Full Press Release Details
Incannex Healthcare Limited
Preliminary Final Report
For the year ended 30 June 2022
Information for ASX under listing rule
| Reporting Period: | 30 June 2022 |
| Comparative Period: | 30 June 2021 |
The financial statements contained in the Appendix 4E are based on
the accounts which are in the process of being audited.
Results for announcement to the market
| 30-Jun-22 | 30-Jun-21 | Amount change | Percentage change | |||||||||||||
| $ | $ | $ | % | |||||||||||||
| Revenues from ordinary activities | - | 1,897,596 | (1,897,596 | ) | nmf |
| 30-Jun-22 | 30-Jun-21 | Amount change | Percentage change | |||||||||||||
| $ | $ | $ | % | |||||||||||||
| Loss from ordinary activities after tax | (14,903,909 | ) | (11,372,799 | ) | (3,531,110 | ) | 31 |
Net loss for the year
| 30-Jun-22 | 30-Jun-21 | Amount change | Percentage change | |||||||||||||
| $ | $ | $ | % | |||||||||||||
| Loss from ordinary activities after tax | (14,903,909 | ) | (11,372,799 | ) | (3,531,110 | ) | 31 |
dividends have been paid, declared or proposed in respect of the year ended 30 June 2022 (2021: Nil).
Results for the year
to the attached financial statements and commentary of results at item 14.
Statement of profit and loss and other comprehensive income
to attached financial statements.
Statement of financial position
to attached financial statements.
Statement of changes in equity
to attached financial statements.
Statement of cash flows
to attached financial statements.
Details of dividends and distribution payments
Dividend and distribution reinvestment
Net tangible asset per security
| Net tangible asset per ordinary security | 30-Jun-22 | 30-Jun-21 | ||||||
| Net tangible assets | 35,869,075 | 8,573,746 | ||||||
| Number of shares on issue at reporting date | 1,292,334,028 | 1,068,411,224 | ||||||
| Net tangible asset per ordinary security | 2.78 cents | 0.80 cents |
The consolidated financial
statements include the financial statements of Incannex Healthcare Limited ( IHL') and its wholly owned subsidiaries Incannex
Pty Ltd ( IXPL') and Psychennex Pty Ltd ( PXPL'). IXPL is incorporated in Australia and IHL owns 100% of the issued
ordinary shares in IXPL (2021: 100%). PXPL is incorporated in Australia and IHL owns 100% of the issued ordinary shares in PXPL (2021:
Joint ventures and associates
Commentary on results
Incannex Healthcare Limited ("Incannex") was
incorporated in Australia in April 2001. Incannex listed its ordinary shares on the ASX under the symbol "IHL" in November
2016 and, in the form of American Depositary Shares under the symbol "IXHL" on Nasdaq in February 2022.
Incannex concluded FY2022 with a strong cash balance at
30 June 2022 of $37.5 million, versus $9.1 million at 30 June 2021. Our total assets were $37.9 million, compared to $9.3 million at 30
June 2021. During the year we deployed $5.4 million to move forward the company's pipeline of clinical assets, representing over
a third of our total expenditure for the year.
During the financial year, we have been conducting research
and development for synthetic cannabinoid pharmaceutical products and psychedelic medicine therapies for treatment of a range of indications.
To facilitate this goal, we completed shareholder loyalty option issue to raise A$23.6M for working capital and development activities
associated with our aims.
Our mission is to create pharmaceutical drugs and therapies
for patients that we believe have unmet, or under met, medical needs. We aim to be recognized as a leading specialty drug development
company at the forefront of innovation, committed to restoring health and transforming the lives of patients through the development of
novel pharmaceutical products and treatments.
We are developing targeted fixed-dose combinations containing
cannabinoids and approved generic drugs, and psychedelic agents, applying proprietary insights to create long term value for our patients
and shareholders. In particular, we are developing three unique pharmaceutical compositions to target five indications: obstructive sleep
apnea ("OSA"), traumatic brain injury ("TBI")/concussion, rheumatoid arthritis ("RA"), inflammatory
bowel disease ("IBD") and inflammatory lung conditions ("ARDS", "COPD", Asthma, Bronchitis). We are
also developing a treatment for generalized anxiety disorder ("GAD") utilizing psilocybin combined with innovative psychotherapy
methods. Each indication represents a major global market that currently has either no, or limited, existing registered pharmacotherapy
(drug) treatments available to the public.
