Document And Entity Information
Document And Entity Information | 12 Months Ended |
Jun. 30, 2022 shares | |
Document Information Line Items | |
Entity Registrant Name | Incannex Healthcare Limited |
Trading Symbol | IXHL |
Document Type | 20-F |
Current Fiscal Year End Date | --06-30 |
Entity Common Stock, Shares Outstanding | 1,292,334,028 |
Amendment Flag | false |
Entity Central Index Key | 0001873875 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Jun. 30, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-41106 |
Entity Incorporation, State or Country Code | C3 |
Entity Address, Address Line One | Suite 105 |
Entity Address, Address Line Two | 8 Century CircuitNorwest |
Entity Address, Postal Zip Code | 2153 |
Entity Address, City or Town | NSW |
Entity Address, Country | AU |
Title of 12(b) Security | Ordinary Shares, as represented by American Depositary Shares |
Security Exchange Name | NASDAQ |
Security Reporting Obligation | 15(d) |
Entity Interactive Data Current | Yes |
Document Accounting Standard | International Financial Reporting Standards |
Auditor Firm ID | 6622 |
Auditor Name | WithumSmith+Brown, PC |
Auditor Location | New York, New York |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | Suite 105 |
Entity Address, Address Line Two | 8 Century CircuitNorwest |
Entity Address, Postal Zip Code | 2153 |
Entity Address, City or Town | NSW |
Entity Address, Country | AU |
Contact Personnel Name | Joel Latham |
City Area Code | 61 |
Local Phone Number | 425 703 805 |
Contact Personnel Email Address | joel@incannex.com.au |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Profit or loss [abstract] | |||
Revenue | $ 1,897,596 | $ 604,884 | |
Other income | 788,654 | 75,748 | 217,170 |
Total revenue and other income | 788,654 | 1,973,344 | 822,054 |
Product costs | (6,338) | (911,969) | (450,345) |
Administration expense | (280,969) | (99,094) | (457,673) |
Advertising and investor relations | (2,746,226) | (4,345,874) | (406,225) |
Bad debt expense | (134,626) | ||
Research and development costs | (5,371,821) | (4,749,514) | (2,110,639) |
Compliance, legal and regulatory | (3,559,511) | (1,227,244) | (235,163) |
Share based payments | (1,464,550) | (600,043) | (565,448) |
Occupancy expenses | (112,341) | (115,836) | (2,085) |
Salaries and employee benefit expense | (2,016,181) | (1,296,569) | (523,760) |
Total expenses | (15,692,563) | (13,346,143) | (4,751,338) |
Loss before tax | (14,903,909) | (11,372,799) | (3,929,284) |
Income tax benefit | |||
Loss after tax | (14,903,909) | (11,372,799) | (3,929,284) |
Loss on discontinued operations, net of tax | (768,352) | ||
Other comprehensive income | |||
Total comprehensive loss for the year | $ (14,903,909) | $ (11,372,799) | $ (4,697,636) |
Earnings per share | |||
Basic loss per share (cents per share) (in Dollars per share) | $ (1.25) | $ (1.16) | $ (0.69) |
Diluted loss per share (cents per share) (in Dollars per share) | $ (1.25) | $ (1.16) | $ (0.57) |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Current assets | |||
Cash and cash equivalents | $ 37,500,931 | $ 9,123,617 | $ 3,603,390 |
Trade and other receivables | 294,717 | 169,088 | 413,268 |
Other assets | 83,960 | 36,090 | 36,262 |
Inventory | 183,159 | ||
Total current assets | 37,879,608 | 9,328,795 | 4,236,079 |
Total assets | 37,879,608 | 9,328,795 | 4,236,079 |
Current liabilities | |||
Trade and other payables | 2,010,533 | 755,049 | 955,006 |
Other liabilities | 116,645 | ||
Total current liabilities | 2,010,533 | 755,049 | 1,071,651 |
Total liabilities | 2,010,533 | 755,049 | 1,071,651 |
Net assets | 35,869,075 | 8,573,746 | 3,164,428 |
Equity | |||
Issued capital | 86,586,794 | 45,852,107 | 34,192,043 |
Reserves | 8,077,191 | 6,612,641 | 1,490,588 |
Accumulated losses | (58,794,910) | (43,891,002) | (32,518,203) |
Net equity | $ 35,869,075 | $ 8,573,746 | $ 3,164,428 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) | Issued Capital | Equity Reserve | Accumulated Losses | Reserves | Deficit | Total |
Balance at Jun. 30, 2019 | $ 26,951,744 | $ 451,643 | $ (27,820,567) | $ (417,180) | ||
Balance (in Shares) at Jun. 30, 2019 | 581,897,040 | |||||
Options exercised | $ 1,077,093 | 1,077,093 | ||||
Options exercised (in Shares) | 34,427,321 | |||||
Options issued to advisors | 449,093 | 449,093 | ||||
Share based payments | 589,852 | 589,852 | ||||
Shares issued | $ 7,105,354 | $ 7,105,354 | ||||
Shares issued (in Shares) | 132,330,128 | |||||
Shares issue costs (in Shares) | (942,148) | (942,148) | ||||
Comprehensive loss for the year | $ (4,697,636) | $ (4,697,636) | ||||
Balance at Jun. 30, 2020 | $ 34,192,043 | $ 1,490,588 | $ (32,518,203) | 1,490,588 | (32,518,203) | $ 3,164,428 |
Balance (in Shares) at Jun. 30, 2020 | 748,654,489 | 5,750,000 | ||||
Options exercised | $ 12,498,706 | $ 12,498,706 | ||||
Options exercised (in Shares) | 286,500,523 | |||||
Options issued to advisors | 3,781,344 | 3,781,344 | 3,781,344 | |||
Share based payments | $ 600,043 | 600,043 | 600,043 | |||
Shares issued | ||||||
Shares issued (in Shares) | 33,256,212 | |||||
Shares issue costs (in Shares) | (838,642) | 740,666 | 740,666 | (97,976) | ||
Comprehensive loss for the year | $ (11,372,799) | $ (11,372,799) | $ (11,372,799) | |||
Balance at Jun. 30, 2021 | $ 45,852,107 | 6,612,641 | (43,891,002) | $ 6,612,641 | $ (43,891,002) | $ 8,573,746 |
Balance (in Shares) at Jun. 30, 2021 | 1,068,411,224 | 2,952,619 | ||||
Options exercised | $ 40,274,242 | $ 40,274,242 | ||||
Share placements | 400,000 | 400,000 | ||||
Shares issued to advisors | 450,000 | 450,000 | ||||
Share based payments | $ 1,464,550 | $ 1,464,550 | ||||
Shares issue costs (in Shares) | (389,555) | (389,555) | ||||
Comprehensive loss for the year | $ (14,903,909) | $ (14,903,909) | ||||
Balance at Jun. 30, 2022 | $ 86,586,794 | $ 8,077,191 | $ (58,794,910) | $ 35,869,075 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | |||
Receipts from customers | $ 1,974,010 | $ 1,172,084 | |
Receipts from other income | 782,383 | 82,807 | 217,170 |
Payments to suppliers and employees | (13,596,027) | (8,969,276) | (5,299,667) |
Interest received and other income | 6,271 | 2,679 | 3,079 |
Net cash (used in) operating activities | (12,807,373) | (6,909,780) | (3,907,334) |
Cash flows from investing activities | |||
Proceeds from disposal of subsidiary | 29,277 | ||
Proceeds from disposal of property, plant and equipment | 13,000 | ||
Net cash from investing activities | 29,277 | 13,000 | |
Cash flows from financing activities | |||
Proceeds from shares issued (net of costs) | 41,184,687 | 12,400,730 | 7,469,392 |
Debt repaid | (65,000) | ||
Net cash from financing activities | 41,184,687 | 12,400,730 | 7,404,392 |
Net increase in cash and cash equivalents | 28,377,314 | 5,520,227 | 3,510,058 |
Cash and cash equivalents at beginning of the year | 9,123,617 | 3,603,390 | 93,332 |
Effect of exchange rate fluctuations on cash held | |||
Cash and cash equivalents at end of the year | $ 37,500,931 | $ 9,123,617 | $ 3,603,390 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of Significant Accounting Policies Text Block Abstract | ||
Significant accounting policies | 1. Significant accounting policies The principal accounting policies adopted in the preparation of the consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. Nature of Operations Incannex Healthcare Limited (the “Company”) and its consolidated subsidiaries (collectively, the “Group”) is a clinical stage pharmaceutical development company that is developing unique medicinal cannabis pharmaceutical products and psychedelic medicine therapies. The Company’s common shares trade on the Australian Securities Exchange (“ASX”). The Company’s registered office is at Suite 15, Level 12, 401 Docklands Drive, Docklands 3008, Victoria, Australia. For the fiscal year ended 30 June 2022, the Group incurred a total comprehensive loss after income tax of $14.9 million and had net cash outflows from operations of $12.8 million. The Group held total cash of $37.5 million as of 30 June 2022. New or amended Accounting Standards and Interpretations adopted The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the International Accounting Standards Board (‘IASB’) that are mandatory for the current reporting periods. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Historical cost convention The consolidated financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income and derivative financial instruments. Critical accounting estimates The preparation of the consolidated financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 2. Comparatives Where necessary, comparative information has been reclassified and repositioned for consistency with current year disclosures. Statement of compliance These consolidated financial statements were authorised for issue by the Board of Directors in October 2022. The consolidated financial statements comply with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). Parent entity information In accordance with IFRS 10 Consolidated Financial Statements Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Company as at 30 June 2022 and 2021 and the results of all subsidiaries for the years then ended. Incannex Healthcare Limited and its subsidiaries together are referred to in these consolidated financial statements as the ‘Group’. Details of all controlled entities are set out in Note 19. Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Intercompany transactions between entities in the Group are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Where the Group loses control over a subsidiary, it derecognizes the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognized in equity. The Group recognizes the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. Operating segments Operating segments are presented at note 4 using the ‘management approach’, where the information presented is on the same basis as the internal reports provided to the Chief Executive Officer. The Chief Executive Officer is responsible for the allocation of resources to operating segments and assessing their performance. Foreign currency translation The consolidated financial statements are presented in Australian dollars, which is the Company’s functional and presentation currency. Foreign currency transactions Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. Revenue recognition The Company recognizes revenue to depict the transfer of goods and services to clients in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services by applying the following steps: ● Identify the contract with a client; ● Identify the performance obligations in the contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations; and ● Recognize revenue when, or as, the Company satisfies a performance obligation. Revenue may be earned over time as the performance obligations are satisfied or at a point in time which is when the entity has earned a right to payment, the customer has possession of the asset and the related significant risks and rewards of ownership, and the customer has accepted the asset. The Company’s arrangements with clients can include multiple performance obligations. When contracts involve various performance obligations, the Company evaluates whether each performance obligation is distinct and should be accounted for as a separate unit of accounting under IFRS 15, Revenue from Contracts with Customers. The Company determines the standalone selling price by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include discounting practices, the size and volume of our transactions, our marketing strategy, historical sales, and contract prices. The determination of standalone selling prices is made through consultation with and approval by management, taking into consideration our go-to-market strategy. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes in relative standalone selling prices. The Company disaggregates revenue from contracts with customers based on the categories that most closely depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. During the years ended 30 June 2022 and 2021, the Company recognized revenue from only one such category, being cannabinoid oils sales. The Company receives payment from its clients after invoicing within the normal 28-day commercial terms. If a client is specifically identified as a credit risk, recognition of revenue is stopped except to the extent of fees that have already been collected. Other income Other income is recognized when it is received or when the right to receive it is established. Other income primarily consists of grant income and interest income. Interest income Interest revenue 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. Income tax The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognized for prior reporting years, where applicable. Deferred tax assets and liabilities are recognized for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: ● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or ● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled, and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognized for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The carrying amount of recognized and unrecognized deferred tax assets are reviewed at each reporting date. Deferred tax assets recognized are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognized deferred tax assets are recognized to the extent that it is probable that there are future taxable profits available to recover the asset. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously. Government grants Income from government grants is recognized only when the Company has reasonable assurance that the grants will be received, and the conditions of the grants will be complied with. Income from Government grants is recognized on a systematic basis over the periods in which the Company recognizes as expenses the related costs for which the grants are intended to compensate. Government grants relate to Australian Federal Government’s COVID-19 support package of a “Cash Flow Boost” for eligible organisations, supporting small and medium sized organisations. Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group’s normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when: it is either expected to be settled in the Group’s normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non-current. Cash Cash and deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Trade and other receivables Trade receivables are initially recognized at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are due for settlement within 30 days. The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue. Other receivables are recognized at amortised cost, less any allowance for expected credit losses. Other financial assets Other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided. Financial assets are derecognized when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all a financial asset, its carrying value is written off. Intangibles Research and development Research costs are expensed in the period in which they are incurred. Development costs are capitalised when it is probable that the project will be a success considering its commercial and technical feasibility; the Group is able to use or sell the asset; the Group has sufficient resources and intent to complete the development; and its costs can be measured reliably. Capitalised development costs are amortised on a straight-line basis over the period of their expected benefit, being their finite life of 10 years. The Company has not capitalised any development costs for the years ended June 30, 2022 and 2021. Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial years and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. Provisions Provisions are recognized when the Group has a present (legal or constructive) obligation as a result of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognized as a finance cost. Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled. Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Retirement benefit obligations All employees of the Group are entitled to superannuation contributions in accordance with Australian law. Contributions to employees’ nominated superannuation plans are expensed in the period in which they are incurred. Share-based payments Equity-settled compensation benefits are provided to employees. Equity-settled transactions are awards of shares, performance rights or options over shares, that are provided to employees in exchange for the rendering of services. The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to receive payment. Inputs into the Black-Scholes option pricing models used to calculate fair value are classified as level three inputs under the fair value hierarchy of IFRS 13. No account is taken of any other vesting conditions. The cost of equity-settled transactions are recognized as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognized in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognized in previous periods. Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied. If equity-settled awards are modified, as a minimum an expense is recognized as if the modification has not been made. An additional expense is recognized, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification. If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the vesting period, any remaining expense for the award is recognized over the remaining vesting period, unless the award is forfeited. If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognized immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification. Fair value measurement When an asset, liability or equity instrument, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or an equity instrument or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset, liability or equity instrument, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Assets, liabilities and equity instruments measured at fair value are classified into three levels, using a fair value hierarchy that reflects the signi ficance of the inputs used in making the measurements. For assets and liabilities measured at fair value after initial recognition, classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are described as follows: ● Level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities; ● Level 2 — valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and ● Level 3 — valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data. Issued capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Dividends Dividends are recognized when declared during the financial years. Loss per share Basic loss per share Basic loss per share is calculated by dividing the profit attributable to the owners of Incannex Healthcare Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial years, adjusted for bonus elements in ordinary shares issued during the financial years. These values are set out in Note 6. Diluted loss per share Diluted loss per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. These values are set out in Note 6. Goods and Services Tax (‘GST’) and other similar taxes Revenues, expenses and assets are recognized net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognized as part of the cost of the acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from the tax authority is included in other receivables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flow. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority. New Accounting Standards not yet adopted International Financial Reporting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting periods ended 30 June 2022 and 2021. | 1. Significant accounting policies The principal accounting policies adopted in the preparation of the consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. Nature of Operations Incannex Healthcare Limited (the “Company”) and its consolidated subsidiaries (collectively, the “Group”) is a clinical stage pharmaceutical development company that is developing unique medicinal cannabis pharmaceutical products and psychedelic medicine therapies. The Company’s common shares trade on the Australian Securities Exchange (“ASX”). The Company’s registered office is at Suite 105, 8 Century Circuit, Norwest 2153, NSW Australia. For the fiscal year ended 30 June 2021, the Group incurred a total comprehensive loss after income tax of $11.4 million and had net cash outflows from operations of $6.9 million. The Group held total cash of $9.1 million as of 30 June 2021. New or amended Accounting Standards and Interpretations adopted The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the International Accounting Standards Board (‘IASB’) that are mandatory for the current reporting periods. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Historical cost convention The consolidated financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income and derivative financial instruments. Critical accounting estimates The preparation of the consolidated financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 2. Comparatives Where necessary, comparative information has been reclassified and repositioned for consistency with current year disclosures. Statement of compliance These consolidated financial statements were authorised for issue by the Board of Directors in October 2021. The consolidated financial statements comply with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). Parent entity information In accordance with IFRS 10 Consolidated Financial Statements Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Company as at 30 June 2021 and 2020 and the results of all subsidiaries for the years then ended. Incannex Healthcare Limited and its subsidiaries together are referred to in these consolidated financial statements as the ‘Group’. Details of all controlled entities are set out in Note 22. Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Intercompany transactions between entities in the Group are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Where the Group loses control over a subsidiary, it derecognizes the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognized in equity. The Group recognizes the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. Operating segments Operating segments are presented using the ‘management approach’, where the information presented is on the same basis as the internal reports provided to the Chief Executive Officer. The Chief Executive Officer is responsible for the allocation of resources to operating segments and assessing their performance. Foreign currency translation The consolidated financial statements are presented in Australian dollars, which is the Company’s functional and presentation currency. Foreign currency transactions Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. Revenue recognition The Company’s revenues were generated from the sale of pharmaceutical Medicinal Cannabis products through the Special Access Scheme in Australia. Revenue comprises the fair value of the consideration received, or receivable and it is shown net of tax and discounts. The Company also earned revenue from the sale of dentist products through e-commerce website, however, the Company discontinued this segment on 30 June 2020. The Company also earned revenue from the sale of the cannabinoid oil products through Cannvalate Pty Ltd under a distribution agreement (“Distribution Agreement”) entered into with Cannvalate in March 2019 and terminated in June 2021. The Company recorded revenue from this contract on a gross basis in compliance with IFRS 15. In particular, IFRS 15-B35B states, “ When (or as) an entity that is a principal satisfies a performance obligation, the entity recognizes revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred.” The Company recognizes revenue t o depict the transfer of goods and services to clients in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services by applying the following steps: ● Identify the contract with a client; ● Identify the performance obligations in the contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations; and ● Recognize revenue when, or as, the Company satisfies a performance obligation. Revenue may be earned over time as the performance obligations are satisfied or at a The Company’s arrangements with clients can include multiple performance obligations. When contracts involve various performance obligations, the Company evaluates whether each performance obligation is distinct and should be accounted for as a separate unit of accounting under IFRS 15, Revenue from Contracts with Customers. The Company determines the standalone selling price by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include discounting practices, the size and volume of our transactions, our marketing strategy, historical sales, and contract prices. The determination of standalone selling prices is made through consultation with and approval by management, taking into consideration our go-to-market strategy. