healthcare Inc. and the following wholly-owned subsidiaries:

Subsidiary		Jurisdiction
Incannex Healthcare Limited		Victoria, Australia
Incannex Pty Ltd		Victoria, Australia
Psychennex Pty Ltd		Victoria, Australia
APIRx Pharmaceutical USA, LLC		Delaware
APIRx Pharmaceuticals Holding BV		IJsselstein, Netherlands
Clarion Clinics Group Pty Ltd		Victoria, Australia
Clarion Model Clinic Pty Ltd		Victoria, Australia
Psychennex Licensing and Franchising Pty Ltd		Victoria, Australia

Share-based payments (Details) - Schedule of Restricted Stock Activity - Restricted Stock [Member]	6 Months Ended
	Dec. 31, 2023 $ / shares shares
Schedule of Restricted Stock Activity [Line Items]
Numbers of Shares, Beginning \| shares	62,514
Weighted Average Grant Date Fair Value, Beginning \| $ / shares	$ 149
Numbers of Shares, Granted \| shares	2,316,715
Weighted Average Grant Date Fair Value, Granted \| $ / shares	$ 1,007
Numbers of Shares, Vested \| shares	639,014
Weighted Average Grant Date Fair Value,Vested \| $ / shares	$ 961
Numbers of Shares, Forfeited \| shares	1,000
Weighted Average Grant Date Fair Value, Forfeited \| $ / shares	$ 29
Numbers of Shares, Beginning \| shares	1,739,215
Weighted Average Grant Date Fair Value, Beginning \| $ / shares	$ 1,006

Share-based payments

6 Months Ended

Dec. 31, 2023

Share-based payments [Abstract]

Share-based payments

Note 11 – Share-based payments

	December 31, 2023 $		December 31, 2022 $
	(in thousands)
Research and development		-		-
General and administrative		3,471		1,100
Total share-based compensation expense		3,471		1,100

Restricted stocks

A summary of the changes in the Company’s restricted stock activity for the period ended December 31, 2023, are as follows:

	Numbers of Shares		Weighted Average Grant Date Fair Value $
	(in thousands, expect per share data)
Unvested and Outstanding as of June 30, 2023		62,514		149
Granted		2,316,715		1,007
Vested		639,014		961
Forfeited		1,000		29
Unvested and Outstanding as of December 31, 2023		1,739,215		1,006

Stock options

A summary of the changes in the Company’s stock options activity for the period ended December 31, 2023, are as follows:

	Number of Shares		Weighted Average Exercise Price ($)		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (in thousands) ($)
Outstanding as of June 30, 2023		633,508		24.19		1.35		442
Granted		-		-		-		-

Exercised		-		-		-		-
Cancelled or forfeited		-		-		-		-

Outstanding as of September 30, 2023		633,508		24.19		1.10		442
Granted		-		-		-		-
Exercised		-		-		-		-
Cancelled or forfeited		349,500		14.29		-		720
Outstanding as of December 31, 2023		284,008		36.37		2.04		100
Unvested as of December 31, 2023		47,337		22.23		3.75		125

The aggregate intrinsic value of share options is calculated as the difference between the exercise price of the share options and the fair value of the Company’s shares of common stock for those share options that had exercise prices lower than the fair value of the Company’s shares of common stock.

As of December 31, 2023, there was $411 of unrecognized compensation cost related to unvested share options, which is expected to be recognized over a weighted-average period of 1.08 years.

Share Options Valuation

	December 31, 2023		June 30, 2023
Expected option life (years)		-		1.5
Expected volatility		-		90	%
Risk-free interest rate		-		3.18	%
Expected dividend yield		-		-
Fair value of underlying shares of common stock		-		1.17

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Operating expenses:
Research and development	$ 2,638	$ 1,549	$ 5,247	$ 2,959
Acquisition of in-process research and development				35,347
General and administrative	5,345	2,090	7,629	3,521
Total operating expenses	7,983	3,639	12,876	41,827
Loss from operations	(7,983)	(3,639)	(12,876)	(41,827)
Other income/(expense), net:
R&D tax incentive	2,727	666	6,824	680
Foreign exchange income/(expense)	(5)		(6)
Interest income	20	55	90	81
Total other income/(expense), net	2,742	721	6,908	761
Loss before income tax expense	(5,241)	(2,918)	(5,968)	(41,066)
Income tax expense
Net loss	(5,241)	(2,918)	(5,968)	(41,066)
Other comprehensive income/(loss):
Currency translation adjustment, net of tax	927	3,684	418	(1,827)
Total comprehensive income/(loss)	$ (4,314)	$ 766	$ (5,550)	$ (42,893)
Net loss per share: Basic (in Dollars per share)	$ (0.33)	$ 0.05	$ (0.38)	$ (2.76)
Weighted average number of shares outstanding, basic (in Shares)	15,873,113	15,398,367	15,873,113	14,901,631

Re-domiciliation and Business (Details) - shares	Dec. 31, 2023	Jun. 30, 2023
Re-domiciliation and Business (Details) [Line Items]
Ordinary shares issued	15,873,113	15,873,113
AUSTRALIA \| Minimum [Member]
Re-domiciliation and Business (Details) [Line Items]
Ordinary shares issued	100
AUSTRALIA \| Maximum [Member]
Re-domiciliation and Business (Details) [Line Items]
Ordinary shares issued	1
Incannex Healthcare Limited [Member]
Re-domiciliation and Business (Details) [Line Items]
Ordinary shares issued	25
Incannex Healthcare Limited [Member] \| AUSTRALIA
Re-domiciliation and Business (Details) [Line Items]
Ordinary shares issued	1

Commitments and contingencies

6 Months Ended

Dec. 31, 2023

Commitments and contingencies [Abstarct]

Commitments and contingencies

Note 7 – Commitments and contingencies

The Company records a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company also discloses material contingencies when it believes a loss is not probable but reasonably possible. Accounting for contingencies requires us to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. Although the Company cannot predict with assurance the outcome of any litigation or tax matters, it does not believe there are currently any such actions that, if resolved unfavourably, would have a material impact on the Company’s operating results, financial position or cash flows.