To protect our investment in each of these development
programs we continue to implement strong patent filing strategies as we develop our drug candidates in conjunction with our medical and
scientific advisory board. The novelty and inventiveness of our cannabinoid products and methods to treat the target indications has been
confirmed in international search reports on our filed PCT applications.
We are pursuing registration and marketing approval from
the U.S. Food and Drug Administration ("FDA") for each product and therapy under development. As each of our drug candidates
target regulatory approval from FDA, safety and efficacy must be demonstrated using robust data from in-human clinical trials. Clinical
development is an iterative process of clinical trials of increasing size, initially focusing on safety, with efficacy becoming an increasing
goal as the program progresses. However, our strategy of combining cannabinoids with FDA approved generic drugs allows us to rely on historic
or published data to address some of the key clinical development questions. This permits us to omit or combine clinical studies that
would usually be required for approval and registration, potentially hastening our timeline to product commercialization. We aim to open
investigational new drug (IND) applications for each of our development programs.
On 5 August 2022, the Company completed the acquisition
on APIRx Pharmaceuticals. The acquisition was completed by an all-scrip transaction by issuing 218,169,497 IHL ordinary shares to the
stakeholders of APIRx. APIRx has 22 clinical and pre-clinical research and development projects utilizing proprietary technology, underpinned
by 19 granted and 23 pending patents. We believe that the acquisition will allow Incannex to benefit from the synergies that can be derived
from the integration of APIRx's assets, as well as offering us distinct development opportunities with significant economic potential.
The financial statements contained in the Appendix 4E are
based on the accounts which are in the process of being audited.
The following financial report included in this Appendix
4E does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide
as full an understanding of the financial performance, financial position and operating, financing and investing activities of the consolidated
entity as the full financial report. The financial report should be read in conjunction with any public announcements made by Incannex
Healthcare Limited in accordance with the continuous disclosure obligations of the ASX Listing Rules.
The accounting policies applied are the same as those noted
in the most recent interim financial report and the previous annual report.
Melbourne, Victoria, 31 August 2022
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2022
| Consolidated | |||||||||||
| Notes | 30 June 2022 | 30 June 2021 1 (restated) | |||||||||
| $ | $ | ||||||||||
| Revenue | 1 | - | 1,897,596 | ||||||||
| Other income | 1 | 788,654 | 75,748 | ||||||||
| Total revenue and other income | 788,654 | 1,973,344 | |||||||||
| Product costs | (6,338 | ) | (911,969 | ) | |||||||
| Administration expense | (280,969 | ) | (99,094 | ) | |||||||
| Advertising and investor relations | (2,746,226 | ) | (4,345,874 | ) | |||||||
| Bad debt expense | (134,626 | ) | - | ||||||||
| Research and development costs | (5,371,821 | ) | (4,749,514 | ) | |||||||
| Compliance, legal and regulatory | (3,559,511 | ) | (1,227,244 | ) | |||||||
| Share based payments | 11 | (1,464,550 | ) | (600,043 | ) | ||||||
| Occupancy expenses | (112,341 | ) | (115,836 | ) | |||||||
| Salaries and employee benefit expense | (2,016,181 | ) | (1,296,569 | ) | |||||||
| Total expenses | (15,692,563 | ) | (13,346,143 | ) | |||||||
| Loss before tax | (14,903,909 | ) | (11,372,799 | ) | |||||||
| Income tax benefit | 3 | - | - | ||||||||
| Loss after tax | (14,903,909 | ) | (11,372,799 | ) | |||||||
| Total comprehensive loss for the year | (14,903,909 | ) | (11,372,799 | ) | |||||||
| Earnings per share | 4 | ||||||||||