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes in relative standalone selling prices. The Company disaggregates revenue from contracts with customers based on the categories that most closely depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. During the years ended 30 June 2021 and 2020, the Company recognized revenue from only one such category, being cannabinoid oils sales. As stated in Note 4 to these consolidated financial statements, the Company previously recognized revenue from oral and dental devices, although these operations have been discontinued. All sales are made within Australia and the Company has not disaggregated revenue based on geography. The Company receives payment from its clients after invoicing within the normal 28-day commercial terms. If a client is specifically identified as a credit risk, recognition of revenue is stopped except to the extent of fees that have already been collected. Other income Other income is recognized when it is received or when the right to receive it is established. Other income primarily consists of grant income and interest income. Income tax The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognized for prior reporting years, where applicable. Deferred tax asset s and liabilities are recognized for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: ● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or ● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled, and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognized for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The carrying amount of recognized and unrecognized deferred tax assets are reviewed at each reporting date. Deferred tax assets recognized are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognized deferred tax assets are recognized to the extent that it is probable that there are future taxable profits available to recover the asset. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously. Discontinued operations A discontinued operation is a component of the Group that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately on the face of the statement of comprehensive income. Government grants Income from government grants is recognized only when the Company has reasonable assurance that the grants will be received, and the conditions of the grants will be complied with. Income from Government grants is recognized on a systematic basis over the periods in which the Company recognizes as expenses the related costs for which the grants are intended to compensate. Government grants relate to Australian Federal Government’s COVID-19 support package of a “Cash Flow Boost” for eligible organisations, supporting small and medium sized organisations. Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group’s normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when: it is either expected to be settled in the Group’s normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non-current. Cash Cash and deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Trade and other receivables Trade receivables are initially recognized at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are due for settlement within 30 days. The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue. Other receivables are recognized at amortised cost, less any allowance for expected credit losses. Inventory Inventory raw materials, work in progress and finished goods are stated at the lower of cost and net realisable value on a ‘first in first out’ basis. Cost comprises of direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate proportion of variable and fixed overhead expenditure based on normal operating capacity. Costs of purchased inventory are determined after deducting rebates and discounts received or receivable. Stock in transit is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net of rebates and discounts received or receivable. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Other financial assets Other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided. Financial assets are derecognized when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all a financial asset, its carrying value is written off. Impairment of financial assets The Group recognizes a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group’s assessment at the end of each reporting period as to whether the financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset’s lifetime expected credit losses. The amount of expected credit loss recognized is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. Impairment of non-financial assets Non-financial assets are subject to impairment test whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of the non-financial asset exceeds its recoverable amount (i.e. the higher of value in use and fair value less costs to dispose), the asset is written down and impairment charge is recognized accordingly. Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the asset’s cash-generating unit (i.e. the smallest group of assets to which the asset belongs that generates cash inflow that is largely independent of cash inflows from other assets). An impairment loss allocated to an asset, is reversed only if there have been changes in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. Reversal of an impairment loss, as above, is limited to the lower of the carrying amount of the asset that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the asset in prior years and the asset’s recoverable amount. After an impairment of non-financial asset is recognized, the Company examines at each reporting date whether there are indications that the impairment which was recognized in the past no longer exists or should be reduced. The reversal of impairment loss of an asset is recognized in profit or loss. Property, plant and equipment Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. In connection with the discontinued operations (Note 6), the Company’s property, plant and equipment future value was deemed negligible and recorded a impairment expense for the carrying value during the financial year ended 30 June 2020. As such, value of property, plant and equipment was nil as of 30 June 2021 and 2020. Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant, and equipment (excluding land) over their expected useful lives as follows: Buildings 40 years Leasehold improvements 3 – 10 years Plant and equipment 3 – 7 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter. An item of property, plant and equipment is derecognized upon disposal or when there is no future economic benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Intangible assets In connection with the discontinued operations (Note 6), the Company’s intangible assets future value was deemed negligible and recorded a impairment expense for the carrying value during the financial year ended 30 June 2020. As such, value of intangible assets was nil as of 30 June 2021 and 2020. Research and development Research costs are expensed in the period in which they are incurred. Development costs are capitalised when it is probable that the project will be a success considering its commercial and technical feasibility; the Group is able to use or sell the asset; the Group has sufficient resources and intent to complete the development; and its costs can be measured reliably. Capitalised development costs are amortised on a straight-line basis over the period of their expected benefit, being their finite life of 10 years. The Company has no capitalised any development costs for the years ended June 30, 2021 and 2020. Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial years and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. Lease liabilities A lease liability is recognized at the commencement date of a lease. The lease liability is initially recognized at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index, or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. No lease liabilities are recognized for leases where the lease term is 12 months or less at the commencement date and for leases where the underlying value is deemed to be of low value. The costs of any such leases are recorded within expenses as incurred. Finance costs Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the period in which they are incurred. Provisions Provisions are recognized when the Group has a present (legal or constructive) obligation as a result of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognized as a finance cost. Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled. Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Share-based payments Equity-settled compensation benefits are provided to employees. Equity-settled transactions are awards of shares, performance rights or options over shares, that are provided to employees in exchange for the rendering of services. The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using either the trinomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to receive payment. Inputs into the trinomial and Black-Scholes option pricing models used to calculate fair value are classified as level three inputs under the fair value hierarchy of IFRS 13. No account is taken of any other vesting conditions. The cost of equity-settled transactions are recognized as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognized in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognized in previous periods. Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied. If equity-settled awards are modified, as a minimum an expense is recognized as if the modification has not been made. An additional expense is recognized, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification. If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the vesting period, any remaining expense for the award is recognized over the remaining vesting period, unless the award is forfeited. If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognized immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification. Fair value measurement When an asset, liability or equity instrument, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or an equity instrument or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset, liability or equity instrument, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Assets, liabilities and equity instruments measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. For assets and liabilities measured at fair value after initial recognition, classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are described as follows: ● Level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities; ● Level 2 — valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and ● Level 3 — valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data. Issued capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Dividends Dividends are recognized when declared during the financial years. Loss per share Basic loss per share Basic loss per share is calculated by dividing the profit attributable to the owners of Incannex Healthcare Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial years, adjusted for bonus elements in ordinary shares issued during the financial years. These values are set out in Note 7. Diluted loss per share Diluted loss per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. These values are set out in Note 7. Goods and Services Tax (‘GST’) and other similar taxes Revenues, expenses and assets are recognized net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognized as part of the cost of the acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from the tax authority is included in other receivables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flow. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority. New Accounting Standards not yet adopted International Financial Reporting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting periods ended 30 June 2021 and 2020. The Group’s assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the Group, are set out below. Amendments to IAS 1: Classification of Liabilities as Current or Non-current The amendment clarifies the requirements relating to determining if a liability should be presented as current or non-current in the statement of financial position. Under the new requirement, the assessment of whether a liability is presented as current or n |
Critical Accounting Judgements,
Critical Accounting Judgements, Estimates and Assumptions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Accounting Judgements And Estimates Text Block Abstract | ||
Critical accounting judgements, estimates and assumptions | 2. Critical accounting judgements, estimates and assumptions The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the consolidated financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Coronavirus (COVID-19) pandemic Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the Group based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the Group operates. There does not currently appear to be either any significant impact upon the consolidated financial statements or any significant uncertainties with respect to events or conditions which may impact the Group unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic. Share-based payment transactions The Group measures the cost of equity-settled transactions with employees and third parties by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using either the trinomial or Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity. | 2. Critical accounting judgements, estimates and assumptions The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the consolidated financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Coronavirus (COVID-19) pandemic Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the Group based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the Group operates. There does not currently appear to be either any significant impact upon the consolidated financial statements or any significant uncertainties with respect to events or conditions which may impact the Group unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic. Share-based payment transactions The Group measures the cost of equity-settled transactions with employees and third parties by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using either the trinomial or Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity. Refer to notes 12 and 17 for further information. |
Revenue
Revenue | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Research And Development Expense Text Block Abstract | ||
Revenue | 3. Revenue Consolidated 2022 2021 (a) Revenue (point in time) $ $ Cannabinoid oils sales - 1,897,596 - 1,897,596 (b) Other income Income from other arrangements - 35,569 Government grants - 37,500 Interest 6,271 2,679 Refundable R&D tax offset 782,383 - 788,654 75,748 | 3. Revenue & expenses Consolidated Year Ended Year Ended (a) Revenue (point in time) Cannabinoid oils sales $ 1,897,596 $ 604,884 $ 1,897,596 $ 604,884 (b) Other income Income from other arrangements (1) $ 35,569 $ 123,125 Government grants (2) 37,500 89,500 Interest 2,679 4,545 $ 75,748 $ 217,170 (c) Expenses Executive directors’ remuneration $ 600,043 $ 539,923 (1) Income from other arrangements Income from other arrangements for the fiscal year ended 30 June 2021 relates to sales of Gameday Mouthguards, for orders fulfilled from sales prior to the Company selling the Gameday segment (Note 6). In addition, the Company also recognized other income for settlement of sales refunds in December 2020. Management did not deem the amounts to be material and therefore are not included in the discontinued operations during the fiscal year ended 30 June 2021. Income from other arrangements for the fiscal year ended 30 June 2020 was a result of a transaction entered into with AXIM Biotechnologies, in consideration of the terms of the full understanding 6,800,000 IHL shares were issued in full consideration of the intended transaction. AXIM was not able to fulfil their part of the transaction, and the contract was terminated. In lieu of returning the shares, the Company received cash. As this revenue is not derived from any normal trading transactions, it has been accounted for as a separate line item in the accounts. The return of these shares and the subsequent income is a one off income item for IHL and has not resulted in a change in equity per the consolidated statement of financial position. (2) Notes for Government grants Other income from government grants relates to assistance provided by the Australian Government in relation to the COVID-19 pandemic. The Company has reasonable assurance that it has complied with the conditions attaching to these grants. There were no unfulfilled conditions or other contingencies attaching to these grants as at 30 June 2021 and 2020. |
Segment Information
Segment Information | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Entitys Operating Segments Text Block Abstract | ||
Segment Information | 4. Segment Information Identification of reportable operating segments IFRS 8 Operating Segments requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Executive Officer in order to allocate resources to the segment and to assess its performance. The Group’s operating segments have been determined with reference to the monthly management accounts used by the Chief Executive Officer to make decisions regarding the Group’s operations and allocation of working capital. Due to the size and nature of the Group, the Board as a whole has been determined as the Chief Executive Officer. Based on the quantitative thresholds included in IFRS 8, for the fiscal year ended 30 June 2022, the Group was organised into three operating segments: 1. Research and develop the use of psychedelic medicine and therapies for the treatment of mental health disorders. This activity commenced during the year. During the current year the operations consisted entirely of research and development activities, including clinical trials. 2. Research and develop the use of medicinal cannabinoid products. During the year the Group continued to research and develop its products and the range of its products, including further clinical trials. 3. Corporate operations, consisting of management of the organisation, capital management and management of resources. Revenues consist of finance income and other income. The Group has only one geographical segment, namely Australia. The revenues and results of these segments of the Group as a whole are set out in the condensed statement of comprehensive income and the assets and liabilities of the Group as a whole are set out in the condensed statement of financial position. A summary of revenue and expenses for the period and assets and liabilities at the end of the fiscal year for each segment is shown below. 30 June 2022 Psychedelic products Cannabinoid Products Corporate Consolidated $ $ $ $ Revenue from external customers - - - - Interest revenue - 96 6,175 6,271 Other revenue - 782,383 - 782,383 Other expenses (883,708 ) (4,642,796 ) (10,166,059 ) (15,692,563 ) Segment loss after income tax (883,708 ) (3,860,317 ) (10,159,884 ) (14,903,909 ) Segment assets 56,058 263,731 37,559,819 37,879,608 Segment liabilities (354,310 ) (577,819 ) (1,078,404 ) (2,010,533 ) 30 June 2021 Psychedelic products Cannabinoid Products Corporate Consolidated $ $ $ $ Revenue from external customers - 1,897,596 1 - 1,897,596 Interest revenue - 6 2,673 2,679 Other revenue - - 73,069 73,069 Other expenses (768,316 ) (5,202,371 ) (7,375,456 ) (13,346,143 ) Segment loss after income tax (768,316 ) (3,304,769 ) (7,299,714 ) (11,372,799 ) Segment assets 2,000 104,267 9,222,528 9,328,795 Segment liabilities - (86,522 ) (668,527 ) (755,049 ) 1 Of the total revenue from pharmaceuticals in each year, 100% was through Cannvalate Pty Ltd’s distribution network. | 4. Segment Information Identification of reportable operating segments IFRS 8 Operating Segments requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Executive Officer in order to allocate resources to the segment and to assess its performance. The Group’s operating segments have been determined with reference to the monthly management accounts used by the Chief Executive Officer to make decisions regarding the Group’s operations and allocation of working capital. Due to the size and nature of the Group, the Board as a whole has been determined as the Chief Executive Officer. Based on the quantitative thresholds included in IFRS 8, for the fiscal year ended 30 June 2020, the Group was organized into two operating segments based on differences in products and services provided (1) medicinal cannabis and (2) oral and dental devices. On 30 June 2020, the Company disposed of the oral and dental devices segment (refer note 6) to focus entirely on medicinal cannabis product sales and development. The Group was organized primarily into one operating segment for the fiscal year ended 30 June 2021, consisting of medicinal cannabis, with oral and dental devices recording other expenses related for the fiscal year ended 30 June 2021 in its respective operating segment. The Group has only one geographical segment, namely Australia. The revenues and results of these segments of the Group as a whole are set out in the condensed statement of comprehensive income and the assets and liabilities of the Group as a whole are set out in the condensed statement of financial position. A summary of revenue and expenses for the period and assets and liabilities at the end of the fiscal year for each segment is shown below. Segment results Oral and Psychedelic Medicinal Unallocated Consolidated For the year ended 30 June 2021 Revenue from external customers $ — $ — $ 1,897,596 (1) $ — $ 1,897,596 Interest income — — 6 2,673 2,679 Other income — — — 73,069 73,069 Depreciation — — — — — Amortisation — — — — — Other expenses — (768,316 ) (5,202,371 ) (7,375,456 ) (13,346,143 ) Segment loss after income tax $ — $ (768,316 ) $ (3,304,769 ) $ (7,299,714 ) $ (11,372,799 ) Segment assets $ — $ 2,000 $ 104,267 $ 9,222,528 $ 9,328,795 Segment liabilities $ — $ (86,522 ) $ (668,527 ) $ (755,049 ) For the year ended 30 June 2020 Revenue from external customers $ 718,656 $ — $ 604,884 (1) $ — $ 1,323,540 Interest income 8 — 2 4,543 4,553 Other income 140,816 — 212,625 — 353,441 Depreciation (14,854 ) — — — (14,854 ) Amortisation (21,688 ) — — — (21,688 ) Other expenses (1,591,290 ) — (2,899,761 ) (1,851,577 ) (6,342,628 ) Segment loss after income tax $ (768,352 ) $ — $ (2,082,250 ) $ (1,847,034 ) $ (4,697,636 ) Segment assets $ — $ — $ 662,414 $ 3,573,665 $ 4,236,079 Segment liabilities $ — $ — $ (567,423 ) $ (504,228 ) $ (1,071,651 ) (1) Of the total revenue from medicinal cannabis in the fiscal year ended 30 June 2021 and 2020, 100% was through Cannvalate Pty Ltd’s distribution network. |
Income tax
Income tax | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of Income Tax Text Block Abstract | ||
Income tax | 5. 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: Consolidated 2022 2021 $ $ Accounting loss before tax (14,903,909 ) (11,372,799 ) Income tax benefit at the applicable tax rate of 25% (2021: 26%) 3,725,977 2,956,928 Non-deductible expenses (564,872 ) (1,192,112 ) Non-assessable income 195,596 - Deferred tax assets not recognized (3,356,701 ) (1,764,816 ) Income tax benefit - - Unrecognized Deferred Tax Asset Deferred tax asset not recognized in the financial statements: Unused tax losses 24,845,264 20,867,835 Net unrecognized tax benefit at 25% (2021: 26%) 6,211,316 5,425,637 The potential deferred tax benefit has not been recognized as an asset in the financial statements because recovery of the asset is not considered probable in the context of AASB 112 Income Taxes (IAS 12). The benefit will only be realised if: a) the Company derives future assessable income of a nature and of an amount sufficient to enable the benefit to be realised. b) the Company complies with the conditions for deductibility imposed by the law; and c) no changes in tax legislation adversely affect the Company in realising the benefit. | 5. Income tax The prima facie income tax (expense)/benefit on pre-tax accounting (loss)/profit from operations reconciles to the income tax benefit in the consolidated financial statements as follows: Consolidated Year Ended Year Ended Accounting loss before tax $ (11,372,799 ) $ (4,697,636 ) Income tax benefit at the applicable tax rate of 26% (2020: 27.5%) $ 2,956,928 $ 1,291,850 Non-deductible expenses at the applicable tax rate of 26% (2020:27.5%) (1,192,112 ) (155,498 ) Deferred tax assets not recognized (1,764,816 ) (1,136,352 ) Income tax benefit $ — $ — Deductible temporary differences for which no deferred tax asset has been recognized Unused tax losses at 26% (2020: 27.5%) $ 5,425,637 $ 3,872,022 Net unrecognized tax benefit $ 5,425,637 $ 3,872,022 The net unrecognized tax benefit has not been recognized as an asset in the consolidated financial statements because recovery of the asset is not considered probable in the context of IAS 12 Income Taxes. The benefit will only be realised if: a) the Company derives future assessable income of a nature and of an amount sufficient to enable the benefit to be realised. b) the Company complies with the conditions for deductibility imposed by the law; and c) no changes in tax legislation adversely affect the Company in realising the benefit. |
Loss per share
Loss per share | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Profit or loss [abstract] | ||
Loss per share | 6. Loss per share Consolidated 2022 2021 $ $ Basic loss per share - cents per share (1.25 ) (1.16 ) Basic loss per share The loss and weighted average number of ordinary shares used in the calculation of basic loss per share is as follows: Total comprehensive loss for the year (14,903,909 ) (11,372,799 ) - Weighted average number of ordinary shares (number) 1,191,154,011 976,931,338 The company notes that the diluted loss per share is the same as basic loss per share. | 7. Loss per share Year Ended Year Ended Basic loss per share– continuing and discontinued operations – cents per share $ (1.16 ) $ (0.69 ) Basic loss per share– continuing operations – cents per share $ (1.16 ) $ (0.57 ) Basic loss per share The loss and weighted average number of ordinary shares used in the calculation of basic loss per share is as follows: – Loss from continuing and discontinued operations ($) $ (11,372,799 ) $ (4,697,636 ) – Loss from continuing operations ($) $ (11,372,799 ) $ (3,929,284 ) – Weighted average number of ordinary shares (number) 976,931,338 684,035,399 |