General and Administration Expenses

6 Months Ended

Dec. 31, 2023

General and Administration Expenses [Abstract]

General and Administration expenses

Note 10 – General and Administration expenses

	December 31, 2023 $		December 31, 2022 $
	(in thousands)
Salaries, and other employee benefits		4,825		2,142
Depreciation expense		24		34
Compliance, legal and regulatory		1,573		695
Occupancy expenses		153		35
Advertising and investor relations		705		427
Other administration expenses		349		188
Total general and administration expenses		7,629		3,521

Additional Paid-in Capital (Tables)

6 Months Ended

Dec. 31, 2023

Additional Paidin Capital [Abstract]

Schedule of Additional Paid-in Capital

Additional paid-in capital:

	December 31, 2023 $		December 31, 2022 $
	(in thousands, expect per share data)
Opening balance		116,294		69,075
Options issued to advisors¹		-		477
Options exercised				2
Issues of new options – placement		-		72
Equity instruments issued to management and directors²		3,598		2,150
Share placements³				8,830
Share issued to advisors⁵				2,051
Asset acquisition shares issued⁴				34,171
Issuance costs⁶				(530	)
At December 31, 2023		119,892		116,298

Relates to the amortization of shares and options issued as share-based payments during the current and prior periods.

In December 2022, Incannex Australia raised $8.83 million from a placement of 634,146 ordinary shares to institutional and professional investors in a private placement.

⁴

⁵

In August 2022, Incannex Australia issued 130,902 ordinary shares to Ryba LLC as lead M&A Advisors on the APIRx acquisition.

In December 2022, Incannex Australia paid a commission of $530 to Bell Potter, as placement agent, for its services leading the private placement completed that month.

Prepaid Expenses and Other Current Assets (Tables)

6 Months Ended

Dec. 31, 2023

Prepaid Expenses and Other Current Assets [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

	December 31, 2023 $		June 30, 2023 $
	(in thousands)
Prepayments¹		1,188		686
R&D tax credit recoverable²		5,337		-
GST recoverable		253		191
Total other assets		6,778		877

Prepayments consist of prepaid clinical trial insurances, prepaid R&D expenditure relating to PsiGAD and IHL-675A clinical trials and scientific, marketing, and adverting subscription services.

R&D tax incentive receivable for period ended December 31, 2023 fiscal year ended June 30, 2023.

Share-based payments (Details) $ in Thousands	6 Months Ended
Share-based payments (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Share-based payments [Abstract]
Unrecognized compensation cost	$ 411
Weighted-average period	1 year 29 days

Leases (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Leases [Abstract]
Operating lease liabilities	$ 73	$ 61
Weighted-average remaining lease term	1 year 5 months 23 days	1 year 9 months 14 days
Weighted-average remaining discount rate	9.18%	9.18%

Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2023 USD ($)
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Transaction cost (in Dollars)	$ 2,430
Research and Development Tax Incentive (in Dollars)	5,000
Other income (in Dollars)	$ 5,000
Building [Member] \| Minimum [Member]
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Estimated useful lives	25 years
Building [Member] \| Maximum [Member]
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Estimated useful lives	40 years
Machinery and Equipment [Member] \| Minimum [Member]
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Estimated useful lives	10 years
Machinery and Equipment [Member] \| Maximum [Member]
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Estimated useful lives	15 years
Vehicles [Member] \| Minimum [Member]
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Estimated useful lives	3 years
Vehicles [Member] \| Maximum [Member]
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Estimated useful lives	5 years
Furniture and Fixtures [Member] \| Minimum [Member]
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Estimated useful lives	2 years
Furniture and Fixtures [Member] \| Maximum [Member]
Basis of Presentation and Summary of Significant Accounting Policies [Line Items]
Estimated useful lives	8 years

General and Administration Expenses (Details) - Schedule of General and Administration Expenses - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Schedule of General and Administration Expenses [Line Items]
Total general and administration expenses	$ 5,345	$ 2,090	$ 7,629	$ 3,521
Salaries, and other employee benefits [Member]
Schedule of General and Administration Expenses [Line Items]
Total general and administration expenses			4,825	2,142
Depreciation expense [Member]
Schedule of General and Administration Expenses [Line Items]
Total general and administration expenses			24	34
Compliance, legal and regulatory [Member]
Schedule of General and Administration Expenses [Line Items]
Total general and administration expenses			1,573	695
Occupancy expenses [Member]
Schedule of General and Administration Expenses [Line Items]
Total general and administration expenses			153	35
Advertising and investor relations [Member]
Schedule of General and Administration Expenses [Line Items]
Total general and administration expenses			705	427
Other administration expenses [Member]
Schedule of General and Administration Expenses [Line Items]
Total general and administration expenses			$ 349	$ 188

Property, Plant and Equipment, Net (Tables)

6 Months Ended

Dec. 31, 2023

Property, Plant and Equipment, Net [Abstract]

Schedule of Property, Plant and Equipment, Net

	December 31, 2023 $			June 30, 2023 $
	(in thousands)
Furniture, fittings and equipment		195			157
Assets under construction		412			160
Total property, plant and equipment, gross		607			317
Accumulated depreciation and amortization		(48	)		(23	)
Total property, plant and equipment, net	$	559		$	294