| Basic loss per share (cents per share) | (1.25 | ) | (1.16 | ) | |||||||
| Diluted loss per share (cents per share) | (1.25 | ) | (1.16 | ) |
The accompanying notes form part of these financial
CONDENSED STATEMENT OF FINANCIAL POSITION
| Consolidated | |||||||||||
| Notes | 30 June 2022 | 30 June 2021 1 (restated) | |||||||||
| $ | $ | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | 6 | 37,500,931 | 9,123,617 | ||||||||
| Trade and other receivables | 7 | 294,717 | 169,088 | ||||||||
| Other assets | 8 | 83,960 | 36,090 | ||||||||
| Total current assets | 37,879,608 | 9,328,795 | |||||||||
| Total assets | 37,879,608 | 9,328,795 | |||||||||
| Liabilities | |||||||||||
| Current liabilities | |||||||||||
| Trade and other payables | 9 | 2,010,533 | 755,049 | ||||||||
| Total current liabilities | 2,010,533 | 755,049 | |||||||||
| Total liabilities | 2,010,533 | 755,049 | |||||||||
| Net assets | 35,869,075 | 8,573,746 | |||||||||
| Equity | |||||||||||
| Issued capital | 10 | 86,586,794 | 45,852,107 | ||||||||
| Reserves | 11 | 8,077,191 | 6,612,641 | ||||||||
| Accumulated losses | (58,794,910 | ) | (43,891,002 | ) | |||||||
| Net equity | 35,869,075 | 8,573,746 |
The accompanying notes form part of these financial
CONDENSED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2022
| Consolidated | Issued Capital | Equity Reserve | Accumulated Losses | Total | ||||||||||||
| $ | $ | $ | $ | |||||||||||||
| Balance at 30 June 2020 | 34,192,043 | 1,490,588 | (32,518,203 | ) | 3,164,428 | |||||||||||
| Options exercised | 12,498,706 | - | - | 12,498,706 | ||||||||||||
| Options issued to advisors | - | 3,781,344 | - | 3,781,344 | ||||||||||||
| Share based payments | - | 600,043 | - | 600,043 | ||||||||||||
| Shares issue costs | (838,642 | ) | 740,666 | - | (97,976 | ) | ||||||||||
| Comprehensive loss for the year | - | - | (11,372,799 | ) | (11,372,799 | ) | ||||||||||
| Balance at 30 June 2021 1 (restated) | 45,852,107 | 6,612,641 | (43,891,002 | ) | 8,573,746 | |||||||||||
| Options exercised | 40,274,242 | - | - | 40,274,242 | ||||||||||||
| Options issued to advisors | - | - | - | - | ||||||||||||
| Share based payments | - | 1,464,550 | - | 1,464,550 | ||||||||||||
| Share placements | 400,000 | - | - | 400,000 | ||||||||||||
| Shares issued to advisors | 450,000 | - | - | 450,000 | ||||||||||||
| Shares issue costs | (389,555 | ) | - | - | (389,555 | ) | ||||||||||
| Comprehensive loss for the year | - | - | (14,903,909 | ) | (14,903,909 | ) | ||||||||||
| Balance at 30 June 2022 | 86,586,794 | 8,077,191 | (58,794,910 | ) | 35,869,075 |
The accompanying notes form part of these financial
CONDENSED STATEMENT OF CASH FLOWS
For the year ended 30 June 2022
| Consolidated | |||||||||||
| Notes | 2022 | 2021 1 (restated) | |||||||||
| $ | $ | ||||||||||
| Cash flows from operating activities | |||||||||||
| Receipts from customers | - | 1,974,010 | |||||||||
| Receipts from other income | 782,383 | 82,807 | |||||||||
| Payments to suppliers and employees | (13,596,027 | ) | (8,969,276 | ) | |||||||
| Interest received and other income | 6,271 | 2,679 | |||||||||
| Net cash (used in) operating activities | 6 | (12,807,373 | ) | (6,909,780 | ) | ||||||
| Cash flows from investing activities | |||||||||||
| Proceeds from disposal of subsidiary | - | 29,277 | |||||||||
| Proceeds from disposal of property, plant and equipment | - | - | |||||||||
| Net cash from investing activities | - | 29,277 | |||||||||
| Cash flows from financing activities | |||||||||||
| Proceeds from shares issued (net of costs) | 41,184,687 | 12,400,730 | |||||||||
| Net cash from financing activities | 41,184,687 | 12,400,730 | |||||||||
| Net increase in cash and cash equivalents | 28,377,314 | 5,520,227 | |||||||||
| Cash and cash equivalents at beginning of the year | 9,123,617 | 3,603,390 | |||||||||
| Effect of exchange rate fluctuations on cash held | (9,768 | ) | - | ||||||||
| Cash and cash equivalents at end of the year | 6 | 37,500,932 | 9,123,617 |
The accompanying notes form part of these financial
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022