Dividends
Dividends | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Dividends [Abstract] | ||
Dividends | 7. Dividends The Company has not declared a dividend for the year ended 30 June 2022 (2021: $ nil | 8. Dividends The Company has not declared a dividend for the years ended 30 June 2020 or 2021. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of cash and cash equivalents [Abstract] | ||
Cash and cash equivalents | 8. Cash and cash equivalents Consolidated 2022 2021 $ $ Cash at bank and on hand 37,500,931 9,123,617 37,500,931 9,123,617 Cash at bank earns interest at floating rates based on daily bank deposit rates. Reconciliation of loss for the year to net cash flows from operating activities: Loss after income tax (14,903,909 ) (11,372,799 ) Non-cash based expenses: Share-based payments 1,464,550 600,043 Depreciation and amortisation - - Non-cash expense for investor relation services - 3,781,344 Release of Gameday reserve of sales refund - (15,484 ) Other non-cash expenses (594,394 ) 91,354 Changes in net assets and liabilities: (Increase)/Decrease in receivables (92,320 ) 214,903 (Increase)/Decrease in inventory - 183,159 Decrease in other current assets 53,447 172 Increase/(Decrease) in trade payables and accrued expenses 1,111,080 (291,311 ) Increase/(Decrease) in other liabilities 154,173 (101,161 ) Cash flows used in operations (12,807,373 ) (6,909,780 ) | 9. Cash Consolidated 30 June 30 June Cash at bank and on hand $ 9,123,617 $ 3,603,390 $ 9,123,617 $ 3,603,390 Cash at bank earns interest at floating rates based on daily bank deposit rates. i. Reconciliation of loss for the years to net cash flows from operating activities: Year Ended Year Ended Loss after income tax $ (11,372,799 ) $ (4,697,636 ) Non-cash based expenses(income): Share based payments 600,043 565,448 Depreciation and amortisation — 36,542 Non-cash expense for investor relation services 3,781,344 — Release of Gameday reserve of sales refund (15,484 ) — Non-cash expense for annual leave 91,354 97,221 Changes in net assets and liabilities: Decrease/(increase) in receivables 214,903 (315,484 ) Decrease/(increase) in inventory 183,159 (30,355 ) Decrease in other current assets 172 2,928 (Increase)/decrease in trade and other payables (291,311 ) 464,223 Decrease in other liabilities (101,161 ) (30,221 ) Cash flows used in operations $ (6,909,780 ) $ (3,907,334 ) ii. Non-cash financing activities The Company has recorded non-cash transactions in the form of share based payments as disclosed in Note 12 to these consolidated financial statements. The total value of share-based payments recorded during the year ended 2021 is $600,043 (2020: $565,448). The Company has recorded $740,666 of non-cash transactions during the year ended 30 June 2021 in the form of 30,164,690 unlisted options issued on 2 October 2020 as consideration for broker support related to the exercise of 262 million IHLOB options series. The amount is recorded as issuance costs. Subsequent to the year ended 30 June 2021, these options were exercised (Note 23). The Company recorded other current liabilities of $244,403 as at 30 June 2019, relating to option issues awaiting shareholder approval. During the year ended 30 June 2020, this liability was settled via the issue of options upon which time the liability balance of $244,403 was transferred to equity. |
Trade and Other Receivables (Cu
Trade and Other Receivables (Current) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of Trade and Other Receivables Text Block Abstract | ||
Schedule of trade and other receivables (Current) | 9. Trade and other receivables (Current) Current Consolidated 2022 2021 $ $ Other receivables - 53,447 GST recoverable 294,717 115,641 294,717 169,088 Expected credit losses The Group applies the AASB 9 (IFRS 9) simplified model of recognising lifetime expected credit losses for all trade receivables as these items do not have a significant financing component. In measuring the expected credit losses, the trade receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the days past due and also according to the geographical location of customers. | 10. Trade and other receivables (Current) Consolidated 30 June 30 June Current Trade receivables $ — $ 225,125 Other receivables 53,447 51,026 GST recoverable 115,641 137,117 $ 169,088 $ 413,268 Opening receivables, contract assets and contract liabilities with customers: There was no revenue recognized in the years ended 30 June 2021 and 2020 from performance obligations satisfied (or partially satisfied) in previous years. Expected credit losses The Group applies the IFRS 9 simplified model of recognising lifetime expected credit losses for all trade receivables as these items do not have a significant financing component. In measuring the expected credit losses, the trade receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the days past due and also according to the geographical location of customers. |
Other Assets (current)
Other Assets (current) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of other assets current [Abstract] | ||
Other assets (current) | 10. Other assets (current) Prepayments 45,911 29,784 Office rental bond 24,124 - Prepayment clinical trial insurance 13,925 6,306 83,960 36,090 | 11. Other assets (current) Consolidated 30 June 30 June Prepayments $ 29,784 $ 11,083 Office rental bond — 25,179 Prepayment clinical trial insurance $ 6,306 $ — $ 36,090 $ 36,262 |
Trade and Other Payables (Curre
Trade and Other Payables (Current) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of trade and other payables Current [Abstract] | ||
Trade and other payables (current) | 11. Trade and other payables (current) Trade payables 1,300,696 233,117 Accrued expenses 415,449 381,717 Employee leave entitlements 294,388 140,215 2,010,533 755,049 | 14. Trade and other payables (current) Consolidated 30 June 30 June Trade payables $ 233,117 $ 590,099 Accrued expenses 381,717 316,046 Employee leave entitlements 140,215 48,861 $ 755,049 $ 955,006 Employee leave entitlements Reconciliation: Year Ended Carrying value as at 1 July 2020 $ 48,861 Leave accrued by employees during the year 91,354 Balance at 30 June 2021 $ 140,215 Year Ended Carrying value as at 1 July 2019 $ 36,899 Leave accrued by employees during the year 11,962 Balance at 30 June 2020 $ 48,861 |
Issued Capital
Issued Capital | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of issued capital [Abstract] | ||
Issued capital | 12. Issued capital Consolidated 2022 2021 $ $ 86,586,794 45,852,107 Consolidated 2022 2022 $ No. of shares (a) Ordinary shares - movements during year At start of year 45,852,107 1,068,411,224 Issues of new shares – placements 400,000 5,000,000 Issues of new shares – share based payments 1 - 10,000,000 Exercise of options 40,274,243 207,650,638 Shares in lieu of advisor fees 450,000 1,272,166 Share issue costs (389,555 ) - At end of year 86,586,794 1,292,334,028 1 The fair value of shares issued to employees and Directors expensed during the period has been recorded through the share base payment equity reserve refer to note 13 for further details. | 16. Issued capital (a) Issued Capital Consolidated 30 June 30 June Ordinary shares $ 45,852,107 $ 34,192,043 (b) Ordinary shares — movements during years Year ended Year ended At beginning of year 748,654,489 581,897,040 Issues of new shares – placements — 114,663,460 Issues of new shares – share based payments 2,952,619 5,750,000 Conversion of performance rights 30,303,593 11,916,668 Exercise of options 286,500,523 34,427,321 At end of year 1,068,411,224 748,654,489 Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of shares held. On a show of hands, every shareholder present at a meeting is entitled to one vote and upon a poll each share is entitled to one vote. Ordinary shares have no par value and the Company does not have a limited amount of authorised capital. |
Reserves
Reserves | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of Reserves Within Equity Text Block Abstract | ||
Reserves | 13. Reserves Equity based premium reserve Consolidated 2022 2021 $ $ Balance at 1 July 2021 6,612,641 1,490,588 Options issued to advisors 1 - 4,522,010 Equity instruments issued to management and directors 1,464,550 600,043 At 30 June 2022 8,077,191 6,612,641 1 During the year ended 30 June 2021, 40,000,000 options exercisable at $0.15, $0.20, and $.25 were issued to consultants for investor relation services. In addition, 30,164,690 options exercisable at $0.08 were issued as consideration for broker support of the exercise of the 262m listed IHLOB options series. During the year ended 30 June 2020, 33,000,000 options exercisable at $0.08 and expiring on 30 September 2021, were issued to brokers who supported the July 2019 capital raisings. These options have been valued using a Black-Scholes option model with inputs being grant date share price of $0.04 risk-free rate of 0.24% and volatility of 92%. The equity based premium reserve is used to record the value of equity issued to raise capital, and for share-based payments. | 17. Reserves Equity based premium reserve Consolidated Year Ended Year Ended Balance at start of year $ 1,490,588 $ 451,643 Options issued to advisors (1) 4,522,010 449,093 Options issued to Cannvalate Pty Ltd (2) — 244,403 Equity instruments issued to management and directors 600,043 345,449 Balance at end of year $ 6,612,641 $ 1,490,588 (1) During the year ended 30 June 2021, 40,000,000 options exercisable at $0.15, $0.20, and $.25 were issued to consultants for investor relation services. In addition, 30,164,690 options exercisable at $0.08 were issued as consideration for broker support of the exercise of the 262m listed IHLOB options series (see Note 12). During the year ended 30 June 2020, 33,000,000 options exercisable at $0.08 and expiring on 30 September 2021, were issued to brokers who supported the July 2019 capital raisings. These options have been valued using a Black-Scholes option model with inputs being grant date share price of $0.04 risk-free rate of 0.24% and volatility of 92%. (2) On 9 August 2019, at a general meeting of shareholders, the issue of 120,000,000 options to Cannvalate Pty Ltd as remuneration for Cannvalate’s management of the Company’s clinical program was approved. This amount was initially recorded as a payable as at 30 June 2019 and transferred to the reserve in the year ended 30 June 2020. The options were valued using Black-Scholes option model with inputs being grant date share price of $0.02; risk-free rate of 1.07% and volatility of 59%. The equity based premium reserve is used to record the value of equity issued to raise capital, and for share-based payments. |
Share Based Payments
Share Based Payments | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Share Based Payment Arrangements Text Block Abstract | ||
Share based payments | 14. Share based payments From time to time, the Company may issue equity securities (i.e., shares, options or performance rights) to its employees, directors or advisors to more closely align rewards for performance with the achievement of the Company’s growth and strategic objectives. Where the recipient is a director of the Company, shareholder approval must be sought under the ASX Listing Rules prior to the issue of any equity securities to any director. Fair value of shares issued The fair value of shares issued to employees is determined using the closing price of shares on the grant date and expensed over the vesting period. The total fair value of shares issued to employees and directors during the year was $3,588,000, as of 30 June 2022 there was $2,743,854 of total unrecognized compensation cost related to unvested shares. Options The exercise price of options outstanding as of 30 June 2022 and 2021 ranged between $0.08 and $0.35. As of 30 June 2022, there was $1,853,263 of total unrecognized compensation cost related to unvested share options, which is expected to be recognized over a weighted-average period of approximately 1.39 years. The fair values at grant date are independently determined using either a trinomial pricing or Black-Scholes option model that take into account any price to exercise, the term of the options or rights, the share price at grant date, the price volatility of the underlying share and the risk-free interest rate for the term of the options or rights. The expensed fair value in the tables below represents the proportion of the total fair value that has been allocated to the current period with the balance to be expensed in future periods. The following share options were issued to employees and consultants as share based payments during the year ended 30 June 2022: Options Number Grant 2 Expiry Exercise Total Options granted to Directors Unlisted Options 1,399,999 09-Jun-22 01-Jul-25 $ 0.26 $ 298,200 Unlisted Options 1,399,999 09-Jun-22 01-Jul-26 $ 0.31 $ 309,400 Unlisted Options 1,400,002 09-Jun-22 01-Jul-27 $ 0.35 $ 324,800 Unlisted Options 1,399,999 09-Jun-22 01-Jul-26 $ 0.26 $ 326,200 Unlisted Options 1,399,999 09-Jun-22 01-Jul-27 $ 0.31 $ 334,600 Unlisted Options 1,400,002 09-Jun-22 01-Jul-28 $ 0.35 $ 347,200 Options granted to employees Unlisted Options 533,333 29-Apr-22 01-Jul-25 $ 0.26 $ 139,200 Unlisted Options 533,333 29-Apr-22 01-Jul-26 $ 0.31 $ 143,467 Unlisted Options 533,334 29-Apr-22 01-Jul-27 $ 0.35 $ 148,800 Total options 10,000,000 $ 2,371,867 The following share options were issued to employees and consultants as share based payments during the year ended 30 June 2021: Options Number Grant 2 Expiry Exercise Total Options granted to third parties Unlisted Options 10,000,000 20-Nov-20 20-Nov-23 $ 0.15 $ 647,348 Unlisted Options 10,000,000 20-Nov-20 20-Nov-23 $ 0.25 $ 527,766 Unlisted Options 10,000,000 25-Feb-21 20-Nov-23 $ 0.20 $ 1,352,588 Unlisted Options 10,000,000 25-Feb-21 20-Nov-23 $ 0.25 $ 1,253,140 Unlisted Options 30,164,690 2-Oct-20 30-Sep-21 $ 0.08 $ 740,665 Total options 70,164,690 $ 4,521,507 The fair values at grant date are independently determined using either a trinomial pricing or Black-Scholes option model that take into account any price to exercise, the term of the options or rights, the share price at grant date, the price volatility of the underlying share and the risk-free interest rate for the term of the options or rights. Inputs into the trinomial and Black-Scholes option pricing models used to calculate fair value are classified as level three inputs under the fair value hierarchy of AASB 13 (IFRS 13). The fair value of the equity-settled share options granted is estimated as at the grant date using a Black-Scholes option model taking into account the terms and conditions upon which the options were granted, as follows for the year ended 30 June 2022: $0.26 Options $0.31 Options $0.35 Options $0.26 Options $0.31 Options $0.35 Options $0.26 Options $0.31 Options $0.35 Options 01-Jul-25 01-Jul-26 01-Jul-27 01-Jul-26 01-Jul-27 01-Jul-28 01-Jul-25 01-Jul-26 01-Jul-27 Number 1,399,999 1,399,999 1,400,002 1,399,999 1,399,999 1,400,002 533,333 533,333 533,334 Expected volatility (%) 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % Risk-free interest rate (%) 3.12 % 3.33 % 3.33 % 3.33 % 3.33 % 3.33 % 2.71 % 2.90 % 2.90 % Expected life of option (years) 3.06 4.06 5.06 4.06 5.06 6.07 3.18 4.18 5.18 Exercise price (cents) 26 31 35 26 31 35 26 31 35 Grant date share price (cents) 35 35 35 35 35 35 41 41 41 Vesting date 30-Jun-22 30-Jun-23 30-Jun-24 30-Jun-23 30-Jun-24 30-Jun-25 01-Jul-22 01-Jul-23 01-Jul-24 The fair value of the equity-settled share options granted is estimated as at the grant date using a Black-Scholes option model taking into account the terms and conditions upon which the options were granted, as follows for the year ended 30 June 2021: $0.08 $0.15 $0.25 $0.20 $0.25 30-Sep-21 20-Nov-23 20-Nov-23 20-Nov-23 20-Nov-23 Number 30,164,690 10,000,000 10,000,000 10,000,000 10,000,000 Expected volatility (%) 100 % 100 % 100 % 101 % 101 % Risk-free interest rate (%) 0.17 % 0.11 % 0.11 % 0.12 % 0.12 % Expected life of option (years) 1 3 3 2.7 2.7 Exercise price (cents) 8 15 25 20 25 Grant date share price (cents) 7.7 11.5 11.5 22 22 Vesting date 2-Oct-20 20-Nov-20 20-Nov-20 25-Feb-21 25-Feb-21 The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome. Performance Rights Movement in number of Performance Shares and Performance Rights for the years ended: Security Description $0.$0.08 Options Balance at start of year Granted by the Company Converted or Expired Balance at end of year 30 June 2022 30-Sep-21 - - - - 30 June 2021 30-Sep-21 41,553,593 - (41,553,593 ) - (1) 30,303,593 performance rights converted into ordinary shares upon achievement of designated performance hurdles and 11,250,000 performance rights expired. | 12. Share based payments From time to time, the Company may issue equity securities (i.e. shares, options or performance rights) to its employees, directors or advisors to more closely align rewards for performance with the achievement of the Company’s growth and strategic objectives. Where the recipient is a director of the Company, shareholder approval must be sought under the ASX Listing Rules prior to the issue of any equity securities to any director. Fair value of shares issued The fair value of shares issued as compensation is determined using the closing price of shares on the grant date and expensed over the vesting period. Options The following table summarizes the Company’s stock option activity for the years ended 30 June 2021 and 2020: Number of Weighted Weighted Outstanding as of 30 June 2019 262,960,728 $ 0.040 1.255 Granted 412,169,705 $ 0.139 Exercised (34,427,321 ) $ 0.031 Outstanding as of 30 June 2020 640,703,112 $ 0.104 0.748 Granted 72,414,690 $ 0.152 Exercised (286,500,523 ) $ 0.044 Expired or forfeited (88,000,000 ) $ 0.104 Outstanding as of 30 June 2021 338,617,279 $ 0.166 0.568 Exercisable as of 30 June 2021 337,117,279 $ 0.167 The exercise price of options outstanding as of 30 June 2021 and 2020 ranged between $0.05 and $0.25. The weighted average grant date fair value of options granted was $0.10 and $0.22 for the year ended 30 June 2021. As of 30 June 2021, there was $116,680 of total unrecognized compensation cost related to unvested share options, which is expected to be recognized over a weighted-average period of approximately one year. The following share options were issued to employees and consultants as share based payments during the year ended 30 June 2021: Number Grant Expiry Exercise Total Options granted to third parties Unlisted options 10,000,000 20-Nov-2020 20-Nov-2023 $ 0.15 $ 647,348 Unlisted options 10,000,000 20-Nov-2020 20-Nov-2023 $ 0.25 $ 527,766 Unlisted options 10,000,000 25-Feb-2021 20-Nov-2023 $ 0.20 $ 1,352,588 Unlisted options 10,000,000 25-Feb-2021 20-Nov-2023 $ 0.25 $ 1,253,140 Unlisted options 30,164,690 02-Oct-2020 30-Sep-2021 $ 0.08 $ 740,665 Total options granted to third parties 70,164,690 $ 4,521,507 Options granted to employees Unlisted options 750,000 01-Jul-2020 30-Jun-2025 $ 0.05 $ 25,432 Unlisted options 750,000 01-Jul-2020 30-Jun-2026 $ 0.05 $ 27,450 Unlisted options 750,000 01-Jul-2020 30-Jun-2027 $ 0.05 $ 29,040 Total options granted to employees 2,250,000 $ 81,922 Total options 72,414,690 $ 4,603,429 The following share options were issued to employees and consultants as share based payments during the year ended 30 June 2020: Number Grant Expiry Exercise Total Options granted to third parties Unlisted options 10,000,000 8-Aug-2019 01-Jan-2020 $ 0.02 $ 85,251 Unlisted options 10,000,000 8-Aug-2019 01-May-2020 $ 0.03 $ 51,531 Unlisted options 12,000,000 8-Aug-2019 01-May-2020 $ 0.04 $ 34,966 Unlisted options 14,000,000 19-Aug-2019 01-Dec-2020 $ 0.06 $ 30,297 Unlisted options 16,000,000 19-Aug-2019 01-Dec-2020 $ 0.08 $ 18,248 Unlisted options 18,000,000 19-Aug-2019 01-Dec-2020 $ 0.10 $ 11,606 Unlisted options 20,000,000 19-Aug-2019 01-Dec-2020 $ 0.12 $ 7,700 Unlisted options 20,000,000 19-Aug-2019 01-Dec-2020 $ 0.14 $ 4,804 Unlisted options 89,919,705 Various (1) 30-Sep-2021 $ 0.08 $ 449,067 Total options granted to third parties 209,919,705 $ 693,470 Options granted to employees Unlisted options 750,000 26-Jun-2020 30-Jun-2025 $ 0.05 $ 24,817 Unlisted options 750,000 26-Jun-2020 30-Jun-2026 $ 0.05 $ 26,424 Unlisted options 750,000 26-Jun-2020 30-Jun-2027 $ 0.05 $ 27,754 Unlisted options 200,000,000 26-Jun-2020 30-Sep-2021 $ 0.20 $ 306,299 Total options granted to employees 202,250,000 $ 385,294 Total options 412,169,705 $ 1,078,764 (1) 22,368,422 options were issued to participants of the July 2019 equity capital raisings attaching to shares subscribed for under those raisings and 33,000,000 options were issued to brokers who supported those equity capital raisings. A further 34,551,283 options were issued to participants of the October 2019 capital raising attaching to shares subscribed for under that raising. The fair values at grant date are independently determined using either a trinomial pricing or Black-Scholes option model that take into account any price to exercise, the term of the options or rights, the share price at grant date, the price volatility of the underlying share and the risk-free interest rate for the term of the options or rights. Inputs into the trinomial and Black-Scholes option pricing models used to calculate fair value are classified as level three inputs under the fair value hierarchy of IFRS 13. The fair value of the equity-settled share options granted is estimated as at the grant date using a Black-Scholes option model taking into account the terms and conditions upon which the options were granted, as follows for the year ended 30 June 2021: $0.08 $0.15 $0.25 $0.20 $0.25 Number 30,164,690 10,000,000 10,000,000 10,000,000 10,000,000 Dividend yield (%) — % — % — % — % — % Expected volatility (%) 86 % 100 % 100 % 101 % 101 % Risk-free interest rate (%) 0.17 % 0.11 % 0.11 % 0.12 % 0.12 % Expected life of option (years) 1 3 3 2.7 2.7 Exercise price (cents) 8 15 25 20 25 Grant date share price (cents) 7.7 11.5 11.5 22 22 Vesting date 2-Oct-2020 20-Nov-2020 20-Nov-2020 25-Feb-2021 25-Feb-2021 The fair value of the equity-settled share options granted is estimated as at the grant date using a Black-Scholes option model (for all $0.05 options) and a trinomial option model (for the $0.20 options) taking into account the terms and conditions upon which the options were granted, as follows for the year ended 30 June 2020: $0.05 $0.05 $0.05 $0.20 Number 750,000 750,000 750,000 2,000,000 Dividend yield (%) — % — % — % — % Expected volatility (%) 92 % 92 % 92 % 93 % Risk-free interest rate (%) 0.39 % 0.48 % 0.58 % 0.25 % Expected life of option (years) 5 6 7 1.25 Exercise price (cents) 5.0 5.0 5 20 Grant date share price (cents) 4.8 4.8 4.8 4.8 Vesting date 30-Jun-2020 30-Jun-2021 30-Jun-2022 Refer (a) below The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome. (a) The options vest upon the shares having a closing price of 20 cents per share or more for any 5 trading days at any time from the date of grant of the options until the expiry date of the options (30 September 2021). Performance Rights Movement in number of Performance Shares and Performance Rights for the years ended: 30 June 2021 Security Description Balance at Granted by Converted or Balance at Performance Rights (1) 41,553,593 — (41,553,593 ) — (1) 30,303,593 performance rights converted into ordinary shares upon achievement of designated performance hurdles and 11,250,000 performance rights expired. 30 June 2020 Security Description Balance at Granted by Converted or Balance at Performance Rights (1) 24,166,668 32,303,593 (14,916,668 ) 41,553,593 Performance Shares (2) 20,000,002 — (20,000,002 ) — (1) 32,303,593 performance rights were issued as remuneration for the Company’s Chief Medical Officer (Dr Sud Agarwal), after approval by shareholders on 26 June 2020. 11,916,668 performance rights converted into ordinary shares upon achievement of designated performance hurdles and 3,000,000 performance rights expired. (2) Performance shares were issued to holders upon the Company’s relisting in November 2016. Performance hurdles attaching to these shares related to sales targets within the now discontinued devices business. These targets were not achieved and the performance shares lapsed on 30 June 2020. The value-based performance rights have milestones which are market-based. In arriving at the fair value of these rights the probability of achieving these milestones (related to various levels of market capitalisation) has been estimated using a trinomial option model, with major inputs for 30 June 2020 being grant date share price. of $0.048; risk-free rate of 0.25%; and volatility of 95%, for a total value of $469,324. Of the performance rights $280,253 and $189,071 was expensed in the years ended 30 June 2021 and 2020, respectively. The milestone performance rights are valued at the share price at grant date ($0.048) taking into account management’s estimate s of the likelihood of meeting the milestones. |
Remuneration of Auditors
Remuneration of Auditors | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Auditors Remuneration Text Block Abstract | ||