Additional Paid-in Capital (Details) - USD ($)			6 Months Ended
Additional Paid-in Capital (Details) - USD ($)	Dec. 31, 2022	Aug. 31, 2022	Jun. 30, 2023	Dec. 31, 2022
Additional Paid-in Capital (Details) [Line Items]
Share placements (in Dollars)				$ 8,830,000
Issuance costs (in Dollars)				$ 530,000
Private Placement [Member]
Additional Paid-in Capital (Details) [Line Items]
Share placements (in Dollars)	$ 8,830,000
Placements ordinary shares	634,146
Ryba LLC [Member]
Additional Paid-in Capital (Details) [Line Items]
Shares issued		9,000,000
Share issued to advisors		130,902
APIRx Pharmaceuticals [Member]
Additional Paid-in Capital (Details) [Line Items]
Acquisition shares issued		2,181,695
Bell Potter [Member]
Additional Paid-in Capital (Details) [Line Items]
Issuance costs (in Dollars)	$ 530

Stockholder's Equity/Issued Capital (Tables)

6 Months Ended

Dec. 31, 2023

StockholderStockholder's Equity/Issued Capital [Abstract]

Schedule of Consolidated Financial Statements

All references in these consolidated financial statements to the Company’s outstanding common stock, including per share information, have been retrospectively adjusted to reflect this Re-domiciliation.

	For the six months ended December 31,				For the three months ended December 31,
	2023 $		2023 No, of shares		2023 $		2023 No, of shares
	(in thousands, expect per share data)
Opening balance		2		15,873,113		2		15,873,113
Closing balance		2		15,873,113		2		15,873,113

	For the six months ended December 31,				For the three months ended December 31,
	2022 $		2022 No, of shares		2022 $		2022 No, of shares
	(in thousands, expect per share data)
Opening balance		1		12,926,349		2		15,238,946
Issues of new shares – placements¹		-		634,146		-		634,146

Issues of new shares – acquisition²		1		2,181,695		-		-
Issues of new shares – employees and directors		-		-		-		-

Exercise of options		-		21		-		21
Shares in lieu of advisor fees³		-		130,902		-		-
Share issue costs		-		-		-		-
Closing balance		2		15,873,113		2		15,873,113

In December 2022, Incannex Australia raised $8.83 million from a placement of 634,146 ordinary shares to institutional and professional investors in a private placement.

In August 2022, Incannex Australia issued 130,902 ordinary shares to Ryba LLC as lead M&A Advisors on the APIRx acquisition.

Income Tax (Tables)

6 Months Ended

Dec. 31, 2023

Income Tax [Abstarct]

Schedule of Pre-Tax Accounting loss from Operations

The prima facie income tax benefit on pre-tax accounting loss from operations reconciles to the income tax benefit in the financial statements as follows:

	December 31, 2023 $			June 30, 2023 $
	(in thousands)
Accounting loss before tax		(5,805	)		(52,766	)
Income tax benefit at the applicable tax rate of 25%		(1,452	)		(13,192	)
Non-deductible expenses		4,998			39,179
Non-assessable income		(6,619	)		(184	)
Deferred tax assets not recognized		754			627
Income tax benefit		-			-
Unrecognized Deferred Tax Asset
Deferred tax asset not recognized in the financial statements:
Unused tax losses		5,731			4,443
Net unrecognized tax benefit at 25%		6,485			5,070

Trade and Other Payables, Accrued Expenses and Other Current Liabilities (Tables)

6 Months Ended

Dec. 31, 2023

Trade and Other Payables, Accrued Expenses and Other Current Liabilities [Abstract]

Schedule of Trade and Other Payables, Accrued Expenses and Other Current Liabilities

	December 31, 2023 $		June 30, 2023 $
	(in thousands)
Current liabilities
Trade payables		1,952		1,748
Accrued expenses		734		426
Employee leave entitlements		331		263
Total Trade and other payables, accrued expenses and other current liabilities		3,017		2,437

Accounting Policies, by Policy (Policies)

6 Months Ended

Dec. 31, 2023

Basis of Presentation and Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

On November 28, 2023, the Company implemented the transaction to redomicile from Australia to United States and became the parent of Incannex Australia and the wholly owned subsidiaries listed in Note 1. The historical financial statements of Incannex Australia became the historical financial statements of the combined company upon consummation of the Re-domiciliation. As a result, the financial statements included in this report reflect (i) the historical operating results of Incannex Australia and subsidiaries prior to the Re-domiciliation; (ii) the combined results of the Company, Incannex Australia, and subsidiaries following the completion of the Re-domiciliation; and (iii) the Company’s equity structure for all periods presented, including adjusting the issued and outstanding shares of common stock to reflect the 100:1 exchange ratio as if it had occurred on July 1, 2022.

The Company’s consolidated financial statements included in this report have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) and pursuant to the rules and regulations of the SEC. Prior to the Re-domiciliation, Incannex Australia reported its consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”). Following the Re-domiciliation, the Company transitioned to US GAAP and applied US GAAP retrospectively for all prior periods presented.

Reference is frequently made herein to the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”). This is the source of authoritative US GAAP recognized by the FASB to be applied to non-governmental entities.

Unaudited Interim Financial Information

In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of December 31, 2023, and its results of operations for the three months and six months ended December 31, 2023, and 2022, and cash flows for the six months end December 31, 2023, and 2022.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries (the “Group”). Details of all controlled entities are set out in Note 1. All intercompany balances and transactions have been eliminated on consolidation.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Company’s consolidated financial statements and accompanying notes.

The most significant estimates and assumptions in the Company’s consolidated financial statements include the valuation of equity-based instruments issued for other than cash accrued research and development expense, and the research and development tax credit. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ materially from those estimates.

Risks and Uncertainties

The Company is subject to risks and uncertainties common to companies in the biopharmaceutical industry. The Company believes that changes in any of the following areas could have a material adverse effect on future financial position or results of operations: ability to obtain future financing; regulatory approval and market acceptance of, and reimbursement for, product candidates; performance of third-party clinical research organizations and manufacturers upon which the Company relies; protection of the Company’s intellectual property; litigation or claims against the Company based on intellectual property, patent, product, regulatory or other factors; the Company’s ability to attract and retain employees.