Remuneration of auditors | 15. Remuneration of auditors Consolidated Consolidated 2022 2021 $ $ Audit or review of the financial reports of the company Amounts received & receivable by the auditor: Audit services – PKF Brisbane Audit 85,000 - Audit services – HLB Mann Judd 23,138 37,785 Audit services – Withum Smith & Brown (US auditor) 357,208 287,975 Other services – Withum Smith & Brown (US auditor) - - 465,346 325,760 Withum Smith&Brown, PC were appointed auditors in the US in preparation for listing the Company’s securities in the US. During the year the work carried out involved the PCAOB compliant audits of the financial statements. | 18. Remuneration of auditors Consolidated Year Ended Year Ended Audit or review of the financial reports of the Company Amounts received & receivable by the auditor: Audit services – HLB Mann Judd $ 37,785 $ 37,000 Audit services – Withum Smith & Brown (US auditor) 287,975 — Total $ 325,760 $ 37,000 Withum Smith & Brown, PC were appointed auditors in the United States of America (“USA”) in preparation for listing the Company’s securities in the USA. During the year ended 30 June 2021 , the work carried out involved the audit of PCAOB standards and IFRS standards as issued by IASB compliant financial statements. The above remuneration of auditors has been recorded within compliance, legal, and regulatory expense in the consolidated statement of comprehensive loss. |
Financial Instruments
Financial Instruments | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Financial Instruments Text Block Abstract | ||
Financial Instruments | 16. Financial Instruments The Group’s principal financial instruments comprise cash and short-term deposits. The main purpose of these financial instruments is to raise finance for the Group’s operations. The Group has various other financial liabilities such as trade payables, which arise directly from its operations. It is, and has been throughout the year under review, the Group’s policy that no trading in financial instruments shall be undertaken. The main risks arising from the Group’s financial instruments are cash flow interest rate risk, liquidity risk, and credit risk. The Board reviews and agrees policies for managing each of these risks and they are summarised below. (a) Interest rate risk The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s short-term deposits with a floating interest rate. The Group’s exposure to interest rate on financial assets and financial liabilities is detailed in the sensitivity analysis section of this note. (b) Sensitivity analysis During 2022, if interest rates had been 50 basis points higher or lower than the prevailing rates realised, with all other variables held constant, there would have been an immaterial change in post-tax result for the year. The impact on equity would have been the same. (c) Net fair values The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and liabilities approximates their carrying value. (d) Commodity price risk The Group’s exposure to price risk is minimal. (e) Credit risk There are no significant concentrations of credit risk within the Group. With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents, available-for-sale financial assets and certain derivative instruments, the Group’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. Since the Group trades only with recognized third parties, there is no requirement for collateral. (f) Liquidity risk The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of share issues and convertible notes. The Group’s contractual liabilities at 30 June 2022 were as follows: Description Less than 1 month 1 to 3 months 3 months to 1 year 1 to 5 Total Consolidated $ $ $ $ $ Payables & accruals 1,828,527 - - - 1,828,527 1,828,527 - - - 1,828,527 The Group’s contractual liabilities at 30 June 2021 were as follows: Description Less than 1 month 1 to 3 months 3 months to 1 year 1 to 5 Total Consolidated $ $ $ $ $ Payables & accruals 614,834 - - - 614,834 614,834 - - - 614,834 (g) Capital Management The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it may continue to provide returns for shareholders and benefits for other stakeholders. Due to the nature of the Group’s past activities, being mineral exploration, it does not have ready access to credit facilities and therefore is not subject to any externally imposed capital requirements, with the primary source of Group funding being equity raisings and unsecured convertible notes. Accordingly, the objective of the Group’s capital risk management is to balance the current working capital position against the requirements to meet exploration programmes and corporate overheads. This is achieved by maintaining appropriate liquidity to meet anticipated operating requirements, with a view to initiating fund raisings as required. | 19. Financial Instruments The Group’s principal financial instruments comprise cash and short-term deposits and convertible notes. The main purpose of these financial instruments is to raise finance for the Group’s operations. The Group has various other financial liabilities such as trade payables, which arise directly from its operations. It is, and has been throughout the years, the Group’s policy that no trading in financial instruments shall be undertaken. The main risks arising from the Group’s financial instruments are cash flow interest rate risk, liquidity risk, and credit risk. The Board reviews and agrees policies for managing each of these risks and they are summarised below. Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the consolidated financial statements. (a) Interest rate risk The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s short-term deposits with a floating interest rate. The Group’s exposure to interest rate on financial assets and financial liabilities is detailed in the sensitivity analysis section of this note. (b) Sensitivity analysis During the years ended 30 June 2021 and 2020, if interest rates had been 50 basis points higher or lower than the prevailing rates realised, with all other variables held constant, there would have been an immaterial change in post-tax result for the year. The impact on equity would have been the same. (c) Net fair values The net fair value of cash and non-interest bearing monetary financial assets and liabilities approximates their carrying value. (d) Commodity price risk The Group’s exposure to price risk is minimal. (e) Credit risk There are no significant concentrations of credit risk within the Group. With respect to credit risk arising from the other financial assets of the Group, which comprise cash, available-for-sale financial assets and certain derivative instruments, the Group’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. Since the Group trades only with recognized third parties, there is no requirement for collateral. (f) Liquidity risk The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of share issues and convertible notes. The Group’s contractual liabilities at 30 June 2021 were as follows: Description Less than 1 to 3 3 months to 1 to 5 Total Consolidated Payables & accruals $ 614,834 $ — $ — $ — $ 614,834 $ 614,834 $ — $ — $ — $ 614,834 The Group’s contractual liabilities at 30 June 2020 were as follows: Description Less than 1 to 3 3 months to 1 to 5 Total Consolidated Payables & accruals $ 906,145 $ — $ — $ — $ 906,145 $ 906,145 $ — $ — $ — $ 906,145 (g) Capital Management The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it may continue to provide returns for shareholders and benefits for other stakeholders. Due to the nature of the Group’s past activities, being a drug development business, it does not have ready access to credit facilities and therefore is not subject to any externally imposed capital requirements, with the primary source of Group funding being equity raisings and unsecured convertible notes. Accordingly, the objective of the Group’s capital risk management is to balance the current working capital position against the requirements and corporate overheads. This is achieved by maintaining appropriate liquidity to meet anticipated operating requirements, with a view to initiating fund raisings as required. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of Commitments and Contingent Liabilities Text Block Abstract | ||
Commitments and contingencies | 17. Commitments and contingencies Lease commitments The Group holds three commercial leases for its office premises in Melbourne, Sydney and Perth, Australia. All of these leases had terms of 12 months from the commencement date of the lease. The lease payment are therefore recognized on a straight line basis over the lease term. Other commitments The Group entered into an arrangement with Monash University (“Monash”) on 23 November 2020, whereby Monash will provide Research Trials in relation to Psi-GAD-1 over a 3-year period. The agreement sets out the scope of the Trials to be conducted, and the cost to the Group, of which 50% was paid on commencement of the agreement. | 20. Commitments and contingencies Lease commitments The Group holds two commercial leases for its office premises in Melbourne and Sydney, Australia. Both of these leases had terms of 12 months from the commencement date of the lease. Future minimum payments under these contracts as at 30 June are as follows: Consolidated 30 June 30 June Within one year $ 56,496 $ 9,697 One to three years 37,916 — Total minimum contract payments $ 94,412 $ 9,697 In transitioning to IFRS 16, these leases were not capitalised. |
Key Management Personnel Compen
Key Management Personnel Compensation and Related Party Disclosure | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of key management personnel compensation [Abstract] | ||
Key Management Personnel compensation and related party disclosure | 18. Key Management Personnel compensation and related party disclosure The Key Management Personnel of Incannex Healthcare Limited during the year were: Troy Valentine Peter Widdows Joel Latham Sud Agarwal (resigned 28 June 2022) George Anastassov (appointed 28 June 2022) Key management personnel compensation 2022 2021 $ $ Short-term employee benefits 1,333,992 761,231 Post-employment benefits 47,547 38,877 Share based payments 1,028,634 672,699 Total KMP compensation 2,410,173 1,472,807 Transactions with related entities Transactions between related parties are on commercial terms and conditions, no more favourable than those available to other parties unless otherwise stated. During the year, $407,824 (2021: $97,976) in fees were paid to Alignment Capital Pty Ltd (“Alignment”), an entity in which Mr Valentine is a director. Alignment was engaged by the Company to manage the exercise of IHLOB options program. | 21. Key Management Personnel compensation and related party disclosure The Key Management Personnel of Incannex Healthcare Limited during the years were: Troy Valentine Peter Widdows Joel Latham Sud Agarwal Key management personnel compensation Consolidated Year Ended Year Ended Short-term employee benefits $ 761,231 $ 638,201 Share based payments (1) 672,699 565,448 Post-employment benefits 38,877 29,985 Total KMP compensation $ 1,472,807 $ 1,233,634 (1) The Company notes the amounts do not agree to the Consolidated Statements of Changes in Equity for the year ended 30 June 2021. The Company notes there was a reversal of expense in the amount of $72,656 related to 88,000,000 share options issued to Cannvalate Pty Ltd due to the options being forfeited. These options had been issued during financial year ended June 30, 2020. Transactions with related entities Transactions between related parties are on commercial terms and conditions, no more favourable than those available to other parties unless otherwise stated. During the year ended 30 June 2021, $97,976 (2020: $145,200) fees were paid to Alignment Capital Pty Ltd (“Alignment”), an entity in which Mr Valentine is a director. Alignment was engaged by the Company to act as lead manager in the various capital raisings conducted during the year. Cannvalate Pty Ltd (Cannvalate) is an entity of which Dr Sud Agarwal is a significant shareholder, the CEO and a director. In March 2019, the Company entered into a distribution agreement with Cannvalate. As stated in Note 4, of the total revenue from medicinal cannabis in the fiscal year ended 30 June 2020, 100% was through Cannvalate’s distribution network. This agreement is no longer effective and was terminated in June 2021. As stated in Note 19, On 9 August 2019, at a general meeting of shareholders, the issue of 120,000,000 options to Cannvalate as remuneration for Cannvalate’s management of the Company’s clinical program was approved. This amount was initially recorded as a payable as at 30 June 2019 and transferred to reserves in the year ended 30 June 2020. There $229,889 of amounts payable to related parties as of 30 June 2021, which are included in trade and other payables on the consolidated statements of financial position. |
Details of the Controlled Entit
Details of the Controlled Entity | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Information About Unconsolidated Structured Entities Controlled By Investment Entity Text Block Abstract | ||
Details of the controlled entity | 19. Details of the controlled entity 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: 100%). | 22. Details of the controlled entity The consolidated financial statements include the financial statements of Incannex Healthcare Limited (‘IHL’) and its wholly owned subsidiary Incannex Pty Ltd (‘IXPL’). IXPL is incorporated in Australia and IHL owns 100% of the issued ordinary shares in IXPL (2020: 100%). On 30 June 2020, the Group disposed entirely of its 100% subsidiary — Gameday International Pty Ltd, (‘Gameday’). |
Events Subsequent to Reporting
Events Subsequent to Reporting Date | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Events After Reporting Period Text Block Abstract | ||
Events Subsequent to Reporting Date | 20. Events Subsequent to Reporting Date On 17 August 2022, the company appointed Robert Bruce Clark to the board as a non-executive Director. On 5 August 2022, the Company completed the acquisition on APIRx Pharmaceuticals via the issuance of 218,169,497 IHL ordinary shares to the stakeholders of APIRx in an all–scrip transaction. As substantially all of the fair value of the assets acquired in the transaction relates to intangible assets (e.g., patents, trademarks, active clinical and pre-clinical research and development projects), the transaction has been determined to be an asset acquisition and not a business combination. On 5 August 2022, the Company issued shares and options to Ryba LLC post year end pursuant to the mandate executed between the companies in November 2021. As the transaction between the Company and APIRx was deemed complete on 05 August 2022 the shares and options were issued. No further significant events have occurred since the end of the financial year. | 23. Subsequent events On 21 July 2021, the Company issued 239,103 ordinary shares due to the exercise of unlisted options by option holders with an exercise price of $0.08 per share receiving $19,128 of proceeds. On 16 August 2021, the Company issued an additional 2,739,662 ordinary shares due to the exercise of “IHLAH” share options at an exercise price of $0.08 per share for proceeds of $219,173. On 25 August 2021, the Company issued 9,201,186 ordinary shares due to the exercise of “IHLAH” share options at an exercise price of $0.08 per share on for proceeds of $736,095. On 7 September 2021, the Company issued ordinary shares for total proceeds of $4,587,667 due to the exercise of “IHLAH” share options: — 7,345,833 of ordinary shares at an exercise price of $0.08 per share — 20,000,000 of ordinary shares at an exercise price of $0.20 per share On 21 September 2021, the Company issued 61,311,557 ordinary shares due to the exercise of “IHLAH” share options at an exercise price of $0.08 per share on for proceeds of $4,904,925. On 4 October 2021, The Company issued ordinary shares for total proceeds of $5,114,109 due to the exercise of “IHLAH” share options: — 11,427,616 of ordinary shares at a exercise price of $0.08 per share — 20,999,500 of ordinary shares at an exercise price of $0.20 per share On 7 October 2021, the Company issued 6,852,322 ordinary shares due to the exercise of “IHLAH” share options at an exercise price of $0.08 per share on for proceeds of $548,186. No further significant events have occurred since the end of the fiscal year. |
Parent Entity Disclosures
Parent Entity Disclosures | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Parent Entity Disclosures Abstract | ||
Parent entity disclosures | 21. Parent entity disclosures The individual financial statements for the parent entity show the following aggregate amounts. Statement of financial position 2022 2021 Financial Position $ $ Current assets 37,559,819 9,222,528 Non-Current assets - - Total assets 37,559,819 9,222,528 Current liabilities (1,078,404 ) (668,527 ) Non-current liabilities - - Total liabilities (1,078,404 ) (668,527 ) Net assets 36,481,415 8,554,001 Issued capital 86,586,794 45,852,107 Reserves 8,077,191 6,612,641 Accumulated losses (58,182,570 ) (43,910,747 ) Shareholders’ equity 36,481,415 8,554,001 Contingencies of the Parent Entity There are no contingent liabilities involving the parent entity (2021: Nil Guarantees of the Parent Entity There are no guarantees involving the parent entity (2021: Nil | 24. Parent entity disclosures Incannex Healthcare Limited (ACN 096 635 246) is the parent entity which is registered and domiciled in Australia. The registered address of the parent entity is Suite 105, 8 Century Circuit, Norwest 2153, NSW Australia. The individual financial statements for the parent entity show the following aggregate amounts. The information presented has been prepared using accounting policies as discussed in Note 1. 30 June 30 June Financial Position as at 30 June 2021 and 2020 Current assets $ 9,222,528 $ 3,573,665 Non-Current assets (i) — — Total assets 9,222,528 3,573,665 Current liabilities (668,527 ) (504,228 ) Non-current liabilities — — Total liabilities (668,527 ) (504,228 ) Net assets $ 8,554,001 $ 3,069,437 Share capital $ 45,852,107 $ 34,192,043 Reserves 6,612,641 1,490,588 Deficit (43,910,747 ) (32,613,194 ) Shareholders’ equity $ 8,554,001 $ 3,069,437 (i) In the year ended 30 June 2020, the loan to the subsidiary company has been fully impaired. Contingencies of the Parent Entity There were no contingent liabilities involving the parent entity as at 30 June 2021 and 2020. Guarantees of the Parent Entity There were no guarantees involving the parent entity as at 30 June 2021 and 2020. |
Discontinued operations
Discontinued operations | 12 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Non Current Assets Held For Sale And Discontinued Operations Text Block Abstract | |
Discontinued operations | 6. Discontinued operations Description On 30 June 2020 the Group sold its 100% subsidiary — Gameday International Pty Ltd (“Gameday”), for consideration of $29,277 which was the carrying value of its assets at that date so no loss on sale was incurred. Gameday produced and sold the Group’s dental devices and had been a loss maker since 2016. As a result of the COVID-19 pandemic it suffered further as a result of the shut-down of community sport which directly affected the sale of its main product being sporting mouthguards. The sale of Gameday will allow the Group to pursue and focus entirely on its medicinal cannabis activities. Financial performance information Consolidated Year Ended Year Ended Revenue from external customers $ — $ 718,656 Interest income — 8 Other income — 140,816 Product costs — (589,570 ) Administration expense — (38,985 ) Advertising and promotion — (218,865 ) Depreciation — (14,854 ) Amortisation — (21,688 ) Loss on disposal of property, plant and equipment — (13,654 ) Impairment cost — (82,989 ) Occupancy expenses — (81,493 ) Salaries and employee benefit expense — (565,734 ) Loss before income tax — (768,352 ) Income tax benefit — — Loss after income tax from discontinued operations $ — $ (768,352 ) Carrying amounts of assets and liabilities disposed Cash $ — $ 17,970 Inventories — 6,000 Other current assets — 6,100 Trade and other payables — (793 ) Total proceeds from sale $ — $ 29,277 Impairment cost During the process of the sale of Gameday, various assets of Gameday that were unwanted by the acquirer were assessed to determine their future value or ability to be sold. Specifically, these assets included specialist or customised plant and equipment, capitalised intangible assets, and the recovery of receivables. For each of these assets it was determined that the future value was negligible and for each the contribution to the total impairment cost recorded during the fiscal year ended 30 June 2020 is set out below: (i) Plant and equipment Original Accumulated Book value $ 76,136 $ (32,221 ) $ 43,915 (A) (ii) Intangible assets Original Accumulated Book value $ 116,731 $ (89,042 ) $ 27,689 (B) (iii) Receivables Original Recoverable Book value $ 11,635 $ (250 ) $ 11,385 (C) Impairment cost (A+B+C) $ 82,989 |
Inventory
Inventory | 12 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Inventories Text Block Abstract | |
Inventory | 13. Inventory Consolidated 30 June 30 June Current Medicinal cannabis products in-transit $ — $ 183,159 Total inventory $ — $ 183,159 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Other Current Liabilities Text Block Abstract | |
Other current liabilities | 15. Other current liabilities Consolidated 30 June 30 June Provision for sales refunds (1) $ — $ 116,645 $ — $ 116,645 (1) Under the terms of the sale agreement for the disposal of the devices business (refer to note 6) the Company is liable to pay to the buyer for any refunds related to devices sold that refunded after 30 June 2020. The Company recorded and estimated amount as of 30 June 2020. In the fiscal year ended 30 June 2021, the Company reached a settlement that they would no longer be liable for refunds given the historical lag associated with returns. After which, the Company recorded the remaining balance as other income. Provision for sales refunds Reconciliation: Year Ended Carrying value as at 1 July 2020 $ 116,645 Repayments made (101,161 ) Settlement of liability recorded in other income (15,484 ) Balance at 30 June 2021 $ — |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | ||
Nature of Operations | Nature of Operations Incannex Healthcare Limited (the “Company”) and its consolidated subsidiaries (collectively, the “Group”) is a clinical stage pharmaceutical development company that is developing unique medicinal cannabis pharmaceutical products and psychedelic medicine therapies. The Company’s common shares trade on the Australian Securities Exchange (“ASX”). The Company’s registered office is at Suite 15, Level 12, 401 Docklands Drive, Docklands 3008, Victoria, Australia. For the fiscal year ended 30 June 2022, the Group incurred a total comprehensive loss after income tax of $14.9 million and had net cash outflows from operations of $12.8 million. The Group held total cash of $37.5 million as of 30 June 2022. | Nature of Operations Incannex Healthcare Limited (the “Company”) and its consolidated subsidiaries (collectively, the “Group”) is a clinical stage pharmaceutical development company that is developing unique medicinal cannabis pharmaceutical products and psychedelic medicine therapies. The Company’s common shares trade on the Australian Securities Exchange (“ASX”). The Company’s registered office is at Suite 105, 8 Century Circuit, Norwest 2153, NSW Australia. For the fiscal year ended 30 June 2021, the Group incurred a total comprehensive loss after income tax of $11.4 million and had net cash outflows from operations of $6.9 million. The Group held total cash of $9.1 million as of 30 June 2021. |
New or amended Accounting Standards and Interpretations adopted | New or amended Accounting Standards and Interpretations adopted The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the International Accounting Standards Board (‘IASB’) that are mandatory for the current reporting periods. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Historical cost convention The consolidated financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income and derivative financial instruments. Critical accounting estimates The preparation of the consolidated financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 2. Comparatives Where necessary, comparative information has been reclassified and repositioned for consistency with current year disclosures. | New or amended Accounting Standards and Interpretations adopted The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the International Accounting Standards Board (‘IASB’) that are mandatory for the current reporting periods. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Historical cost convention The consolidated financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income and derivative financial instruments. Critical accounting estimates The preparation of the consolidated financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 2. Comparatives Where necessary, comparative information has been reclassified and repositioned for consistency with current year disclosures. |
Statement of compliance | Statement of compliance These consolidated financial statements were authorised for issue by the Board of Directors in October 2022. The consolidated financial statements comply with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). | Statement of compliance These consolidated financial statements were authorised for issue by the Board of Directors in October 2021. The consolidated financial statements comply with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). |
Parent entity information | Parent entity information In accordance with IFRS 10 Consolidated Financial Statements | Parent entity information In accordance with IFRS 10 Consolidated Financial Statements |
Principles of consolidation | Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Company as at 30 June 2022 and 2021 and the results of all subsidiaries for the years then ended. Incannex Healthcare Limited and its subsidiaries together are referred to in these consolidated financial statements as the ‘Group’. Details of all controlled entities are set out in Note 19. Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Intercompany transactions between entities in the Group are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Where the Group loses control over a subsidiary, it derecognizes the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognized in equity. The Group recognizes the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. | Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Company as at 30 June 2021 and 2020 and the results of all subsidiaries for the years then ended. Incannex Healthcare Limited and its subsidiaries together are referred to in these consolidated financial statements as the ‘Group’. Details of all controlled entities are set out in Note 22. Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Intercompany transactions between entities in the Group are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Where the Group loses control over a subsidiary, it derecognizes the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognized in equity. The Group recognizes the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. |
Operating segments | Operating segments Operating segments are presented at note 4 using the ‘management approach’, where the information presented is on the same basis as the internal reports provided to the Chief Executive Officer. The Chief Executive Officer is responsible for the allocation of resources to operating segments and assessing their performance. | Operating segments Operating segments are presented using the ‘management approach’, where the information presented is on the same basis as the internal reports provided to the Chief Executive Officer. The Chief Executive Officer is responsible for the allocation of resources to operating segments and assessing their performance. |
Foreign currency translation | Foreign currency translation The consolidated financial statements are presented in Australian dollars, which is the Company’s functional and presentation currency. | Foreign currency translation The consolidated financial statements are presented in Australian dollars, which is the Company’s functional and presentation currency. |
Foreign currency transactions | Foreign currency transactions Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. | Foreign currency transactions Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. |
Revenue recognition | Revenue recognition The Company recognizes revenue to depict the transfer of goods and services to clients in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services by applying the following steps: ● Identify the contract with a client; ● Identify the performance obligations in the contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations; and ● Recognize revenue when, or as, the Company satisfies a performance obligation. Revenue may be earned over time as the performance obligations are satisfied or at a point in time which is when the entity has earned a right to payment, the customer has possession of the asset and the related significant risks and rewards of ownership, and the customer has accepted the asset. The Company’s arrangements with clients can include multiple performance obligations. When contracts involve various performance obligations, the Company evaluates whether each performance obligation is distinct and should be accounted for as a separate unit of accounting under IFRS 15, Revenue from Contracts with Customers. The Company determines the standalone selling price by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include discounting practices, the size and volume of our transactions, our marketing strategy, historical sales, and contract prices. The determination of standalone selling prices is made through consultation with and approval by management, taking into consideration our go-to-market strategy. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes in relative standalone selling prices. The Company disaggregates revenue from contracts with customers based on the categories that most closely depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. During the years ended 30 June 2022 and 2021, the Company recognized revenue from only one such category, being cannabinoid oils sales. The Company receives payment from its clients after invoicing within the normal 28-day commercial terms. If a client is specifically identified as a credit risk, recognition of revenue is stopped except to the extent of fees that have already been collected. Other income Other income is recognized when it is received or when the right to receive it is established. Other income primarily consists of grant income and interest income. Interest income Interest revenue 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. | Revenue recognition The Company’s revenues were generated from the sale of pharmaceutical Medicinal Cannabis products through the Special Access Scheme in Australia. Revenue comprises the fair value of the consideration received, or receivable and it is shown net of tax and discounts. The Company also earned revenue from the sale of dentist products through e-commerce website, however, the Company discontinued this segment on 30 June 2020. The Company also earned revenue from the sale of the cannabinoid oil products through Cannvalate Pty Ltd under a distribution agreement (“Distribution Agreement”) entered into with Cannvalate in March 2019 and terminated in June 2021. The Company recorded revenue from this contract on a gross basis in compliance with IFRS 15. In particular, IFRS 15-B35B states, “ When (or as) an entity that is a principal satisfies a performance obligation, the entity recognizes revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred.” The Company recognizes revenue t o depict the transfer of goods and services to clients in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods and services by applying the following steps: ● Identify the contract with a client; ● Identify the performance obligations in the contract; ● Determine the transaction price; ● Allocate the transaction price to the performance obligations; and ● Recognize revenue when, or as, the Company satisfies a performance obligation. Revenue may be earned over time as the performance obligations are satisfied or at a The Company’s arrangements with clients can include multiple performance obligations. When contracts involve various performance obligations, the Company evaluates whether each performance obligation is distinct and should be accounted for as a separate unit of accounting under IFRS 15, Revenue from Contracts with Customers. The Company determines the standalone selling price by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include discounting practices, the size and volume of our transactions, our marketing strategy, historical sales, and contract prices. The determination of standalone selling prices is made through consultation with and approval by management, taking into consideration our go-to-market strategy. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes in relative standalone selling prices. The Company disaggregates revenue from contracts with customers based on the categories that most closely depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. During the years ended 30 June 2021 and 2020, the Company recognized revenue from only one such category, being cannabinoid oils sales. As stated in Note 4 to these consolidated financial statements, the Company previously recognized revenue from oral and dental devices, although these operations have been discontinued. All sales are made within Australia and the Company has not disaggregated revenue based on geography. The Company receives payment from its clients after invoicing within the normal 28-day commercial terms. If a client is specifically identified as a credit risk, recognition of revenue is stopped except to the extent of fees that have already been collected. Other income Other income is recognized when it is received or when the right to receive it is established. Other income primarily consists of grant income and interest income. |
Income tax | Income tax The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognized for prior reporting years, where applicable. Deferred tax assets and liabilities are recognized for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: ● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or ● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled, and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognized for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The carrying amount of recognized and unrecognized deferred tax assets are reviewed at each reporting date. Deferred tax assets recognized are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognized deferred tax assets are recognized to the extent that it is probable that there are future taxable profits available to recover the asset. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously. | Income tax The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognized for prior reporting years, where applicable. Deferred tax asset s and liabilities are recognized for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: ● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or ● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled, and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognized for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The carrying amount of recognized and unrecognized deferred tax assets are reviewed at each reporting date. Deferred tax assets recognized are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognized deferred tax assets are recognized to the extent that it is probable that there are future taxable profits available to recover the asset. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously. |
Government grants | Government grants Income from government grants is recognized only when the Company has reasonable assurance that the grants will be received, and the conditions of the grants will be complied with. Income from Government grants is recognized on a systematic basis over the periods in which the Company recognizes as expenses the related costs for which the grants are intended to compensate. Government grants relate to Australian Federal Government’s COVID-19 support package of a “Cash Flow Boost” for eligible organisations, supporting small and medium sized organisations. | Government grants Income from government grants is recognized only when the Company has reasonable assurance that the grants will be received, and the conditions of the grants will be complied with. Income from Government grants is recognized on a systematic basis over the periods in which the Company recognizes as expenses the related costs for which the grants are intended to compensate. Government grants relate to Australian Federal Government’s COVID-19 support package of a “Cash Flow Boost” for eligible organisations, supporting small and medium sized organisations. |
Current and non-current classification | Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group’s normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when: it is either expected to be settled in the Group’s normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non-current. | Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group’s normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when: it is either expected to be settled in the Group’s normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non-current. |
Cash | Cash Cash and deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. | Cash Cash and deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. |
Trade and other receivables | Trade and other receivables Trade receivables are initially recognized at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are due for settlement within 30 days. The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue. Other receivables are recognized at amortised cost, less any allowance for expected credit losses. | Trade and other receivables Trade receivables are initially recognized at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are due for settlement within 30 days. The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue. Other receivables are recognized at amortised cost, less any allowance for expected credit losses. |
Other financial assets | Other financial assets Other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided. Financial assets are derecognized when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all a financial asset, its carrying value is written off. | Other financial assets Other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided. Financial assets are derecognized when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all a financial asset, its carrying value is written off. Impairment of financial assets The Group recognizes a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group’s assessment at the end of each reporting period as to whether the financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset’s lifetime expected credit losses. The amount of expected credit loss recognized is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. Impairment of non-financial assets Non-financial assets are subject to impairment test whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of the non-financial asset exceeds its recoverable amount (i.e. the higher of value in use and fair value less costs to dispose), the asset is written down and impairment charge is recognized accordingly. Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the asset’s cash-generating unit (i.e. the smallest group of assets to which the asset belongs that generates cash inflow that is largely independent of cash inflows from other assets). An impairment loss allocated to an asset, is reversed only if there have been changes in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. Reversal of an impairment loss, as above, is limited to the lower of the carrying amount of the asset that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the asset in prior years and the asset’s recoverable amount. After an impairment of non-financial asset is recognized, the Company examines at each reporting date whether there are indications that the impairment which was recognized in the past no longer exists or should be reduced. The reversal of impairment loss of an asset is recognized in profit or loss. |
Intangible assets | Intangibles Research and development Research costs are expensed in the period in which they are incurred. Development costs are capitalised when it is probable that the project will be a success considering its commercial and technical feasibility; the Group is able to use or sell the asset; the Group has sufficient resources and intent to complete the development; and its costs can be measured reliably. Capitalised development costs are amortised on a straight-line basis over the period of their expected benefit, being their finite life of 10 years. The Company has not capitalised any development costs for the years ended June 30, 2022 and 2021. | Intangible assets In connection with the discontinued operations (Note 6), the Company’s intangible assets future value was deemed negligible and recorded a impairment expense for the carrying value during the financial year ended 30 June 2020. As such, value of intangible assets was nil as of 30 June 2021 and 2020. Research and development Research costs are expensed in the period in which they are incurred. Development costs are capitalised when it is probable that the project will be a success considering its commercial and technical feasibility; the Group is able to use or sell the asset; the Group has sufficient resources and intent to complete the development; and its costs can be measured reliably. Capitalised development costs are amortised on a straight-line basis over the period of their expected benefit, being their finite life of 10 years. The Company has no capitalised any development costs for the years ended June 30, 2021 and 2020. |
Trade and other payables | Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial years and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. | Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial years and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. |
Provisions | Provisions Provisions are recognized when the Group has a present (legal or constructive) obligation as a result of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognized as a finance cost. | Provisions Provisions are recognized when the Group has a present (legal or constructive) obligation as a result of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognized as a finance cost. |
Employee benefits | Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled. Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Retirement benefit obligations All employees of the Group are entitled to superannuation contributions in accordance with Australian law. Contributions to employees’ nominated superannuation plans are expensed in the period in which they are incurred. Share-based payments Equity-settled compensation benefits are provided to employees. Equity-settled transactions are awards of shares, performance rights or options over shares, that are provided to employees in exchange for the rendering of services. The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to receive payment. Inputs into the Black-Scholes option pricing models used to calculate fair value are classified as level three inputs under the fair value hierarchy of IFRS 13. No account is taken of any other vesting conditions. The cost of equity-settled transactions are recognized as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognized in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognized in previous periods. Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied. If equity-settled awards are modified, as a minimum an expense is recognized as if the modification has not been made. An additional expense is recognized, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification. If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the vesting period, any remaining expense for the award is recognized over the remaining vesting period, unless the award is forfeited. If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognized immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification. | Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled. Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Share-based payments Equity-settled compensation benefits are provided to employees. Equity-settled transactions are awards of shares, performance rights or options over shares, that are provided to employees in exchange for the rendering of services. The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using either the trinomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to receive payment. Inputs into the trinomial and Black-Scholes option pricing models used to calculate fair value are classified as level three inputs under the fair value hierarchy of IFRS 13. No account is taken of any other vesting conditions. The cost of equity-settled transactions are recognized as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognized in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognized in previous periods. Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied. If equity-settled awards are modified, as a minimum an expense is recognized as if the modification has not been made. An additional expense is recognized, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification. If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the vesting period, any remaining expense for the award is recognized over the remaining vesting period, unless the award is forfeited. If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognized immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification. |
Fair value measurement | Fair value measurement When an asset, liability or equity instrument, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or an equity instrument or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset, liability or equity instrument, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Assets, liabilities and equity instruments measured at fair value are classified into three levels, using a fair value hierarchy that reflects the signi ficance of the inputs used in making the measurements. For assets and liabilities measured at fair value after initial recognition, classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are described as follows: ● Level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities; ● Level 2 — valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and ● Level 3 — valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data. | Fair value measurement When an asset, liability or equity instrument, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or an equity instrument or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset, liability or equity instrument, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Assets, liabilities and equity instruments measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. For assets and liabilities measured at fair value after initial recognition, classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are described as follows: ● Level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities; ● Level 2 — valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and ● Level 3 — valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data. |
Issued capital | Issued capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. | Issued capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
Dividends | Dividends Dividends are recognized when declared during the financial years. | Dividends Dividends are recognized when declared during the financial years. |
Loss per share | Loss per share Basic loss per share Basic loss per share is calculated by dividing the profit attributable to the owners of Incannex Healthcare Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial years, adjusted for bonus elements in ordinary shares issued during the financial years. These values are set out in Note 6. Diluted loss per share Diluted loss per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. These values are set out in Note 6. | Loss per share Basic loss per share Basic loss per share is calculated by dividing the profit attributable to the owners of Incannex Healthcare Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial years, adjusted for bonus elements in ordinary shares issued during the financial years. These values are set out in Note 7. Diluted loss per share Diluted loss per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. These values are set out in Note 7. |
Goods and Services Tax (‘GST’) and other similar taxes | Goods and Services Tax (‘GST’) and other similar taxes Revenues, expenses and assets are recognized net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognized as part of the cost of the acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from the tax authority is included in other receivables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flow. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority. | Goods and Services Tax (‘GST’) and other similar taxes Revenues, expenses and assets are recognized net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognized as part of the cost of the acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from the tax authority is included in other receivables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flow. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority. |
New Accounting Standards not yet adopted | New Accounting Standards not yet adopted International Financial Reporting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting periods ended 30 June 2022 and 2021. | New Accounting Standards not yet adopted International Financial Reporting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting periods ended 30 June 2021 and 2020. The Group’s assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the Group, are set out below. Amendments to IAS 1: Classification of Liabilities as Current or Non-current The amendment clarifies the requirements relating to determining if a liability should be presented as current or non-current in the statement of financial position. Under the new requirement, the assessment of whether a liability is presented as current or non-current is based on the contractual arrangements in place as at the reporting date and does not impact the amount or timing of recognition. The amendment applies retrospectively for annual reporting periods beginning on or after January 1, 2022. The Company is currently evaluating the potential impact of these amendments on the Company’s consolidated financial statements. Amendments to IAS 37: Onerous Contracts and the cost of Fulfilling a Contract The amendment specifies that ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract or an allocation of other costs that relate directly to fulfilling contracts. The amendment is effective for annual periods beginning on or after January 1, 2022, with early application permitted. The Company is currently evaluating the potential impact of these amendments on the Company’s consolidated financial statements. IFRS 17 Insurance Contracts IFRS 17 Insurance Contracts has been issued, but is not yet mandatorily required to be adopted by the Company. The Company will be required to adopt IFRS 17 during the financial year ending 30 June 2024. The Directors do not expect the adoption of IFRS 17 to have a material impact on the financial position or performance of the Company once adopted. |