There can be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s intellectual property will be obtained or maintained, that any products developed will obtain necessary government regulatory approval or that any approved products will be commercially viable. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company operates in an environment of rapid technological change and substantial competition from other pharmaceutical and biotechnology companies. In addition, the Company is dependent upon the services of its employees, consultants and other third parties.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents. The Company has not experienced any losses in such accounts, and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. As of December 31, 2023 and 2022, all deposit in banks of the Company is held outside of the United States.

Cash and Cash Equivalents

Cash and cash equivalents, which includes cash and deposits held at call with financial institutions with original maturities of three months or less that are readily convertible to known amounts of cash, are carried at cost, which approximates fair value.

Property, Plant and Equipment, Net

Recognition and Measurement

All property, plant and equipment are recognised at historical cost less depreciation.

Depreciation

Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives or, in the case of leasehold improvements and certain leased plant and equipment, the shorter lease term as follows:

●

Buildings 25-40 years

●

Machinery 10-15 years

●

Vehicles 3-5 years

●

Furniture, fittings and equipment 2-8 years

Furniture, fittings and equipment include assets in the form of office fit outs. These assets and other leasehold improvements are recognised at their fair value and depreciated over the shorter of their useful life or the lease term, unless the entity expects to use the assets beyond the lease term.

Impairment of Long-Lived Assets

Long-lived assets consist primarily of property, plant and equipment, net, and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require that an asset group be tested for possible impairment, the Company compares the undiscounted cash flows expected to be generated by the asset group to the carrying amount of the asset group. If the carrying amount of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable.

During the periods ended December 31, 2023 and 2022, the Company has not recorded impairment charges on its long-lived assets.

Leases

The Company determines if an arrangement is, or contains, a lease at inception and then classifies the lease as operating or financing based on the underlying terms and conditions of the contract. Leases with terms greater than one year are initially recognized on the consolidated balance sheets as right-of-use assets and lease liabilities based on the present value of lease payments over the expected lease term. The Company has also elected to not apply the recognition requirement to any leases within its existing classes of assets with a term of 12 months or less and does not include any options to purchase the underlying asset that the Company is reasonably certain to exercise.

Lease expense for minimum lease payments on operating leases is recognized on a straight-line basis over the lease term. Variable lease payments are excluded from the right-of-use assets and operating lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Operating lease expenses are categorized within research and development and general and administrative expenses in the consolidated statements of operations and comprehensive loss. Operating lease cash flows are categorized under net cash used in operating activities in the consolidated statements of cash flows.

As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.

Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of the period and which are unpaid. Due to their short-term nature, they are measured at amortized cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

Segment information

The Company operates and manages its business as one reportable and operating segment, which is the research and development of the use of psychedelic medicine and therapies for the treatment of mental health disorders. The Company’s Chief Executive Officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for the purposes of allocating resources and evaluating financial performance. The Company’s long-lived assets are primarily in Australia.

Research and Development Costs

Research and development costs are expensed as incurred. Research and development consist of salaries, benefits and other personnel related costs including, laboratory supplies, preclinical studies, clinical trials and related clinical manufacturing costs, costs related to manufacturing preparations, fees paid to other entities to conduct certain research and development activities on the Company’s behalf and allocated facility and other related costs.

Nonrefundable advance payments for goods or services that will be used or rendered for future research and development activities are deferred and capitalized as prepaid expenses until the related goods are delivered or services are performed.

The Company records accrued liabilities for estimated costs of research and development activities conducted by third-party service providers, which include the conduct of pre-clinical studies and clinical trials, and contract manufacturing activities. The Company records the estimated costs of research and development activities based upon the estimated amount of services provided but not yet invoiced and includes these costs in trade and other payables on the consolidated balance sheets and within research and development expenses on the consolidated statements of operations and comprehensive loss.

The Company accrues for these costs based on factors such as estimates of the work completed and in accordance with agreements established with its third-party service providers. The Company makes significant judgments and estimates in determining the accrued liabilities balance at the end of each reporting period. As actual costs become known, the Company adjusts its accrued liabilities. The Company has not experienced any material differences between accrued costs and actual costs incurred.

Acquisitions

The Company evaluate acquisitions under the accounting framework in ASC 805, Business Combinations, to determine whether the transaction is a business combination or an asset acquisition. In determining whether an acquisition should be accounted for as a business combination or an asset acquisition, the Company first performs a screen test to determine whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this is the case, then the acquisition is not deemed to be a business and is instead accounted for as an asset acquisition. If this is not the case, then the Company further evaluates whether the acquisition includes, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. If so, the acquisition constitutes a business for accounting purposes.

The Company measures and recognizes asset acquisitions that are not deemed to be business combinations based on the cost to acquire the assets, which includes pre-acquisition direct costs recorded in accrued professional and consulting fees. Goodwill is not recognized in asset acquisitions.

During the year ended June 30, 2023, the Company acquired APIRx Pharmaceutical USA, LLC (“APIRx”). The Company concluded that the acquisition of APIRx did not meet the definition of business under ASC 805, Business Combinations as the acquisition did not have outputs present and a substantive process was not acquired. Therefore, the Company accounted for the transaction as an asset acquisition rather than a business combination.

In accordance with ASC 730-10-25-2(c), intangible assets used in research and developmental activities acquired in an asset acquisition should be expensed at the acquisition date if there is no alternative future use in other R&D projects or otherwise (i.e., if they have no economic value). Additionally, in an asset acquisition, direct transaction costs are accumulated as a component of the consideration transferred and expensed with the acquired IPR&D that has no alternative use.

The Company determined that product candidates pertaining to APIRx had no alternative future use at the time of acquisition and charged $2.43 million, including transaction costs, to acquisition of in-process research and development (IPR&D) expense as of the date of acquisition.