Discontinued operations | Discontinued operations A discontinued operation is a component of the Group that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately on the face of the statement of comprehensive income. | |
Inventory | Inventory Inventory raw materials, work in progress and finished goods are stated at the lower of cost and net realisable value on a ‘first in first out’ basis. Cost comprises of direct materials and delivery costs, direct labour, import duties and other taxes, an appropriate proportion of variable and fixed overhead expenditure based on normal operating capacity. Costs of purchased inventory are determined after deducting rebates and discounts received or receivable. Stock in transit is stated at the lower of cost and net realisable value. Cost comprises of purchase and delivery costs, net of rebates and discounts received or receivable. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. | |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. In connection with the discontinued operations (Note 6), the Company’s property, plant and equipment future value was deemed negligible and recorded a impairment expense for the carrying value during the financial year ended 30 June 2020. As such, value of property, plant and equipment was nil as of 30 June 2021 and 2020. Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant, and equipment (excluding land) over their expected useful lives as follows: Buildings 40 years Leasehold improvements 3 – 10 years Plant and equipment 3 – 7 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter. An item of property, plant and equipment is derecognized upon disposal or when there is no future economic benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. | |
Lease liabilities | Lease liabilities A lease liability is recognized at the commencement date of a lease. The lease liability is initially recognized at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index, or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. No lease liabilities are recognized for leases where the lease term is 12 months or less at the commencement date and for leases where the underlying value is deemed to be of low value. The costs of any such leases are recorded within expenses as incurred. | |
Finance costs | Finance costs Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the period in which they are incurred. |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Disclosure of Significant Accounting Policies Text Block Abstract | |
Schedule of straight-line basis to write off the net cost of each item of property, plant, and equipment | Buildings 40 years Leasehold improvements 3 – 10 years Plant and equipment 3 – 7 years |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Research And Development Expense Text Block Abstract | ||
Schedule of revenue | Consolidated 2022 2021 (a) Revenue (point in time) $ $ Cannabinoid oils sales - 1,897,596 - 1,897,596 (b) Other income Income from other arrangements - 35,569 Government grants - 37,500 Interest 6,271 2,679 Refundable R&D tax offset 782,383 - 788,654 75,748 | Consolidated Year Ended Year Ended (a) Revenue (point in time) Cannabinoid oils sales $ 1,897,596 $ 604,884 $ 1,897,596 $ 604,884 (b) Other income Income from other arrangements (1) $ 35,569 $ 123,125 Government grants (2) 37,500 89,500 Interest 2,679 4,545 $ 75,748 $ 217,170 (c) Expenses Executive directors’ remuneration $ 600,043 $ 539,923 (1) Income from other arrangements Income from other arrangements for the fiscal year ended 30 June 2021 relates to sales of Gameday Mouthguards, for orders fulfilled from sales prior to the Company selling the Gameday segment (Note 6). In addition, the Company also recognized other income for settlement of sales refunds in December 2020. Management did not deem the amounts to be material and therefore are not included in the discontinued operations during the fiscal year ended 30 June 2021. Income from other arrangements for the fiscal year ended 30 June 2020 was a result of a transaction entered into with AXIM Biotechnologies, in consideration of the terms of the full understanding 6,800,000 IHL shares were issued in full consideration of the intended transaction. AXIM was not able to fulfil their part of the transaction, and the contract was terminated. In lieu of returning the shares, the Company received cash. As this revenue is not derived from any normal trading transactions, it has been accounted for as a separate line item in the accounts. The return of these shares and the subsequent income is a one off income item for IHL and has not resulted in a change in equity per the consolidated statement of financial position. (2) Notes for Government grants Other income from government grants relates to assistance provided by the Australian Government in relation to the COVID-19 pandemic. The Company has reasonable assurance that it has complied with the conditions attaching to these grants. There were no unfulfilled conditions or other contingencies attaching to these grants as at 30 June 2021 and 2020. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Entitys Operating Segments Text Block Abstract | ||
Schedule of revenue and expenses for the period and assets and liabilities | 30 June 2022 Psychedelic products Cannabinoid Products Corporate Consolidated $ $ $ $ Revenue from external customers - - - - Interest revenue - 96 6,175 6,271 Other revenue - 782,383 - 782,383 Other expenses (883,708 ) (4,642,796 ) (10,166,059 ) (15,692,563 ) Segment loss after income tax (883,708 ) (3,860,317 ) (10,159,884 ) (14,903,909 ) Segment assets 56,058 263,731 37,559,819 37,879,608 Segment liabilities (354,310 ) (577,819 ) (1,078,404 ) (2,010,533 ) 30 June 2021 Psychedelic products Cannabinoid Products Corporate Consolidated $ $ $ $ Revenue from external customers - 1,897,596 1 - 1,897,596 Interest revenue - 6 2,673 2,679 Other revenue - - 73,069 73,069 Other expenses (768,316 ) (5,202,371 ) (7,375,456 ) (13,346,143 ) Segment loss after income tax (768,316 ) (3,304,769 ) (7,299,714 ) (11,372,799 ) Segment assets 2,000 104,267 9,222,528 9,328,795 Segment liabilities - (86,522 ) (668,527 ) (755,049 ) 1 Of the total revenue from pharmaceuticals in each year, 100% was through Cannvalate Pty Ltd’s distribution network. | Oral and Psychedelic Medicinal Unallocated Consolidated For the year ended 30 June 2021 Revenue from external customers $ — $ — $ 1,897,596 (1) $ — $ 1,897,596 Interest income — — 6 2,673 2,679 Other income — — — 73,069 73,069 Depreciation — — — — — Amortisation — — — — — Other expenses — (768,316 ) (5,202,371 ) (7,375,456 ) (13,346,143 ) Segment loss after income tax $ — $ (768,316 ) $ (3,304,769 ) $ (7,299,714 ) $ (11,372,799 ) Segment assets $ — $ 2,000 $ 104,267 $ 9,222,528 $ 9,328,795 Segment liabilities $ — $ (86,522 ) $ (668,527 ) $ (755,049 ) For the year ended 30 June 2020 Revenue from external customers $ 718,656 $ — $ 604,884 (1) $ — $ 1,323,540 Interest income 8 — 2 4,543 4,553 Other income 140,816 — 212,625 — 353,441 Depreciation (14,854 ) — — — (14,854 ) Amortisation (21,688 ) — — — (21,688 ) Other expenses (1,591,290 ) — (2,899,761 ) (1,851,577 ) (6,342,628 ) Segment loss after income tax $ (768,352 ) $ — $ (2,082,250 ) $ (1,847,034 ) $ (4,697,636 ) Segment assets $ — $ — $ 662,414 $ 3,573,665 $ 4,236,079 Segment liabilities $ — $ — $ (567,423 ) $ (504,228 ) $ (1,071,651 ) (1) Of the total revenue from medicinal cannabis in the fiscal year ended 30 June 2021 and 2020, 100% was through Cannvalate Pty Ltd’s distribution network. |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of Income Tax Text Block Abstract | ||
Schedule of the prima facie income tax (expense)/benefit on pre-tax accounting (loss)/profit from operations reconcile | Consolidated 2022 2021 $ $ Accounting loss before tax (14,903,909 ) (11,372,799 ) Income tax benefit at the applicable tax rate of 25% (2021: 26%) 3,725,977 2,956,928 Non-deductible expenses (564,872 ) (1,192,112 ) Non-assessable income 195,596 - Deferred tax assets not recognized (3,356,701 ) (1,764,816 ) Income tax benefit - - Unrecognized Deferred Tax Asset Deferred tax asset not recognized in the financial statements: Unused tax losses 24,845,264 20,867,835 Net unrecognized tax benefit at 25% (2021: 26%) 6,211,316 5,425,637 | Consolidated Year Ended Year Ended Accounting loss before tax $ (11,372,799 ) $ (4,697,636 ) Income tax benefit at the applicable tax rate of 26% (2020: 27.5%) $ 2,956,928 $ 1,291,850 Non-deductible expenses at the applicable tax rate of 26% (2020:27.5%) (1,192,112 ) (155,498 ) Deferred tax assets not recognized (1,764,816 ) (1,136,352 ) Income tax benefit $ — $ — Deductible temporary differences for which no deferred tax asset has been recognized Unused tax losses at 26% (2020: 27.5%) $ 5,425,637 $ 3,872,022 Net unrecognized tax benefit $ 5,425,637 $ 3,872,022 |
Loss per share (Tables)
Loss per share (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Profit or loss [abstract] | ||
Schedule of loss per share | Consolidated 2022 2021 $ $ Basic loss per share - cents per share (1.25 ) (1.16 ) Basic loss per share The loss and weighted average number of ordinary shares used in the calculation of basic loss per share is as follows: Total comprehensive loss for the year (14,903,909 ) (11,372,799 ) - Weighted average number of ordinary shares (number) 1,191,154,011 976,931,338 | Year Ended Year Ended Basic loss per share– continuing and discontinued operations – cents per share $ (1.16 ) $ (0.69 ) Basic loss per share– continuing operations – cents per share $ (1.16 ) $ (0.57 ) Basic loss per share The loss and weighted average number of ordinary shares used in the calculation of basic loss per share is as follows: – Loss from continuing and discontinued operations ($) $ (11,372,799 ) $ (4,697,636 ) – Loss from continuing operations ($) $ (11,372,799 ) $ (3,929,284 ) – Weighted average number of ordinary shares (number) 976,931,338 684,035,399 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of cash and cash equivalents [Abstract] | ||
Schedule of cash and cash equivalents | Consolidated 2022 2021 $ $ Cash at bank and on hand 37,500,931 9,123,617 37,500,931 9,123,617 Cash at bank earns interest at floating rates based on daily bank deposit rates. Reconciliation of loss for the year to net cash flows from operating activities: Loss after income tax (14,903,909 ) (11,372,799 ) Non-cash based expenses: Share-based payments 1,464,550 600,043 Depreciation and amortisation - - Non-cash expense for investor relation services - 3,781,344 Release of Gameday reserve of sales refund - (15,484 ) Other non-cash expenses (594,394 ) 91,354 Changes in net assets and liabilities: (Increase)/Decrease in receivables (92,320 ) 214,903 (Increase)/Decrease in inventory - 183,159 Decrease in other current assets 53,447 172 Increase/(Decrease) in trade payables and accrued expenses 1,111,080 (291,311 ) Increase/(Decrease) in other liabilities 154,173 (101,161 ) Cash flows used in operations (12,807,373 ) (6,909,780 ) | Year Ended Year Ended Loss after income tax $ (11,372,799 ) $ (4,697,636 ) Non-cash based expenses(income): Share based payments 600,043 565,448 Depreciation and amortisation — 36,542 Non-cash expense for investor relation services 3,781,344 — Release of Gameday reserve of sales refund (15,484 ) — Non-cash expense for annual leave 91,354 97,221 Changes in net assets and liabilities: Decrease/(increase) in receivables 214,903 (315,484 ) Decrease/(increase) in inventory 183,159 (30,355 ) Decrease in other current assets 172 2,928 (Increase)/decrease in trade and other payables (291,311 ) 464,223 Decrease in other liabilities (101,161 ) (30,221 ) Cash flows used in operations $ (6,909,780 ) $ (3,907,334 ) |
Schedule of cash | Consolidated 30 June 30 June Cash at bank and on hand $ 9,123,617 $ 3,603,390 $ 9,123,617 $ 3,603,390 |
Trade and Other Receivables (_2
Trade and Other Receivables (Current) (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of Trade and Other Receivables Text Block Abstract | ||
Schedule of trade and other receivables (Current) | Current Consolidated 2022 2021 $ $ Other receivables - 53,447 GST recoverable 294,717 115,641 294,717 169,088 | Consolidated 30 June 30 June Current Trade receivables $ — $ 225,125 Other receivables 53,447 51,026 GST recoverable 115,641 137,117 $ 169,088 $ 413,268 |
Other Assets (current) (Tables)
Other Assets (current) (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of other assets current [Abstract] | ||
Schedule of other assets (current) | Prepayments 45,911 29,784 Office rental bond 24,124 - Prepayment clinical trial insurance 13,925 6,306 83,960 36,090 | Consolidated 30 June 30 June Prepayments $ 29,784 $ 11,083 Office rental bond — 25,179 Prepayment clinical trial insurance $ 6,306 $ — $ 36,090 $ 36,262 |
Trade and Other Payables (Cur_2
Trade and Other Payables (Current) (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of trade and other payables Current [Abstract] | ||
Schedule of trade and other payables (Current) | Trade payables 1,300,696 233,117 Accrued expenses 415,449 381,717 Employee leave entitlements 294,388 140,215 2,010,533 755,049 | |
Schedule of trade and other payables (current) | Consolidated 30 June 30 June Trade payables $ 233,117 $ 590,099 Accrued expenses 381,717 316,046 Employee leave entitlements 140,215 48,861 $ 755,049 $ 955,006 | |
Schedule of employee leave entitlements reconciliation | Year Ended Carrying value as at 1 July 2020 $ 48,861 Leave accrued by employees during the year 91,354 Balance at 30 June 2021 $ 140,215 Year Ended Carrying value as at 1 July 2019 $ 36,899 Leave accrued by employees during the year 11,962 Balance at 30 June 2020 $ 48,861 |
Issued Capital (Tables)
Issued Capital (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of issued capital [Abstract] | ||
Schedule of issued capital | Consolidated 2022 2021 $ $ 86,586,794 45,852,107 | Consolidated 30 June 30 June Ordinary shares $ 45,852,107 $ 34,192,043 |
Schedule of ordinary shares movements during years | Consolidated 2022 2022 $ No. of shares (a) Ordinary shares - movements during year At start of year 45,852,107 1,068,411,224 Issues of new shares – placements 400,000 5,000,000 Issues of new shares – share based payments 1 - 10,000,000 Exercise of options 40,274,243 207,650,638 Shares in lieu of advisor fees 450,000 1,272,166 Share issue costs (389,555 ) - At end of year 86,586,794 1,292,334,028 1 The fair value of shares issued to employees and Directors expensed during the period has been recorded through the share base payment equity reserve refer to note 13 for further details. | Year ended Year ended At beginning of year 748,654,489 581,897,040 Issues of new shares – placements — 114,663,460 Issues of new shares – share based payments 2,952,619 5,750,000 Conversion of performance rights 30,303,593 11,916,668 Exercise of options 286,500,523 34,427,321 At end of year 1,068,411,224 748,654,489 |
Reserves (Tables)
Reserves (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of Reserves Within Equity Text Block Abstract | ||
Schedule of equity based premium reserve | Equity based premium reserve Consolidated 2022 2021 $ $ Balance at 1 July 2021 6,612,641 1,490,588 Options issued to advisors 1 - 4,522,010 Equity instruments issued to management and directors 1,464,550 600,043 At 30 June 2022 8,077,191 6,612,641 1 During the year ended 30 June 2021, 40,000,000 options exercisable at $0.15, $0.20, and $.25 were issued to consultants for investor relation services. In addition, 30,164,690 options exercisable at $0.08 were issued as consideration for broker support of the exercise of the 262m listed IHLOB options series. During the year ended 30 June 2020, 33,000,000 options exercisable at $0.08 and expiring on 30 September 2021, were issued to brokers who supported the July 2019 capital raisings. These options have been valued using a Black-Scholes option model with inputs being grant date share price of $0.04 risk-free rate of 0.24% and volatility of 92%. | Consolidated Year Ended Year Ended Balance at start of year $ 1,490,588 $ 451,643 Options issued to advisors (1) 4,522,010 449,093 Options issued to Cannvalate Pty Ltd (2) — 244,403 Equity instruments issued to management and directors 600,043 345,449 Balance at end of year $ 6,612,641 $ 1,490,588 (1) During the year ended 30 June 2021, 40,000,000 options exercisable at $0.15, $0.20, and $.25 were issued to consultants for investor relation services. In addition, 30,164,690 options exercisable at $0.08 were issued as consideration for broker support of the exercise of the 262m listed IHLOB options series (see Note 12). During the year ended 30 June 2020, 33,000,000 options exercisable at $0.08 and expiring on 30 September 2021, were issued to brokers who supported the July 2019 capital raisings. These options have been valued using a Black-Scholes option model with inputs being grant date share price of $0.04 risk-free rate of 0.24% and volatility of 92%. (2) On 9 August 2019, at a general meeting of shareholders, the issue of 120,000,000 options to Cannvalate Pty Ltd as remuneration for Cannvalate’s management of the Company’s clinical program was approved. This amount was initially recorded as a payable as at 30 June 2019 and transferred to the reserve in the year ended 30 June 2020. The options were valued using Black-Scholes option model with inputs being grant date share price of $0.02; risk-free rate of 1.07% and volatility of 59%. |
Share Based Payments (Tables)
Share Based Payments (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Share Based Payment Arrangements Text Block Abstract | ||
Schedule of share options were issued to employees and consultants as share based payments | Options Number Grant 2 Expiry Exercise Total Options granted to Directors Unlisted Options 1,399,999 09-Jun-22 01-Jul-25 $ 0.26 $ 298,200 Unlisted Options 1,399,999 09-Jun-22 01-Jul-26 $ 0.31 $ 309,400 Unlisted Options 1,400,002 09-Jun-22 01-Jul-27 $ 0.35 $ 324,800 Unlisted Options 1,399,999 09-Jun-22 01-Jul-26 $ 0.26 $ 326,200 Unlisted Options 1,399,999 09-Jun-22 01-Jul-27 $ 0.31 $ 334,600 Unlisted Options 1,400,002 09-Jun-22 01-Jul-28 $ 0.35 $ 347,200 Options granted to employees Unlisted Options 533,333 29-Apr-22 01-Jul-25 $ 0.26 $ 139,200 Unlisted Options 533,333 29-Apr-22 01-Jul-26 $ 0.31 $ 143,467 Unlisted Options 533,334 29-Apr-22 01-Jul-27 $ 0.35 $ 148,800 Total options 10,000,000 $ 2,371,867 Options Number Grant 2 Expiry Exercise Total Options granted to third parties Unlisted Options 10,000,000 20-Nov-20 20-Nov-23 $ 0.15 $ 647,348 Unlisted Options 10,000,000 20-Nov-20 20-Nov-23 $ 0.25 $ 527,766 Unlisted Options 10,000,000 25-Feb-21 20-Nov-23 $ 0.20 $ 1,352,588 Unlisted Options 10,000,000 25-Feb-21 20-Nov-23 $ 0.25 $ 1,253,140 Unlisted Options 30,164,690 2-Oct-20 30-Sep-21 $ 0.08 $ 740,665 Total options 70,164,690 $ 4,521,507 | |
Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes | $0.26 Options $0.31 Options $0.35 Options $0.26 Options $0.31 Options $0.35 Options $0.26 Options $0.31 Options $0.35 Options 01-Jul-25 01-Jul-26 01-Jul-27 01-Jul-26 01-Jul-27 01-Jul-28 01-Jul-25 01-Jul-26 01-Jul-27 Number 1,399,999 1,399,999 1,400,002 1,399,999 1,399,999 1,400,002 533,333 533,333 533,334 Expected volatility (%) 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % 80 % Risk-free interest rate (%) 3.12 % 3.33 % 3.33 % 3.33 % 3.33 % 3.33 % 2.71 % 2.90 % 2.90 % Expected life of option (years) 3.06 4.06 5.06 4.06 5.06 6.07 3.18 4.18 5.18 Exercise price (cents) 26 31 35 26 31 35 26 31 35 Grant date share price (cents) 35 35 35 35 35 35 41 41 41 Vesting date 30-Jun-22 30-Jun-23 30-Jun-24 30-Jun-23 30-Jun-24 30-Jun-25 01-Jul-22 01-Jul-23 01-Jul-24 $0.08 $0.15 $0.25 $0.20 $0.25 30-Sep-21 20-Nov-23 20-Nov-23 20-Nov-23 20-Nov-23 Number 30,164,690 10,000,000 10,000,000 10,000,000 10,000,000 Expected volatility (%) 100 % 100 % 100 % 101 % 101 % Risk-free interest rate (%) 0.17 % 0.11 % 0.11 % 0.12 % 0.12 % Expected life of option (years) 1 3 3 2.7 2.7 Exercise price (cents) 8 15 25 20 25 Grant date share price (cents) 7.7 11.5 11.5 22 22 Vesting date 2-Oct-20 20-Nov-20 20-Nov-20 25-Feb-21 25-Feb-21 | $0.08 $0.15 $0.25 $0.20 $0.25 Number 30,164,690 10,000,000 10,000,000 10,000,000 10,000,000 Dividend yield (%) — % — % — % — % — % Expected volatility (%) 86 % 100 % 100 % 101 % 101 % Risk-free interest rate (%) 0.17 % 0.11 % 0.11 % 0.12 % 0.12 % Expected life of option (years) 1 3 3 2.7 2.7 Exercise price (cents) 8 15 25 20 25 Grant date share price (cents) 7.7 11.5 11.5 22 22 Vesting date 2-Oct-2020 20-Nov-2020 20-Nov-2020 25-Feb-2021 25-Feb-2021 $0.05 $0.05 $0.05 $0.20 Number 750,000 750,000 750,000 2,000,000 Dividend yield (%) — % — % — % — % Expected volatility (%) 92 % 92 % 92 % 93 % Risk-free interest rate (%) 0.39 % 0.48 % 0.58 % 0.25 % Expected life of option (years) 5 6 7 1.25 Exercise price (cents) 5.0 5.0 5 20 Grant date share price (cents) 4.8 4.8 4.8 4.8 Vesting date 30-Jun-2020 30-Jun-2021 30-Jun-2022 Refer (a) below |
Schedule of number of performance shares and performance rights | Security Description $0.$0.08 Options Balance at start of year Granted by the Company Converted or Expired Balance at end of year 30 June 2022 30-Sep-21 - - - - 30 June 2021 30-Sep-21 41,553,593 - (41,553,593 ) - | Security Description Balance at Granted by Converted or Balance at Performance Rights (1) 41,553,593 — (41,553,593 ) — Security Description Balance at Granted by Converted or Balance at Performance Rights (1) 24,166,668 32,303,593 (14,916,668 ) 41,553,593 Performance Shares (2) 20,000,002 — (20,000,002 ) — |
Schedule of table summarizes company’s stock option activity | Number of Weighted Weighted Outstanding as of 30 June 2019 262,960,728 $ 0.040 1.255 Granted 412,169,705 $ 0.139 Exercised (34,427,321 ) $ 0.031 Outstanding as of 30 June 2020 640,703,112 $ 0.104 0.748 Granted 72,414,690 $ 0.152 Exercised (286,500,523 ) $ 0.044 Expired or forfeited (88,000,000 ) $ 0.104 Outstanding as of 30 June 2021 338,617,279 $ 0.166 0.568 Exercisable as of 30 June 2021 337,117,279 $ 0.167 | |
Schedule of consultants as share based payments | Number Grant Expiry Exercise Total Options granted to third parties Unlisted options 10,000,000 20-Nov-2020 20-Nov-2023 $ 0.15 $ 647,348 Unlisted options 10,000,000 20-Nov-2020 20-Nov-2023 $ 0.25 $ 527,766 Unlisted options 10,000,000 25-Feb-2021 20-Nov-2023 $ 0.20 $ 1,352,588 Unlisted options 10,000,000 25-Feb-2021 20-Nov-2023 $ 0.25 $ 1,253,140 Unlisted options 30,164,690 02-Oct-2020 30-Sep-2021 $ 0.08 $ 740,665 Total options granted to third parties 70,164,690 $ 4,521,507 Options granted to employees Unlisted options 750,000 01-Jul-2020 30-Jun-2025 $ 0.05 $ 25,432 Unlisted options 750,000 01-Jul-2020 30-Jun-2026 $ 0.05 $ 27,450 Unlisted options 750,000 01-Jul-2020 30-Jun-2027 $ 0.05 $ 29,040 Total options granted to employees 2,250,000 $ 81,922 Total options 72,414,690 $ 4,603,429 Number Grant Expiry Exercise Total Options granted to third parties Unlisted options 10,000,000 8-Aug-2019 01-Jan-2020 $ 0.02 $ 85,251 Unlisted options 10,000,000 8-Aug-2019 01-May-2020 $ 0.03 $ 51,531 Unlisted options 12,000,000 8-Aug-2019 01-May-2020 $ 0.04 $ 34,966 Unlisted options 14,000,000 19-Aug-2019 01-Dec-2020 $ 0.06 $ 30,297 Unlisted options 16,000,000 19-Aug-2019 01-Dec-2020 $ 0.08 $ 18,248 Unlisted options 18,000,000 19-Aug-2019 01-Dec-2020 $ 0.10 $ 11,606 Unlisted options 20,000,000 19-Aug-2019 01-Dec-2020 $ 0.12 $ 7,700 Unlisted options 20,000,000 19-Aug-2019 01-Dec-2020 $ 0.14 $ 4,804 Unlisted options 89,919,705 Various (1) 30-Sep-2021 $ 0.08 $ 449,067 Total options granted to third parties 209,919,705 $ 693,470 Options granted to employees Unlisted options 750,000 26-Jun-2020 30-Jun-2025 $ 0.05 $ 24,817 Unlisted options 750,000 26-Jun-2020 30-Jun-2026 $ 0.05 $ 26,424 Unlisted options 750,000 26-Jun-2020 30-Jun-2027 $ 0.05 $ 27,754 Unlisted options 200,000,000 26-Jun-2020 30-Sep-2021 $ 0.20 $ 306,299 Total options granted to employees 202,250,000 $ 385,294 Total options 412,169,705 $ 1,078,764 |
Remuneration of Auditors (Table
Remuneration of Auditors (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Auditors Remuneration Text Block Abstract | ||
Schedule of remuneration of auditors | Consolidated Consolidated 2022 2021 $ $ Audit or review of the financial reports of the company Amounts received & receivable by the auditor: Audit services – PKF Brisbane Audit 85,000 - Audit services – HLB Mann Judd 23,138 37,785 Audit services – Withum Smith & Brown (US auditor) 357,208 287,975 Other services – Withum Smith & Brown (US auditor) - - 465,346 325,760 | Consolidated Year Ended Year Ended Audit or review of the financial reports of the Company Amounts received & receivable by the auditor: Audit services – HLB Mann Judd $ 37,785 $ 37,000 Audit services – Withum Smith & Brown (US auditor) 287,975 — Total $ 325,760 $ 37,000 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Financial Instruments Text Block Abstract | ||
Schedule of contractual liabilities | Description Less than 1 month 1 to 3 months 3 months to 1 year 1 to 5 Total Consolidated $ $ $ $ $ Payables & accruals 1,828,527 - - - 1,828,527 1,828,527 - - - 1,828,527 Description Less than 1 month 1 to 3 months 3 months to 1 year 1 to 5 Total Consolidated $ $ $ $ $ Payables & accruals 614,834 - - - 614,834 614,834 - - - 614,834 | Description Less than 1 to 3 3 months to 1 to 5 Total Consolidated Payables & accruals $ 614,834 $ — $ — $ — $ 614,834 $ 614,834 $ — $ — $ — $ 614,834 Description Less than 1 to 3 3 months to 1 to 5 Total Consolidated Payables & accruals $ 906,145 $ — $ — $ — $ 906,145 $ 906,145 $ — $ — $ — $ 906,145 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Disclosure of Commitments and Contingent Liabilities Text Block Abstract | |
Schedule of future minimum payments | Consolidated 30 June 30 June Within one year $ 56,496 $ 9,697 One to three years 37,916 — Total minimum contract payments $ 94,412 $ 9,697 |
Key Management Personnel Comp_2
Key Management Personnel Compensation and Related Party Disclosure (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of key management personnel compensation [Abstract] | ||
Schedule of key management personnel compensation | 2022 2021 $ $ Short-term employee benefits 1,333,992 761,231 Post-employment benefits 47,547 38,877 Share based payments 1,028,634 672,699 Total KMP compensation 2,410,173 1,472,807 | Consolidated Year Ended Year Ended Short-term employee benefits $ 761,231 $ 638,201 Share based payments (1) 672,699 565,448 Post-employment benefits 38,877 29,985 Total KMP compensation $ 1,472,807 $ 1,233,634 |
Parent Entity Disclosures (Tabl
Parent Entity Disclosures (Tables) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Parent Entity Disclosures Abstract | ||
Schedule of statement of financial position | Statement of financial position 2022 2021 Financial Position $ $ Current assets 37,559,819 9,222,528 Non-Current assets - - Total assets 37,559,819 9,222,528 Current liabilities (1,078,404 ) (668,527 ) Non-current liabilities - - Total liabilities (1,078,404 ) (668,527 ) Net assets 36,481,415 8,554,001 Issued capital 86,586,794 45,852,107 Reserves 8,077,191 6,612,641 Accumulated losses (58,182,570 ) (43,910,747 ) Shareholders’ equity 36,481,415 8,554,001 | 30 June 30 June Financial Position as at 30 June 2021 and 2020 Current assets $ 9,222,528 $ 3,573,665 Non-Current assets (i) — — Total assets 9,222,528 3,573,665 Current liabilities (668,527 ) (504,228 ) Non-current liabilities — — Total liabilities (668,527 ) (504,228 ) Net assets $ 8,554,001 $ 3,069,437 Share capital $ 45,852,107 $ 34,192,043 Reserves 6,612,641 1,490,588 Deficit (43,910,747 ) (32,613,194 ) Shareholders’ equity $ 8,554,001 $ 3,069,437 (i) In the year ended 30 June 2020, the loan to the subsidiary company has been fully impaired. |
Discontinued operations (Tables
Discontinued operations (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Non Current Assets Held For Sale And Discontinued Operations Text Block Abstract | |
Schedule of financial performance information | Consolidated Year Ended Year Ended Revenue from external customers $ — $ 718,656 Interest income — 8 Other income — 140,816 Product costs — (589,570 ) Administration expense — (38,985 ) Advertising and promotion — (218,865 ) Depreciation — (14,854 ) Amortisation — (21,688 ) Loss on disposal of property, plant and equipment — (13,654 ) Impairment cost — (82,989 ) Occupancy expenses — (81,493 ) Salaries and employee benefit expense — (565,734 ) Loss before income tax — (768,352 ) Income tax benefit — — Loss after income tax from discontinued operations $ — $ (768,352 ) Carrying amounts of assets and liabilities disposed Cash $ — $ 17,970 Inventories — 6,000 Other current assets — 6,100 Trade and other payables — (793 ) Total proceeds from sale $ — $ 29,277 |
Schedule of plant and equipment | Original Accumulated Book value $ 76,136 $ (32,221 ) $ 43,915 (A) Original Accumulated Book value $ 116,731 $ (89,042 ) $ 27,689 (B) Original Recoverable Book value $ 11,635 $ (250 ) $ 11,385 (C) Impairment cost (A+B+C) $ 82,989 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Inventories Text Block Abstract | |
Schedule of inventory | Consolidated 30 June 30 June Current Medicinal cannabis products in-transit $ — $ 183,159 Total inventory $ — $ 183,159 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Other Current Liabilities Text Block Abstract | |
Schedule of other current liabilities | Consolidated 30 June 30 June Provision for sales refunds (1) $ — $ 116,645 $ — $ 116,645 |
Schedule of provision for sales refunds reconciliation | Year Ended Carrying value as at 1 July 2020 $ 116,645 Repayments made (101,161 ) Settlement of liability recorded in other income (15,484 ) Balance at 30 June 2021 $ — |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of Significant Accounting Policies Text Block Abstract | ||
Total comprehensive loss after income tax | $ 14.9 | $ 11.4 |
Net cash outflows from operations | 12.8 | 6.9 |
Held total cash | $ 37.5 | $ 9.1 |
Intangible assets finite useful life | 10 years | 10 years |
Revenue (Details)
Revenue (Details) | 12 Months Ended |
Jun. 30, 2020 shares | |
Disclosure Of Research And Development Expense Text Block Abstract | |
Shares issued | 6,800,000 |
Revenue (Details) - Schedule of
Revenue (Details) - Schedule of revenue - USD ($) | 12 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |||
Schedule Of Revenue Abstract | |||||
Cannabinoid oils sales | $ 1,897,596 | $ 604,884 | |||
Total revenue | 1,897,596 | 604,884 | |||
(b) Other income | |||||
Income from other arrangements | 35,569 | [1] | 123,125 | [1] | |
Government grants | 37,500 | [2] | 89,500 | [2] | |
Interest | 6,271 | 2,679 | 4,545 | ||
Refundable R&D tax offset | 782,383 | ||||
Total other income | $ 788,654 | $ 75,748 | $ 217,170 | ||
[1]Income from other arrangements Income from other arrangements for the fiscal year ended 30 June 2021 relates to sales of Gameday Mouthguards, for orders fulfilled from sales prior to the Company selling the Gameday segment (Note 6). In addition, the Company also recognized other income for settlement of sales refunds in December 2020. Management did not deem the amounts to be material and therefore are not included in the discontinued operations during the fiscal year ended 30 June 2021. Income from other arrangements for the fiscal year ended 30 June 2020 was a result of a transaction entered into with AXIM Biotechnologies, in consideration of the terms of the full understanding 6,800,000 IHL shares were issued in full consideration of the intended transaction. AXIM was not able to fulfil their part of the transaction, and the contract was terminated. In lieu of returning the shares, the Company received cash. As this revenue is not derived from any normal trading transactions, it has been accounted for as a separate line item in the accounts. The return of these shares and the subsequent income is a one off income item for IHL and has not resulted in a change in equity per the consolidated statement of financial position.[2]Notes for Government grants Other income from government grants relates to assistance provided by the Australian Government in relation to the COVID-19 pandemic. The Company has reasonable assurance that it has complied with the conditions attaching to these grants. There were no unfulfilled conditions or other contingencies attaching to these grants as at 30 June 2021 and 2020. |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure Of Entitys Operating Segments Text Block Abstract | |||
Number of operating segments | 3 | 1 | 2 |
Number of geographical segment | 1 | 1 | |
Percentage of total revenue from medicinal cannabis | 100% | 100% | 100% |
Segment Information (Details) -
Segment Information (Details) - Schedule of revenue and expenses for the period and assets and liabilities - USD ($) | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Segment Information (Details) - Schedule of revenue and expenses for the period and assets and liabilities [Line Items] | ||||
Other revenue | $ 1,897,596 | $ 604,884 | ||
Segment loss after income tax | (14,903,909) | (11,372,799) | (4,697,636) | |
Consolidated [Member] | ||||
Segment Information (Details) - Schedule of revenue and expenses for the period and assets and liabilities [Line Items] | ||||
Revenue from external customers | 1,897,596 | |||
Interest revenue | 6,271 | 2,679 | ||
Other revenue | 782,383 | 73,069 | ||
Other expenses | (15,692,563) | (13,346,143) | ||
Segment loss after income tax | (14,903,909) | (11,372,799) | ||
Segment assets | 37,879,608 | 9,328,795 | ||
Segment liabilities | (2,010,533) | (755,049) | ||
Psychedelic products [Member] | ||||
Segment Information (Details) - Schedule of revenue and expenses for the period and assets and liabilities [Line Items] | ||||
Revenue from external customers | ||||
Interest revenue | ||||
Other revenue | ||||
Other expenses | (883,708) | (768,316) | ||
Segment loss after income tax | (883,708) | (768,316) | ||
Segment assets | 56,058 | 2,000 | ||
Segment liabilities | (354,310) | |||
Cannabinoid Products [Member] | ||||
Segment Information (Details) - Schedule of revenue and expenses for the period and assets and liabilities [Line Items] | ||||
Revenue from external customers | 1,897,596 | [1] | ||
Interest revenue | 96 | 6 | ||
Other revenue | 782,383 | |||
Other expenses | (4,642,796) | (5,202,371) | ||
Segment loss after income tax | (3,860,317) | (3,304,769) | ||
Segment assets | 263,731 | 104,267 | ||
Segment liabilities | (577,819) | (86,522) | ||
Corporate [Member] | ||||
Segment Information (Details) - Schedule of revenue and expenses for the period and assets and liabilities [Line Items] | ||||
Revenue from external customers | ||||
Interest revenue | 6,175 | 2,673 | ||
Other revenue | 73,069 | |||
Other expenses | (10,166,059) | (7,375,456) | ||
Segment loss after income tax | (10,159,884) | (7,299,714) | ||
Segment assets | 37,559,819 | 9,222,528 | ||
Segment liabilities | $ (1,078,404) | $ (668,527) | ||
[1] Of the total revenue from pharmaceuticals in each year, 100% was through Cannvalate Pty Ltd’s distribution network. |
Income tax (Details) - Schedule
Income tax (Details) - Schedule of income tax benefit on pre-tax accounting loss from operations reconciles to the inco - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Income Tax Benefit On Pre Tax Accounting Loss From Operations Reconciles To The Inco Abstract | |||
Accounting loss before tax | $ (14,903,909) | $ (11,372,799) | $ (4,697,636) |
Income tax benefit at the applicable tax rate of 25% (2021: 26%) | 3,725,977 | 2,956,928 | 1,291,850 |
Non-deductible expenses | (564,872) | (1,192,112) | (155,498) |
Non-assessable income | 195,596 | ||
Deferred tax assets not recognized | (3,356,701) | (1,764,816) | (1,136,352) |
Income tax benefit | |||
Unrecognized Deferred Tax Asset | |||
Unused tax losses | 24,845,264 | 20,867,835 | |
Net unrecognized tax benefit at 25% (2021: 26%) | $ 6,211,316 | $ 5,425,637 | $ 3,872,022 |
Income tax (Details) - Schedu_2
Income tax (Details) - Schedule of income tax benefit on pre-tax accounting loss from operations reconciles to the inco (Parentheticals) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Income Tax Benefit On Pre Tax Accounting Loss From Operations Reconciles To The Inco Abstract | |||
tax rate | 25% | 26% | 27.50% |
Tax benefit percentage | 25% | 26% |
Loss per share (Details) - Sche
Loss per share (Details) - Schedule of loss per share - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Loss Per Share Abstract | |||
Basic loss per share - cents per share | $ (1.25) | $ (1.16) | $ (0.69) |
The loss and weighted average number of ordinary shares used in the calculation of basic loss per share is as follows: | |||
Total comprehensive loss for the year | $ (14,903,909) | $ (11,372,799) | $ (4,697,636) |
- Weighted average number of ordinary shares (number) | 1,191,154,011 | 976,931,338 | 684,035,399 |
Dividends (Details)
Dividends (Details) | Jun. 30, 2021 USD ($) |
Dividends [Abstract] | |
Dividend |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of cash and cash equivalents [Abstract] | |||
Share-based payment | $ 600,043 | $ 565,448 | |
Non-cash transactions | $ 740,666 | ||
Options issued (in Shares) | 30,164,690 | ||
Exercise options series | $ 262,000,000 | ||
Other current liabilities | $ 244,403 | $ 244,403 |
Cash and Cash Equivalents (De_2
Cash and Cash Equivalents (Details) - Schedule of cash and cash equivalents - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Cash And Cash Equivalents Abstract | |||
Cash at bank and on hand | $ 37,500,931 | $ 9,123,617 | $ 3,603,390 |
Total | 37,500,931 | 9,123,617 | 3,603,390 |
Reconciliation of loss for the year to net cash flows from operating activities: | |||
Loss after income tax | (14,903,909) | (11,372,799) | (4,697,636) |
Non-cash based expenses: | |||
Share-based payments | 1,464,550 | 600,043 | 565,448 |
Depreciation and amortisation | 36,542 | ||
Non-cash expense for investor relation services | 3,781,344 | ||
Release of Gameday reserve of sales refund | (15,484) | ||
Other non-cash expenses | (594,394) | 91,354 | 97,221 |
Changes in net assets and liabilities: | |||
(Increase)/Decrease in receivables | (92,320) | 214,903 | (315,484) |
(Increase)/Decrease in inventory | 183,159 | (30,355) | |
Decrease in other current assets | 53,447 | 172 | 2,928 |
Increase/(Decrease) in trade payables and accrued expenses | 1,111,080 | (291,311) | 464,223 |
Increase/(Decrease) in other liabilities | 154,173 | (101,161) | (30,221) |
Cash flows used in operations | $ (12,807,373) | $ (6,909,780) | $ (3,907,334) |
Trade and Other Receivables (_3
Trade and Other Receivables (Current) (Details) - Schedule of trade and other receivables (Current) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule Of Trade And Other Receivables Current Abstract | |||
Other receivables | $ 53,447 | $ 51,026 | |
GST recoverable | 294,717 | 115,641 | 137,117 |
Total trade and other receivables (Current) | $ 294,717 | $ 169,088 | $ 413,268 |
Other Assets (current) (Details
Other Assets (current) (Details) - Schedule of other assets (current) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Other Assets Current Abstract | |||
Prepayments | $ 45,911 | $ 29,784 | $ 11,083 |
Office rental bond | 24,124 | 25,179 | |
Prepayment clinical trial insurance | 13,925 | 6,306 | |
Other assets (current) | $ 83,960 | $ 36,090 | $ 36,262 |
Trade and Other Payables (Cur_3
Trade and Other Payables (Current) (Details) - Schedule of trade and other payables (Current) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Trade And Other Payables Current Abstract | |||
Trade payables | $ 1,300,696 | $ 233,117 | $ 590,099 |
Accrued expenses | 415,449 | 381,717 | 316,046 |
Employee leave entitlements | 294,388 | 140,215 | 48,861 |
Total | $ 2,010,533 | $ 755,049 | $ 955,006 |
Issued Capital (Details)
Issued Capital (Details) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of issued capital [Abstract] | ||
Shareholder vote | one | one |
Issued Capital (Details) - Sche
Issued Capital (Details) - Schedule of issued capital - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule Of Issued Capital Abstract | |||
Ordinary shares | $ 86,586,794 | $ 45,852,107 | $ 34,192,043 |
Issued Capital (Details) - Sc_2
Issued Capital (Details) - Schedule of ordinary shares movements during years - USD ($) | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Schedule Of Ordinary Shares Movements During Years Abstract | ||||
At start of year | $ 45,852,107 | |||
Number of shares, At start of year | 1,068,411,224 | 748,654,489 | 581,897,040 | |
Issues of new shares – placements | $ 400,000 | |||
Number of shares, Issues of new shares – placements | 5,000,000 | 114,663,460 | ||
Issues of new shares – share based payments1 | [1] | |||
Number of shares, Issues of new shares – share based payments1 | [1] | 10,000,000 | ||
Exercise of options | $ 40,274,243 | |||
Number of shares, Exercise of options | 207,650,638 | 286,500,523 | 34,427,321 | |
Shares in lieu of advisor fees | $ 450,000 | |||
Number of shares, Shares in lieu of advisor fees | 1,272,166 | |||
Share issue costs | $ (389,555) | |||
Number of shares, Share issue costs | ||||
At end of year | $ 86,586,794 | $ 45,852,107 | ||
Number of shares, At end of year | 1,292,334,028 | 1,068,411,224 | 748,654,489 | |
[1] The fair value of shares issued to employees and Directors expensed during the period has been recorded through the share base payment equity reserve refer to note 13 for further details. |
Reserves (Details)
Reserves (Details) - $ / shares | 12 Months Ended | ||
Aug. 09, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reserves (Details) [Line Items] | |||
Options exercisable shares (in Shares) | 120,000,000 | 40,000,000 | 33,000,000 |
Investor issued per share | $ 0.08 | $ 0.08 | |
Share price | $ 0.02 | $ 0.04 | |
Risk-free percentage | 1.07% | 0.24% | |
Volatility percentage | 59% | 92% | |
Investors [Member] | |||
Reserves (Details) [Line Items] | |||
Investor issued per share | 0.15 | ||
Investor one [Member] | |||
Reserves (Details) [Line Items] | |||
Investor issued per share | 0.2 | ||
Investor two [Member] | |||
Reserves (Details) [Line Items] | |||
Investor issued per share | $ 25 | ||
In addition [Member] | |||
Reserves (Details) [Line Items] | |||
Options exercisable shares (in Shares) | 30,164,690 |
Reserves (Details) - Schedule o
Reserves (Details) - Schedule of equity based premium reserve - USD ($) | 12 Months Ended | |||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | ||||
Schedule Of Equity Based Premium Reserve Abstract | ||||||
Balance beginning | $ 6,612,641 | $ 1,490,588 | $ 451,643 | |||
Options issued to advisors | [1] | 4,522,010 | [1],[2] | 449,093 | [2] | |
Equity instruments issued to management and directors | 1,464,550 | 600,043 | ||||
Balance ending | $ 8,077,191 | $ 6,612,641 | $ 1,490,588 | |||
[1] During the year ended 30 June 2021, 40,000,000 options exercisable at $0.15, $0.20, and $.25 were issued to consultants for investor relation services. In addition, 30,164,690 options exercisable at $0.08 were issued as consideration for broker support of the exercise of the 262m listed IHLOB options series. During the year ended 30 June 2020, 33,000,000 options exercisable at $0.08 and expiring on 30 September 2021, were issued to brokers who supported the July 2019 capital raisings. These options have been valued using a Black-Scholes option model with inputs being grant date share price of $0.04 risk-free rate of 0.24% and volatility of 92%. During the year ended 30 June 2021, 40,000,000 options exercisable at $0.15, $0.20, and $.25 were issued to consultants for investor relation services. In addition, 30,164,690 options exercisable at $0.08 were issued as consideration for broker support of the exercise of the 262m listed IHLOB options series (see Note 12). During the year ended 30 June 2020, 33,000,000 options exercisable at $0.08 and expiring on 30 September 2021, were issued to brokers who supported the July 2019 capital raisings. These options have been valued using a Black-Scholes option model with inputs being grant date share price of $0.04 risk-free rate of 0.24% and volatility of 92%. |
Share Based Payments (Details)
Share Based Payments (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 26, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share Based Payments (Details) [Line Items] | ||||
Total value (in Dollars) | $ 3,588,000 | $ 469,324 | ||
Unrecognized compensation cost (in Dollars) | $ 2,743,854 | $ 116,680 | ||
Exercise price of options outstanding | $ 0.08 | $ 0.35 | ||
Weighted-average period term | 1 year 4 months 20 days | 1 year | ||
Performance rights converted into ordinary share (in Shares) | 30,303,593 | 30,303,593 | 11,916,668 | |
Performance rights expired (in Shares) | 11,250,000 | 11,250,000 | 3,000,000 | |
Fair value of options granted | $ 0.1 | $ 0.22 | ||
Equity capital raisings, description | (1)22,368,422 options were issued to participants of the July 2019 equity capital raisings attaching to shares subscribed for under those raisings and 33,000,000 options were issued to brokers who supported those equity capital raisings. A further 34,551,283 options were issued to participants of the October 2019 capital raising attaching to shares subscribed for under that raising. | |||
Options, description | (a)The options vest upon the shares having a closing price of 20 cents per share or more for any 5 trading days at any time from the date of grant of the options until the expiry date of the options (30 September 2021). | |||
Performance rights were issued (in Shares) | 32,303,593 | |||
Grant date share price (in Shares) | 0.048 | |||
Risk-free rate | 0.25% | |||
Volatility percentage | 95% | |||
Performance rights (in Dollars) | $ 280,253 | $ 189,071 | ||
Performance rights share price | $ (0.048) | |||
Options [Member] | ||||
Share Based Payments (Details) [Line Items] | ||||
Exercise price of options outstanding | $ 0.05 | $ 0.25 | ||
Option contract [member] | ||||
Share Based Payments (Details) [Line Items] | ||||
Unrecognized compensation cost (in Dollars) | $ 1,853,263 | |||
Black-Scholes Options Model [Member] | ||||
Share Based Payments (Details) [Line Items] | ||||
Fair value of the equity-settled share options | 0.05 | |||
Trinomial Option Model [Member] | ||||
Share Based Payments (Details) [Line Items] | ||||
Fair value of the equity-settled share options | $ 0.2 |
Share Based Payments (Details)
Share Based Payments (Details) - Schedule of share options were issued to employees and consultants as share based payments - Options [Member] - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Options granted to employees | ||
Total options | 10,000,000 | 70,164,690 |
Total options | $ 2,371,867 | $ 4,521,507 |
Unlisted options [Member] | Options granted to Directors [Member] | ||
Options granted to Directors | ||
Number of options granted to Directors | 1,399,999 | |
Grant date of options granted to Directors | Jun. 09, 2022 | |
Expiry date of options granted to Directors | Jul. 01, 2025 | |
Exercise price of options granted to Directors | $ 0.26 | |
Total fair value of options granted to Directors | $ 298,200 | |
Unlisted options [Member] | Options granted to employees [Member] | ||
Options granted to employees | ||
Number of options granted to employees | 533,333 | |
Grant date of uoptions granted to employees | Apr. 29, 2022 | |
Expiry date of options granted to employees | Jul. 01, 2025 | |
Exercise price of options granted to employees | $ 0.26 | |
Total fair value of options granted to employees | $ 139,200 | |
Unlisted options [Member] | Options granted to third parties [Member] | ||
Options granted to third parties | ||
Number of options granted to third parties | 10,000,000 | |
Grant date of options granted to third parties | Nov. 20, 2020 | |
Expiry date of options granted to third parties | Nov. 20, 2023 | |
Exercise price of options granted to third parties | $ 0.15 | |
Total fair value of options granted to third parties | $ 647,348 | |
Unlisted options One [Member] | Options granted to Directors [Member] | ||
Options granted to Directors | ||
Number of options granted to Directors | 1,399,999 | |
Grant date of options granted to Directors | Jun. 09, 2022 | |
Expiry date of options granted to Directors | Jul. 01, 2026 | |
Exercise price of options granted to Directors | $ 0.31 | |
Total fair value of options granted to Directors | $ 309,400 | |
Unlisted options One [Member] | Options granted to employees [Member] | ||
Options granted to employees | ||
Number of options granted to employees | 533,333 | |
Grant date of uoptions granted to employees | Apr. 29, 2022 | |
Expiry date of options granted to employees | Jul. 01, 2026 | |
Exercise price of options granted to employees | $ 0.31 | |
Total fair value of options granted to employees | $ 143,467 | |
Unlisted options One [Member] | Options granted to third parties [Member] | ||
Options granted to third parties | ||
Number of options granted to third parties | 10,000,000 | |
Grant date of options granted to third parties | Nov. 20, 2020 | |
Expiry date of options granted to third parties | Nov. 20, 2023 | |
Exercise price of options granted to third parties | $ 0.25 | |
Total fair value of options granted to third parties | $ 527,766 | |
Unlisted options Two [Member] | Options granted to Directors [Member] | ||
Options granted to Directors | ||
Number of options granted to Directors | 1,400,002 | |
Grant date of options granted to Directors | Jun. 09, 2022 | |
Expiry date of options granted to Directors | Jul. 01, 2027 | |
Exercise price of options granted to Directors | $ 0.35 | |
Total fair value of options granted to Directors | $ 324,800 | |
Unlisted options Two [Member] | Options granted to employees [Member] | ||
Options granted to employees | ||
Number of options granted to employees | 533,334 | |
Grant date of uoptions granted to employees | Apr. 29, 2022 | |
Expiry date of options granted to employees | Jul. 01, 2027 | |
Exercise price of options granted to employees | $ 0.35 | |
Total fair value of options granted to employees | $ 148,800 | |
Unlisted options Two [Member] | Options granted to third parties [Member] | ||
Options granted to third parties | ||
Number of options granted to third parties | 10,000,000 | |
Grant date of options granted to third parties | Feb. 25, 2021 | |
Expiry date of options granted to third parties | Nov. 20, 2023 | |
Exercise price of options granted to third parties | $ 0.2 | |
Total fair value of options granted to third parties | $ 1,352,588 | |
Unlisted options Three [Member] | Options granted to Directors [Member] | ||
Options granted to Directors | ||
Number of options granted to Directors | 1,399,999 | |