Share-based compensation

The Company accounts for share-based compensation arrangements with employees and non-employees using a fair value method which requires the recognition of compensation expense for costs related to all share-based payments including share options. The fair value method requires the Company to estimate the fair value of share-based payment awards on the date of grant using an option-pricing model. The Company uses either the trinomial pricing or Black-Scholes option-pricing model to estimate the fair value of options granted. Share-based compensation awards are expensed using the graded vesting method over the requisite service period, which is generally the vesting period, for each separately-vesting tranche. The Company has elected a policy of estimating forfeitures at grant date. Option valuation models, including the trinomial pricing and Black-Scholes option-pricing model, require the input of several assumptions. These inputs are subjective and generally require significant analysis and judgment to develop. Refer to Note 12 for a discussion of the relevant assumptions.

Benefit from Research and Development Tax Incentive

Benefit from R&D tax credit consists of the R&D tax credit received in Australia, which is recorded within other income (expense), net. The Company recognizes grants once both of the following conditions are met: (1) the Company is able to comply with the relevant conditions of the grant and (2) the grant is received.

In the three months ended December 31, 2023, due to multiple years of tax incentives being granted and successful lodgement of overseas findings on the Company’s lead assets, the Company changed its estimates for the R&D tax incentive receivable, primarily based on historical experience of claims. The result of this change in estimate resulted in an increase compared to the fiscal year ended June 30, 2023 and the receivable for R&D tax incentive by approximately $5 million. This change also resulted in an increase to other income of approximately $5 million.

Interest income

Interest income is recognized as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Foreign Currency Translation

The Company maintains its consolidated financial statements in its functional currency, which is the Australian Dollar. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at rates of exchange prevailing at the balance sheet dates. Non-monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the date of the transaction. Exchange gains or losses arising from foreign currency transactions are included in other income (expense), net in the consolidated statements of operations and comprehensive loss.

For financial reporting purposes, the consolidated financial statements of the Company have been presented in the U.S. dollar, the reporting currency. The financial statements of entities are translated from their functional currency into the reporting currency as follows: assets and liabilities are translated at the exchange rates at the balance sheet dates, expenses and other income (expense), net are translated at the average exchange rates for the periods presented and stockholders’ equity is translated based on historical exchange rates. Translation adjustments are not included in determining net loss but are included as a foreign exchange adjustment to other comprehensive income, a component of stockholders’ equity.

The following table presents data regarding the dollar exchange rate of relevant currencies:

	December 31, 2023		June 30, 2023
Exchange rate on balance sheet dates
USD: AUD Exchange Rate		0.6840		0.6630
Average exchange rate for the period
USD: AUD Exchange Rate		0.6526		0.6764

Income tax

The Company is subject to Australian and U.S. income tax laws. The Company follows ASC 740, Accounting for Income Taxes, when accounting for income taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for temporary differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized.

For uncertain tax positions that meet a “more likely than not” threshold, the Company recognizes the benefit of uncertain tax positions in the consolidated financial statements. The Company’s practice is to recognize interest and penalties, if any, related to uncertain tax positions in income tax expense in the consolidated statements of operations.

Net loss per share attributable to stockholders

The Company has reported losses since inception and has computed basic net loss per share by dividing net loss by the weighted-average number of common stocks outstanding for the period, without consideration for potentially dilutive securities. The Company computes diluted net loss per share after giving consideration to all potentially dilutive shares, including unvested restricted shares and outstanding options. Because the Company has reported net losses since inception, these potential common stocks have been anti-dilutive and basic and diluted loss per share were the same for all periods presented.

Comprehensive Loss

Comprehensive loss includes net loss as well as other changes in stockholders’ equity that result from transactions and economic events other than those with stockholders. For the six months ended December 31, 2023, and 2022, the only component of accumulated other comprehensive loss is foreign currency translation adjustment.

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Dec. 31, 2023

Basis of Presentation and Summary of Significant Accounting Policies [Abstract]

Schedule of Exchange Rate of Relevant Currencies

The following table presents data regarding the dollar exchange rate of relevant currencies:

	December 31, 2023		June 30, 2023
Exchange rate on balance sheet dates
USD: AUD Exchange Rate		0.6840		0.6630
Average exchange rate for the period
USD: AUD Exchange Rate		0.6526		0.6764

Consolidated Statements of Stockholders’ Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Common stock	Additional paid-in capital	Accumulated deficit	Foreign currency translation reserve	Total
Balance at Jun. 30, 2022	$ 1	$ 69,074	$ (43,401)	$ (963)	$ 24,711
Balance (in Shares) at Jun. 30, 2022	12,926,349
Options exercised
Options issued to advisors		476			476
Option placements
Share-based compensation		1,099			1,099
Share placements		8,830			8,830
Share placements (in Shares)	634,146
Share issued to advisors		2,050			2,050
Share issued to advisors (in Shares)	130,902
Asset acquisition shares issued	$ 1	34,170			34,171
Asset acquisition shares issued (in Shares)	2,181,695
Issuance costs		(530)			(530)
Net loss			(41,066)		(41,066)
Currency translation adjustment, net of tax				(1,827)	(1,827)
Balance at Dec. 31, 2022	$ 2	115,169	(84,467)	(2,790)	27,914
Balance (in Shares) at Dec. 31, 2022	15,873,092
Net loss					(2,918)
Currency translation adjustment, net of tax					3,684
Balance at Dec. 31, 2022	$ 2	115,169	(84,467)	(2,790)	27,914
Balance (in Shares) at Dec. 31, 2022	15,873,092
Options exercised		1			1
Options exercised (in Shares)	21
Options issued to advisors
Option placements		71			71
Share-based compensation		1,049			1,049
Share placements
Share issued to advisors
Asset acquisition shares issued
Issuance costs
Net loss			(7,745)		(7,745)
Currency translation adjustment, net of tax				(465)	(465)
Balance at Jun. 30, 2023	$ 2	116,290	(92,212)	(3,255)	$ 20,825
Balance (in Shares) at Jun. 30, 2023	15,873,113
Options exercised (in Shares)
Share-based compensation		201			$ 201
Net loss			(726)		(726)
Currency translation adjustment, net of tax				(510)	(510)
Balance at Sep. 30, 2023	$ 2	116,491	(92,938)	(3,765)	19,790
Balance (in Shares) at Sep. 30, 2023	15,873,113
Balance at Jun. 30, 2023	$ 2	116,290	(92,212)	(3,255)	20,825
Balance (in Shares) at Jun. 30, 2023	15,873,113
Net loss					(5,968)
Currency translation adjustment, net of tax					418
Balance at Dec. 31, 2023	$ 2	119,887	(98,179)	(2,838)	18,872
Balance (in Shares) at Dec. 31, 2023	15,873,113
Balance at Sep. 30, 2023	$ 2	116,491	(92,938)	(3,765)	$ 19,790
Balance (in Shares) at Sep. 30, 2023	15,873,113
Options exercised (in Shares)
Share-based compensation		3,396			$ 3,396
Net loss			(5,241)		(5,241)
Currency translation adjustment, net of tax				927	927
Balance at Dec. 31, 2023	$ 2	$ 119,887	$ (98,179)	$ (2,838)	$ 18,872
Balance (in Shares) at Dec. 31, 2023	15,873,113

Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Dec. 31, 2023	Jun. 30, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	15,873,113	15,873,113
Common stock, outstanding	12,926,349	12,926,349
Preferred stock, par value per share (in Dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding

Income Tax

6 Months Ended

Dec. 31, 2023

Income Tax [Abstarct]

Income Tax

Note 12 – Income Tax

The prima facie income tax benefit on pre-tax accounting loss from operations reconciles to the income tax benefit in the financial statements as follows:

	December 31, 2023 $			June 30, 2023 $
	(in thousands)
Accounting loss before tax		(5,805	)		(52,766	)
Income tax benefit at the applicable tax rate of 25%		(1,452	)		(13,192	)
Non-deductible expenses		4,998			39,179
Non-assessable income		(6,619	)		(184	)
Deferred tax assets not recognized		754			627
Income tax benefit		-			-
Unrecognized Deferred Tax Asset
Deferred tax asset not recognized in the financial statements:
Unused tax losses		5,731			4,443
Net unrecognized tax benefit at 25%		6,485			5,070

ASC 740 requires that the tax benefit of net operating losses, temporary differences and credit carry forwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is dependent on the Company’s ability to generate sufficient taxable income within the carry forward period. Because of the Company’s recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has provided a valuation allowance. As of December 31, 2023 and 2022, the Company established a valuation allowance against its deferred tax assets due to the uncertainty surrounding the realization of such assets.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
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-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 2
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Stockholder's Equity/Issued Capital

6 Months Ended

Dec. 31, 2023

StockholderStockholder's Equity/Issued Capital [Abstract]

Stockholder's Equity/Issued Capital

Note 8 – Stockholder’s equity/Issued capital

Common stock

The Company has one class of common stock. In connection with the re-domiciliation, the Company’s amended and restated certificate of incorporation became effective, which provides for authorized the issuance of 100,000,000 authorized shares of common stock with a par value of $0.0001 per share, with one vote per share. Holders of common stock are entitled to receive any dividends as may be declared from time to time by the Company’s board of directors.

On November 28, 2023, the Company effected the Re-domiciliation. All references in these consolidated financial statements to the Company’s outstanding common stock, including per share information, have been retrospectively adjusted to reflect this Re-domiciliation.

	For the six months ended December 31,				For the three months ended December 31,
	2023 $		2023 No, of shares		2023 $		2023 No, of shares
	(in thousands, expect per share data)
Opening balance		2		15,873,113		2		15,873,113
Closing balance		2		15,873,113		2		15,873,113

	For the six months ended December 31,				For the three months ended December 31,
	2022 $		2022 No, of shares		2022 $		2022 No, of shares
	(in thousands, expect per share data)
Opening balance		1		12,926,349		2		15,238,946
Issues of new shares – placements¹		-		634,146		-		634,146

Issues of new shares – acquisition²		1		2,181,695		-		-
Issues of new shares – employees and directors		-		-		-		-

Exercise of options		-		21		-		21
Shares in lieu of advisor fees³		-		130,902		-		-
Share issue costs		-		-		-		-
Closing balance		2		15,873,113		2		15,873,113

In December 2022, Incannex Australia raised $8.83 million from a placement of 634,146 ordinary shares to institutional and professional investors in a private placement.

In August 2022, Incannex Australia issued 130,902 ordinary shares to Ryba LLC as lead M&A Advisors on the APIRx acquisition.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
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-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023
Current assets:
Cash and cash equivalents	$ 14,554	$ 22,120
Prepaid expenses and other assets	6,778	877
Total current assets	21,332	22,997
Property, plant and equipment, net	559	294
Operating lease right-of-use assets	468	492
Total assets	22,359	23,783
Current liabilities:
Trade and other payables	1,952	1,748
Accrued expenses and other current liabilities	1,065	689
Operating lease liabilities, current	169	113
Total current liabilities	3,186	2,550
Operating lease liabilities, non-current	301	408
Total liabilities	3,487	2,958
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock, $0.0001 par value – 100,000,000 shares authorized; 15,873,113 and 12,926,349 shares issued and outstanding at December 31, 2023 and June 30, 2023, respectively	2	2
Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized, no shares issued or outstanding at December 31, 2023 and June 30, 2023, respectively
Additional paid-in capital	119,887	116,290
Accumulated deficit	(98,179)	(92,212)
Foreign currency translation reserve	(2,838)	(3,255)
Total stockholders’ equity	18,872	20,825
Total liabilities and stockholders’ equity	$ 22,359	$ 23,783

Additional Paid-in Capital (Details) - Schedule of Additional Paid-in Capital - Incannex Australia [Member] - USD ($)
$ in Thousands

6 Months Ended

Dec. 31, 2023

Jun. 30, 2023

Dec. 31, 2022

Additional Paid-in Capital (Details) - Schedule of Additional Paid-in Capital [Line Items]

Opening balance

$ 116,294

$ 116,298

$ 69,075

Options issued to advisors

^[1]

477

Options exercised

Issues of new options – placement

Equity instruments issued to management and directors

^[2]

3,598

2,150

Share placements

^[3]

8,830

Share issued to advisors

^[4]

2,051

Asset acquisition shares issued

^[5]

34,171

Issuance costs

^[6]

(530)

Ending balance

$ 119,892

$ 116,294

$ 116,298

[1]	In August 2022, Incannex Australia issued 9,000,000 options to Ryba LLC pursuant to the mandate executed between the parties in November 2021. As the transaction between the Company and APIRx was deemed complete in August 2022, the options were issued then.
[2]	Relates to the amortization of shares and options issued as share-based payments during the current and prior periods.
[3]	In December 2022, Incannex Australia raised $8.83 million from a placement of 634,146 ordinary shares to institutional and professional investors in a private placement.
[4]	In August 2022, Incannex Australia issued 130,902 ordinary shares to Ryba LLC as lead M&A Advisors on the APIRx acquisition.
[5]	In August 2022, Incannex Australia completed the acquisition on APIRx Pharmaceuticals via the issuance of 2,181,695 ordinary shares of Incannex Australia to the owners of APIRx in an all–scrip transaction.
[6]	In December 2022, Incannex Australia paid a commission of $530 to Bell Potter, as placement agent, for its services leading the private placement completed that month.

Share-based payments (Details) - Schedule of Weighted-Average Assumptions used Black-Scholes Option Pricing - $ / shares	6 Months Ended	12 Months Ended
	Dec. 31, 2023	Jun. 30, 2023
Schedule of Weighted-Average Assumptions used Black-Scholes Option Pricing [Abstract]
Expected option life (years)		1 year 6 months
Expected volatility		90.00%
Risk-free interest rate		3.18%
Expected dividend yield
Fair value of underlying shares of common stock (in Dollars per share)		$ 1.17

Leases (Details) - Schedule of Future Minimum Lease Payments $ in Thousands	Dec. 31, 2023 USD ($)
Schedule of Future Minimum Lease Payments [Abstract]
June 30, 2024	$ 103
June 30, 2025	214
June 30, 2026	208
June 30, 2027	50
June 30, 2028	34
Total minimum lease payments	609
Less amount representing interest	(139)
Total operating lease liabilities	$ 470

Trade and Other Payables, Accrued Expenses and Other Current Liabilities

6 Months Ended

Dec. 31, 2023

Trade and Other Payables, Accrued Expenses and Other Current Liabilities [Abstract]

Trade and other payables, accrued expenses and other current liabilities

Note 5 – Trade and other payables, accrued expenses and other current liabilities

	December 31, 2023 $		June 30, 2023 $
	(in thousands)
Current liabilities
Trade payables		1,952		1,748
Accrued expenses		734		426
Employee leave entitlements		331		263
Total Trade and other payables, accrued expenses and other current liabilities		3,017		2,437

Trade and other payables are unsecured, non-interest bearing and are normally settled within 30 days. The carrying amounts are a reasonable approximation of fair value.

Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Dec. 31, 2023

Basis of Presentation and Summary of Significant Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

Unaudited Interim Financial Information

Principles of Consolidation

Use of Estimates

Risks and Uncertainties

Concentration of Credit Risk

Cash and Cash Equivalents

Property, Plant and Equipment, Net

Recognition and Measurement

All property, plant and equipment are recognised at historical cost less depreciation.

Depreciation

●

Buildings 25-40 years

●

Machinery 10-15 years

●

Vehicles 3-5 years

●

Furniture, fittings and equipment 2-8 years

Impairment of Long-Lived Assets

During the periods ended December 31, 2023 and 2022, the Company has not recorded impairment charges on its long-lived assets.

Leases

Trade and other payables

Segment information

Research and Development Costs

Acquisitions

Share-based compensation

Benefit from Research and Development Tax Incentive

Interest income

Foreign Currency Translation

The following table presents data regarding the dollar exchange rate of relevant currencies:

	December 31, 2023		June 30, 2023
Exchange rate on balance sheet dates
USD: AUD Exchange Rate		0.6840		0.6630
Average exchange rate for the period
USD: AUD Exchange Rate		0.6526		0.6764

Income tax

Net loss per share attributable to stockholders

Comprehensive Loss

Related Party Transactions

6 Months Ended

Dec. 31, 2023

Related Party Transactions

Note 14 – Related Party Transactions

Transactions between related parties are on commercial terms and conditions, no more favourable than those available to other parties unless otherwise stated.

There were no amounts payable to any related parties as of December 31, 2023 and June 30, 2023.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Leases (Details) - Schedule of Weighted-Average Remaining Lease Term and Discount Rates	Dec. 31, 2023	Jun. 30, 2023
Schedule of Weighted-Average Remaining Lease Term and Discount Rates [Abstract]
Lease term (years)	1 year 5 months 23 days	1 year 9 months 14 days
Discount rate	9.18%	9.18%

Stockholder's Equity/Issued Capital (Details) - USD ($) $ / shares in Units, $ in Thousands			6 Months Ended
	Dec. 31, 2022	Aug. 31, 2022	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Stockholder’s Equity/Issued Capital [Line Items]
Common stock, shares authorized			100,000,000	100,000,000
Common stock shares par value (in Dollars per share)			$ 0.0001	$ 0.0001
Vote per share			one
Amount issued (in Dollars)					$ 8,830
Private Placement [Member]
Stockholder’s Equity/Issued Capital [Line Items]
Amount issued (in Dollars)	$ 8,830
Share issued	634,146
APIRx Pharmaceuticals [Member]
Stockholder’s Equity/Issued Capital [Line Items]
Acquisition shares issued		2,181,695
Ryba LLC [Member]
Stockholder’s Equity/Issued Capital [Line Items]
Share issued to advisors		130,902

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net loss	$ (5,241)	$ (726)	$ (2,918)	$ (5,968)	$ (7,745)	$ (41,066)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization				24		35
Share-based compensation expense				3,471		1,100
Unrealized gain on foreign currency remeasurement						4
Change in operating assets and liabilities:
Prepaid expenses and other current assets				(5,883)		(224)
Trade and other payables				504		(635)
Acquisition of in-process research and development						35,349
Net cash used in operating activities				(7,852)		(5,437)
Cash flows from investing activities:
Purchase of property, plant and equipment				(280)		(113)
Net cash used in investing activities				(280)		(113)
Cash flows from financing activities:
Proceeds from issuance of common stocks, net of issuance costs						8,280
Net cash provided by financing activities						8,280
Effect of exchange rate changes on cash and cash equivalents				567		(500)
Net (decrease)/increase in cash and cash equivalents				(8,132)		2,730
Cash and cash equivalents at beginning of period		$ 22,120		22,120	28,065	25,835
Cash and cash equivalents at end of period	$ 14,555		$ 28,065	$ 14,555	$ 22,120	$ 28,065

General and Administration Expenses (Tables)

6 Months Ended

Dec. 31, 2023

General and Administration Expenses [Abstract]

Schedule of General and Administration Expenses

	December 31, 2023 $		December 31, 2022 $
	(in thousands)
Salaries, and other employee benefits		4,825		2,142
Depreciation expense		24		34
Compliance, legal and regulatory		1,573		695
Occupancy expenses		153		35
Advertising and investor relations		705		427
Other administration expenses		349		188
Total general and administration expenses		7,629		3,521

Income Tax (Details) - Schedule of Pre-Tax Accounting loss from Operations (Parentheticals)	6 Months Ended	12 Months Ended
	Dec. 31, 2023	Jun. 30, 2023
Schedule of Pre-Tax Accounting loss from Operations [Abstract]
Income tax rate	25.00%	25.00%
unrecognized tax rate	25.00%	25.00%

Loss Per Share

6 Months Ended

Dec. 31, 2023

Loss Per Share [Abstract]

Loss per share

Note 13 – Loss per share

All share and earnings per share amounts presented below reflect the impact of the Re-domiciliation as if it had taken effect on July 1, 2022.

Basic and diluted net loss per share attributable to stockholders was calculated as follows (in thousands, except share and per share amounts):

	December 31, 2023 $		December 31, 2022 $
Basic loss per share - cents per share		37.60		275.58
Basic loss per share		0.38		2.76
The loss and weighted average number of common stocks used in the calculation of basic loss per share is as follows:
Total comprehensive loss for the year		5,968		41,066
- Weighted average number of common stocks (number)		15,873,113		14,901,631

The Company notes that the diluted loss per share is the same as basic loss per share.

Income Tax (Details) - Schedule of Pre-Tax Accounting loss from Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023
Schedule of Pre-Tax Accounting loss from Operations [Abstract]
Accounting loss before tax			$ (5,805)		$ (52,766)
Income tax benefit at the applicable tax rate			(1,452)		(13,192)
Non-deductible expenses			4,998		39,179
Non-assessable income			(6,619)		(184)
Deferred tax assets not recognized			754		627
Income tax benefit
Unused tax losses			5,731		4,443
Net unrecognized tax benefit	$ 6,485		$ 6,485		$ 5,070

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of Exchange Rate of Relevant Currencies	Dec. 31, 2023	Jun. 30, 2023
Exchange rate [Member]
Schedule of Exchange Rate of Relevant Currencies [Line Items]
Exchange rate	0.684	0.663
Average exchange rate [Member]
Schedule of Exchange Rate of Relevant Currencies [Line Items]
Exchange rate	0.6526	0.6764

Re-domiciliation and Business (Details) - Schedule of Consolidated Financial Statements	6 Months Ended
	Dec. 31, 2023
Incannex Healthcare Limited [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Subsidiary	Victoria, Australia
Incannex Pty Ltd [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Subsidiary	Victoria, Australia
Psychennex Pty Ltd [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Subsidiary	Victoria, Australia
APIRx Pharmaceutical USA, LLC [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Subsidiary	Delaware
APIRx Pharmaceuticals Holding BV [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Subsidiary	IJsselstein, Netherlands
Clarion Clinics Group Pty Ltd [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Subsidiary	Victoria, Australia
Clarion Model Clinic Pty Ltd [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Subsidiary	Victoria, Australia
Psychennex Licensing and Franchising Pty Ltd [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Subsidiary	Victoria, Australia

Share-based payments (Details) - Schedule of Share-Based Payments - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Schedule of Share Based Payments [Line Items]
Share-based compensation expense	$ 3,471	$ 1,100
Research and development [Member]
Schedule of Share Based Payments [Line Items]
Share-based compensation expense
General and administrative [Member]
Schedule of Share Based Payments [Line Items]
Share-based compensation expense	$ 3,471	$ 1,100

Loss Per Share (Tables)

6 Months Ended

Dec. 31, 2023

Loss Per Share [Abstract]

Schedule of Basic and Diluted Net Loss Per Share Attributable to Stockholders

Basic and diluted net loss per share attributable to stockholders was calculated as follows (in thousands, except share and per share amounts):

	December 31, 2023 $		December 31, 2022 $
Basic loss per share - cents per share		37.60		275.58
Basic loss per share		0.38		2.76
The loss and weighted average number of common stocks used in the calculation of basic loss per share is as follows:
Total comprehensive loss for the year		5,968		41,066
- Weighted average number of common stocks (number)		15,873,113		14,901,631

Leases (Details) - Schedule of Lease Costs - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2023	Jun. 30, 2023
Schedule of Lease Costs [Abstract]
Operating lease cost	$ 79	$ 66