Grant date of options granted to Directors | Jun. 09, 2022 | |
Expiry date of options granted to Directors | Jul. 01, 2026 | |
Exercise price of options granted to Directors | $ 0.26 | |
Total fair value of options granted to Directors | $ 326,200 | |
Unlisted options Three [Member] | Options granted to third parties [Member] | ||
Options granted to third parties | ||
Number of options granted to third parties | 10,000,000 | |
Grant date of options granted to third parties | Feb. 25, 2021 | |
Expiry date of options granted to third parties | Nov. 20, 2023 | |
Exercise price of options granted to third parties | $ 0.25 | |
Total fair value of options granted to third parties | $ 1,253,140 | |
Unlisted options Four [Member] | Options granted to Directors [Member] | ||
Options granted to Directors | ||
Number of options granted to Directors | 1,399,999 | |
Grant date of options granted to Directors | Jun. 09, 2022 | |
Expiry date of options granted to Directors | Jul. 01, 2027 | |
Exercise price of options granted to Directors | $ 0.31 | |
Total fair value of options granted to Directors | $ 334,600 | |
Unlisted options Four [Member] | Options granted to third parties [Member] | ||
Options granted to third parties | ||
Number of options granted to third parties | 30,164,690 | |
Grant date of options granted to third parties | Oct. 02, 2020 | |
Expiry date of options granted to third parties | Sep. 30, 2021 | |
Exercise price of options granted to third parties | $ 0.08 | |
Total fair value of options granted to third parties | $ 740,665 | |
Unlisted options Five [Member] | Options granted to Directors [Member] | ||
Options granted to Directors | ||
Number of options granted to Directors | 1,400,002 | |
Grant date of options granted to Directors | Jun. 09, 2022 | |
Expiry date of options granted to Directors | Jul. 01, 2028 | |
Exercise price of options granted to Directors | $ 0.35 | |
Total fair value of options granted to Directors | $ 347,200 |
Share Based Payments (Details_2
Share Based Payments (Details) - Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes - $ / shares | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
$0.26 Options 01-Jul-25 [member] | ||
Share Based Payments (Details) - Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes [Line Items] | ||
Number | 1,399,999 | |
Expected volatility (%) | 80% | |
Risk-free interest rate (%) | 3.12% | |
Expected life of option (years) | 3 years 21 days | |
Exercise price (cents) | $ 26 | |
Grant date share price (cents) | $ 35 | |
Vesting date | 30-Jun-22 | |
$0.31 Options 01-Jul-26 [Member] | ||
Share Based Payments (Details) - Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes [Line Items] | ||
Number | 1,399,999 | |
Expected volatility (%) | 80% | |
Risk-free interest rate (%) | 3.33% | |
Expected life of option (years) | 4 years 21 days | |
Exercise price (cents) | $ 31 | |
Grant date share price (cents) | $ 35 | |
Vesting date | 30-Jun-23 | |
$0.35 Options 01-Jul-27 [Member] | ||
Share Based Payments (Details) - Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes [Line Items] | ||
Number | 1,400,002 | |
Expected volatility (%) | 80% | |
Risk-free interest rate (%) | 3.33% | |
Expected life of option (years) | 5 years 21 days | |
Exercise price (cents) | $ 35 | |
Grant date share price (cents) | $ 35 | |
Vesting date | 30-Jun-24 | |
$0.26 Options 01-Jul-26 [Member] | ||
Share Based Payments (Details) - Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes [Line Items] | ||
Number | 1,399,999 | |
Expected volatility (%) | 80% | |
Risk-free interest rate (%) | 3.33% | |
Expected life of option (years) | 4 years 21 days | |
Exercise price (cents) | $ 26 | |
Grant date share price (cents) | $ 35 | |
Vesting date | 30-Jun-23 | |
$0.31 Options 01-Jul-27 [Member] | ||
Share Based Payments (Details) - Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes [Line Items] | ||
Number | 1,399,999 | |
Expected volatility (%) | 80% | |
Risk-free interest rate (%) | 3.33% | |
Expected life of option (years) | 5 years 21 days | |
Exercise price (cents) | $ 31 | |
Grant date share price (cents) | $ 35 | |
Vesting date | 30-Jun-24 | |
$0.35 Options 01-Jul-28 [Member] | ||
Share Based Payments (Details) - Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes [Line Items] | ||
Number | 1,400,002 | |
Expected volatility (%) | 80% | |
Risk-free interest rate (%) | 3.33% | |
Expected life of option (years) | 6 years 25 days | |
Exercise price (cents) | $ 35 | |
Grant date share price (cents) | $ 35 | |
Vesting date | 30-Jun-25 | |
$0.26 Options 01-Jul-25 [Member] | ||
Share Based Payments (Details) - Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes [Line Items] | ||
Number | 533,333 | |
Expected volatility (%) | 80% | |
Risk-free interest rate (%) | 2.71% | |
Expected life of option (years) | 3 years 2 months 4 days | |
Exercise price (cents) | $ 26 | |
Grant date share price (cents) | $ 41 | |
Vesting date | 01-Jul-22 | |
$0.31 Options 01-Jul-26 [Member] | ||
Share Based Payments (Details) - Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes [Line Items] | ||
Number | 533,333 | |
Expected volatility (%) | 80% | |
Risk-free interest rate (%) | 2.90% | |
Expected life of option (years) | 4 years 2 months 4 days | |
Exercise price (cents) | $ 31 | |
Grant date share price (cents) | $ 41 | |
Vesting date | 01-Jul-23 | |
$0.35 Options 01-Jul-27 [Member] | ||
Share Based Payments (Details) - Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes [Line Items] | ||
Number | 533,334 | |
Expected volatility (%) | 80% | |
Risk-free interest rate (%) | 2.90% | |
Expected life of option (years) | 5 years 2 months 4 days | |
Exercise price (cents) | $ 35 | |
Grant date share price (cents) | $ 41 | |
Vesting date | 01-Jul-24 | |
$0.08 Options 30-Sep-21 [Member] | ||
Share Based Payments (Details) - Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes [Line Items] | ||
Number | 30,164,690 | |
Expected volatility (%) | 100% | |
Risk-free interest rate (%) | 0.17% | |
Expected life of option (years) | 1 year | |
Exercise price (cents) | $ 8 | |
Grant date share price (cents) | $ 7.7 | |
Vesting date | 2-Oct-20 | |
$0.15 Options 20-Nov-23 [Member] | ||
Share Based Payments (Details) - Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes [Line Items] | ||
Number | 10,000,000 | |
Expected volatility (%) | 100% | |
Risk-free interest rate (%) | 0.11% | |
Expected life of option (years) | 3 years | |
Exercise price (cents) | $ 15 | |
Grant date share price (cents) | $ 11.5 | |
Vesting date | 20-Nov-20 | |
$0.25 Options 20-Nov-23 [Member] | ||
Share Based Payments (Details) - Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes [Line Items] | ||
Number | 10,000,000 | |
Expected volatility (%) | 100% | |
Risk-free interest rate (%) | 0.11% | |
Expected life of option (years) | 3 years | |
Exercise price (cents) | $ 25 | |
Grant date share price (cents) | $ 11.5 | |
Vesting date | 20-Nov-20 | |
$0.20 Options 20-Nov-23 [Member] | ||
Share Based Payments (Details) - Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes [Line Items] | ||
Number | 10,000,000 | |
Expected volatility (%) | 101% | |
Risk-free interest rate (%) | 0.12% | |
Expected life of option (years) | 2 years 8 months 12 days | |
Exercise price (cents) | $ 20 | |
Grant date share price (cents) | $ 22 | |
Vesting date | 25-Feb-21 | |
$0.25 Options 20-Nov-23 [Member] | ||
Share Based Payments (Details) - Schedule of equity-settled share options granted is estimated as at the grant date Black-Scholes [Line Items] | ||
Number | 10,000,000 | |
Expected volatility (%) | 101% | |
Risk-free interest rate (%) | 0.12% | |
Expected life of option (years) | 2 years 8 months 12 days | |
Exercise price (cents) | $ 25 | |
Grant date share price (cents) | $ 22 | |
Vesting date | 25-Feb-21 |
Share Based Payments (Details_3
Share Based Payments (Details) - Schedule of number of performance shares and performance rights - shares | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Number Of Performance Shares And Performance Rights Abstract | ||
$0.$0.08 Options | 30-Sep-21 | 30-Sep-21 |
Balance at start of year | 41,553,593 | |
Granted by the Company | ||
Converted or Expired | (41,553,593) | |
Balance at end of year |
Remuneration of Auditors (Detai
Remuneration of Auditors (Details) - Schedule of remuneration of auditors - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Audit or review of the financial reports of the company | |||
Audit services – PKF Brisbane Audit | $ 85,000 | ||
Audit services – HLB Mann Judd | 23,138 | 37,785 | $ 37,000 |
Audit services – Withum Smith & Brown (US auditor) | 357,208 | 287,975 | |
Other services – Withum Smith & Brown (US auditor) | |||
Total | $ 465,346 | $ 325,760 | $ 37,000 |
Financial Instruments (Details)
Financial Instruments (Details) - Schedule of contractual liabilities - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Financial Instruments (Details) - Schedule of contractual liabilities [Line Items] | |||
Payables & accruals | $ 1,828,527 | $ 614,834 | $ 906,145 |
Total payables | 1,828,527 | 614,834 | 906,145 |
Less than 1 month [Member] | |||
Financial Instruments (Details) - Schedule of contractual liabilities [Line Items] | |||
Payables & accruals | 1,828,527 | 614,834 | 906,145 |
Total payables | 1,828,527 | 614,834 | 906,145 |
1 to 3 months [Member] | |||
Financial Instruments (Details) - Schedule of contractual liabilities [Line Items] | |||
Payables & accruals | |||
Total payables | |||
3 months to 1 year [Member] | |||
Financial Instruments (Details) - Schedule of contractual liabilities [Line Items] | |||
Payables & accruals | |||
Total payables | |||
1 to 5 years [Member] | |||
Financial Instruments (Details) - Schedule of contractual liabilities [Line Items] | |||
Payables & accruals | |||
Total payables |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Disclosure of Commitments and Contingent Liabilities Text Block Abstract | |
Commencement of agreement percentage | 50% |
Key Management Personnel Comp_3
Key Management Personnel Compensation and Related Party Disclosure (Details) - USD ($) | 12 Months Ended | |||
Aug. 09, 2019 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of key management personnel compensation [Abstract] | ||||
Fees paid | $ 407,824 | $ 97,976 | $ 145,200 | |
Reversal of expense | $ 72,656 | |||
Share options issued (in Shares) | 120,000,000 | 88,000,000 | ||
Total revenues, percentage | 100% | |||
Amounts payable to related parties | $ 229,889 |
Key Management Personnel Comp_4
Key Management Personnel Compensation and Related Party Disclosure (Details) - Schedule of key management personnel compensation - USD ($) | 12 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |||
Schedule Of Key Management Personnel Compensation Abstract | |||||
Short-term employee benefits | $ 1,333,992 | $ 761,231 | $ 638,201 | ||
Post-employment benefits | 47,547 | 38,877 | 29,985 | ||
Share based payments | 1,028,634 | 672,699 | [1] | 565,448 | [1] |
Total KMP compensation | $ 2,410,173 | $ 1,472,807 | $ 1,233,634 | ||
[1]The Company notes the amounts do not agree to the Consolidated Statements of Changes in Equity for the year ended 30 June 2021. The Company notes there was a reversal of expense in the amount of $72,656 related to 88,000,000 share options issued to Cannvalate Pty Ltd due to the options being forfeited. These options had been issued during financial year ended June 30, 2020. |
Details of the Controlled Ent_2
Details of the Controlled Entity (Details) - shares | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Incannex Pty Ltd [Member] | |||
Details of the Controlled Entity (Details) [Line Items] | |||
Increase (decrease) in number of ordinary shares issued (in Shares) | 1 | ||
Subsidiary | 100% | ||
Ordinary shares | 100% | ||
Psychennex Pty Ltd [Member] | |||
Details of the Controlled Entity (Details) [Line Items] | |||
Subsidiary | 100% | 100% | |
Incannex Healthcare Limited [Member] | |||
Details of the Controlled Entity (Details) [Line Items] | |||
Ordinary shares | 100% | ||
Gameday International Pty Ltd [Member] | |||
Details of the Controlled Entity (Details) [Line Items] | |||
Subsidiary | 100% |
Events Subsequent to Reportin_2
Events Subsequent to Reporting Date (Details) - USD ($) | Aug. 05, 2022 | Oct. 07, 2021 | Oct. 04, 2021 | Sep. 21, 2021 | Sep. 07, 2021 | Aug. 25, 2021 | Aug. 16, 2021 | Jul. 21, 2021 |
Disclosure Of Events After Reporting Period Text Block Abstract | ||||||||
Issued capital | 218,169,497 | |||||||
Issued ordinary shares | 6,852,322 | 11,427,616 | 61,311,557 | 7,345,833 | 9,201,186 | 239,103 | ||
Exercise price per share (in Dollars per share) | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | |
Receiving of proceeds (in Dollars) | $ 19,128 | |||||||
Additional ordinary shares | 2,739,662 | |||||||
Proceeds amount (in Dollars) | $ 548,186 | $ 4,904,925 | $ 736,095 | $ 219,173 | ||||
Total proceeds (in Dollars) | $ 5,114,109 | $ 4,587,667 | ||||||
Issued ordinary shares | 20,999,500 | 20,000,000 | ||||||
Exercise price per share (in Dollars per share) | $ 0.2 | $ 0.2 |
Parent Entity Disclosures (Deta
Parent Entity Disclosures (Details) | Jun. 30, 2021 USD ($) |
Parent Entity Disclosures Abstract | |
Contingent liabilities | |
Guarantees involving |
Parent Entity Disclosures (De_2
Parent Entity Disclosures (Details) - Schedule of statement of financial position - Parent [member] - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Condensed Financial Statements, Captions [Line Items] | ||
Current assets | $ 37,559,819 | $ 9,222,528 |
Non-Current assets | ||
Total assets | 37,559,819 | 9,222,528 |
Current liabilities | (1,078,404) | (668,527) |
Non-current liabilities | ||
Total liabilities | (1,078,404) | (668,527) |
Net assets | 36,481,415 | 8,554,001 |
Issued capital | 86,586,794 | 45,852,107 |
Reserves | 8,077,191 | 6,612,641 |
Accumulated losses | (58,182,570) | (43,910,747) |
Shareholders’ equity | $ 36,481,415 | $ 8,554,001 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of straight-line basis to write off the net cost of each item of property, plant, and equipment | 12 Months Ended |
Jun. 30, 2021 | |
Buildings [Member] | |
Significant Accounting Policies (Details) - Schedule of straight-line basis to write off the net cost of each item of property, plant, and equipment [Line Items] | |
Property plant and equipment useful lives | 40 years |
Leasehold improvements [Member] | Minimum [Member] | |
Significant Accounting Policies (Details) - Schedule of straight-line basis to write off the net cost of each item of property, plant, and equipment [Line Items] | |
Property plant and equipment useful lives | 3 years |
Leasehold improvements [Member] | Maximum [Member] | |
Significant Accounting Policies (Details) - Schedule of straight-line basis to write off the net cost of each item of property, plant, and equipment [Line Items] | |
Property plant and equipment useful lives | 10 years |
Plant and equipment [Member] | Minimum [Member] | |
Significant Accounting Policies (Details) - Schedule of straight-line basis to write off the net cost of each item of property, plant, and equipment [Line Items] | |
Property plant and equipment useful lives | 3 years |
Plant and equipment [Member] | Maximum [Member] | |
Significant Accounting Policies (Details) - Schedule of straight-line basis to write off the net cost of each item of property, plant, and equipment [Line Items] | |
Property plant and equipment useful lives | 7 years |
Revenue & expenses (Details) -
Revenue & expenses (Details) - Schedule of revenue & expenses - USD ($) | 12 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |||
Schedule Of Revenue Expenses Abstract | |||||
Cannabinoid oils sales | $ 1,897,596 | $ 604,884 | |||
Total revenue | 1,897,596 | 604,884 | |||
Income from other arrangements | 35,569 | [1] | 123,125 | [1] | |
Government grants | 37,500 | [2] | 89,500 | [2] | |
Interest | 6,271 | 2,679 | 4,545 | ||
Total other income | $ 788,654 | 75,748 | 217,170 | ||
Executive directors’ remuneration | $ 600,043 | $ 539,923 | |||
[1]Income from other arrangements Income from other arrangements for the fiscal year ended 30 June 2021 relates to sales of Gameday Mouthguards, for orders fulfilled from sales prior to the Company selling the Gameday segment (Note 6). In addition, the Company also recognized other income for settlement of sales refunds in December 2020. Management did not deem the amounts to be material and therefore are not included in the discontinued operations during the fiscal year ended 30 June 2021. Income from other arrangements for the fiscal year ended 30 June 2020 was a result of a transaction entered into with AXIM Biotechnologies, in consideration of the terms of the full understanding 6,800,000 IHL shares were issued in full consideration of the intended transaction. AXIM was not able to fulfil their part of the transaction, and the contract was terminated. In lieu of returning the shares, the Company received cash. As this revenue is not derived from any normal trading transactions, it has been accounted for as a separate line item in the accounts. The return of these shares and the subsequent income is a one off income item for IHL and has not resulted in a change in equity per the consolidated statement of financial position.[2]Notes for Government grants Other income from government grants relates to assistance provided by the Australian Government in relation to the COVID-19 pandemic. The Company has reasonable assurance that it has complied with the conditions attaching to these grants. There were no unfulfilled conditions or other contingencies attaching to these grants as at 30 June 2021 and 2020. |
Segment Information (Details)_2
Segment Information (Details) - Schedule of segment results - USD ($) | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Oral and Dental Devices [Member] | ||||
Segment Information (Details) - Schedule of segment results [Line Items] | ||||
Revenue from external customers | $ 718,656 | |||
Interest income | 8 | |||
Other income | 140,816 | |||
Depreciation | (14,854) | |||
Amortisation | (21,688) | |||
Other expenses | (1,591,290) | |||
Segment loss after income tax | (768,352) | |||
Segment assets | ||||
Segment liabilities | ||||
Psychedelic [Member] | ||||
Segment Information (Details) - Schedule of segment results [Line Items] | ||||
Revenue from external customers | ||||
Interest income | ||||
Other income | ||||
Depreciation | ||||
Amortisation | ||||
Other expenses | (883,708) | (768,316) | ||
Segment loss after income tax | (883,708) | (768,316) | ||
Segment assets | $ 56,058 | 2,000 | ||
Segment liabilities | ||||
Medicinal Cannabis [Member] | ||||
Segment Information (Details) - Schedule of segment results [Line Items] | ||||
Revenue from external customers | [1] | 1,897,596 | 604,884 | |
Interest income | 6 | 2 | ||
Other income | 212,625 | |||
Depreciation | ||||
Amortisation | ||||
Other expenses | (5,202,371) | (2,899,761) | ||
Segment loss after income tax | (3,304,769) | (2,082,250) | ||
Segment assets | 104,267 | 662,414 | ||
Segment liabilities | (86,522) | (567,423) | ||
Unallocated [Member] | ||||
Segment Information (Details) - Schedule of segment results [Line Items] | ||||
Revenue from external customers | ||||
Interest income | 2,673 | 4,543 | ||
Other income | 73,069 | |||
Depreciation | ||||
Amortisation | ||||
Other expenses | (7,375,456) | (1,851,577) | ||
Segment loss after income tax | (7,299,714) | (1,847,034) | ||
Segment assets | 9,222,528 | 3,573,665 | ||
Segment liabilities | (668,527) | (504,228) | ||
Consolidated [Member] | ||||
Segment Information (Details) - Schedule of segment results [Line Items] | ||||
Revenue from external customers | 1,897,596 | 1,323,540 | ||
Interest income | 2,679 | 4,553 | ||
Other income | 73,069 | 353,441 | ||
Depreciation | (14,854) | |||
Amortisation | (21,688) | |||
Other expenses | (13,346,143) | (6,342,628) | ||
Segment loss after income tax | (11,372,799) | (4,697,636) | ||
Segment assets | 9,328,795 | 4,236,079 | ||
Segment liabilities | $ (755,049) | $ (1,071,651) | ||
[1] Of the total revenue from medicinal cannabis in the fiscal year ended 30 June 2021 and 2020, 100% was through Cannvalate Pty Ltd’s distribution network. |
Income tax (Details) - Schedu_3
Income tax (Details) - Schedule of the prima facie income tax (expense)/benefit on pre-tax accounting (loss)/profit from operations reconcile - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of The Prima Facie Income Tax Expense Benefit On Pre Tax Accounting Loss Profit From Operations Reconcile Abstract | |||
Accounting loss before tax | $ (14,903,909) | $ (11,372,799) | $ (4,697,636) |
Income tax benefit at the applicable tax rate of 26% (2020: 27.5%) | 3,725,977 | 2,956,928 | 1,291,850 |
Non-deductible expenses at the applicable tax rate of 26% (2020:27.5%) | (564,872) | (1,192,112) | (155,498) |
Deferred tax assets not recognised | (3,356,701) | (1,764,816) | (1,136,352) |
Income tax benefit | |||
Deductible temporary differences for which no deferred tax asset has been recognized | |||
Unused tax losses at 26% (2020: 27.5%) | 5,425,637 | 3,872,022 | |
Net unrecognized tax benefit | $ 6,211,316 | $ 5,425,637 | $ 3,872,022 |
Income tax (Details) - Schedu_4
Income tax (Details) - Schedule of the prima facie income tax (expense)/benefit on pre-tax accounting (loss)/profit from operations reconcile (Parentheticals) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of The Prima Facie Income Tax Expense Benefit On Pre Tax Accounting Loss Profit From Operations Reconcile Abstract | |||
Tax rate | 25% | 26% | 27.50% |
Non-deductible tax rate | 26% | 27.50% | |
Unused tax losses percentage | 26% | 27.50% |
Discontinued operations (Detail
Discontinued operations (Details) | Jun. 30, 2020 USD ($) |
Disclosure Of Non Current Assets Held For Sale And Discontinued Operations Text Block Abstract | |
Consolidated entity sold percentage | 100% |
Carrying value of assets | $ 29,277 |
Discontinued operations (Deta_2
Discontinued operations (Details) - Schedule of financial performance information - Financial Performance Information [Member] - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Discontinued operations (Details) - Schedule of financial performance information [Line Items] | ||
Revenue from external customers | $ 718,656 | |
Interest income | 8 | |
Other income | 140,816 | |
Product costs | (589,570) | |
Administration expense | (38,985) | |
Advertising and promotion | (218,865) | |
Depreciation | (14,854) | |
Amortisation | (21,688) | |
Loss on disposal of property, plant and equipment | (13,654) | |
Impairment cost | (82,989) | |
Occupancy expenses | (81,493) | |
Salaries and employee benefit expense | (565,734) | |
Loss before income tax | (768,352) | |
Income tax benefit | ||
Loss after income tax from discontinued operations | (768,352) | |
Cash | 17,970 | |
Inventories | 6,000 | |
Other current assets | 6,100 | |
Trade and other payables | (793) | |
Total proceeds from sale | $ 29,277 |
Discontinued operations (Deta_3
Discontinued operations (Details) - Schedule of plant and equipment | 12 Months Ended |
Jun. 30, 2020 USD ($) | |
Discontinued operations (Details) - Schedule of plant and equipment [Line Items] | |
Book value prior to impairment | $ 82,989 |
Plant and Equipment [Member] | |
Discontinued operations (Details) - Schedule of plant and equipment [Line Items] | |
Original Cost | 76,136 |
Accumulated Depreciation | (32,221) |
Book value prior to impairment | 43,915 |
Receivables [Member] | |
Discontinued operations (Details) - Schedule of plant and equipment [Line Items] | |
Book value prior to impairment | 11,385 |
Original book value | 11,635 |
Recoverable amount | (250) |
Intangible Assets [Member] | |
Discontinued operations (Details) - Schedule of plant and equipment [Line Items] | |
Original Cost | 116,731 |
Accumulated Depreciation | (89,042) |
Book value prior to impairment | $ 27,689 |
Loss Per Share (Details) - Sc_2
Loss Per Share (Details) - Schedule of loss per share - $ / shares | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Loss Per Share Abstract | |||
Basic loss per share– continuing and discontinued operations – cents per share | $ (1.25) | $ (1.16) | $ (0.69) |
Basic loss per share– continuing operations – cents per share | (1.16) | (0.57) | |
The loss and weighted average number of ordinary shares used in the calculation of basic loss per share is as follows: | |||
Loss from continuing and discontinued operations | (11,372,799) | (4,697,636) | |
Loss from continuing operations | $ (11,372,799) | $ (3,929,284) | |
Weighted average number of ordinary shares (number) (in Shares) | 1,191,154,011 | 976,931,338 | 684,035,399 |
Cash (Details) - Schedule of ca
Cash (Details) - Schedule of cash - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule Of Cash Abstract | |||
Cash at bank and on hand | $ 37,500,931 | $ 9,123,617 | $ 3,603,390 |
Total | $ 37,500,931 | $ 9,123,617 | $ 3,603,390 |
Cash (Details) - Schedule of ne
Cash (Details) - Schedule of net cash flows from operating activities - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Net Cash Flows From Operating Activities Abstract | |||
Loss after income tax | $ (14,903,909) | $ (11,372,799) | $ (4,697,636) |
Non-cash based expenses(income): | |||
Share based payments | 1,464,550 | 600,043 | 565,448 |
Depreciation and amortisation | 36,542 | ||
Non-cash expense for investor relation services | 3,781,344 | ||
Release of Gameday reserve of sales refund | (15,484) | ||
Non-cash expense for annual leave | (594,394) | 91,354 | 97,221 |
Changes in net assets and liabilities: | |||
Decrease/(increase) in receivables | (92,320) | 214,903 | (315,484) |
Decrease/(increase) in inventory | 183,159 | (30,355) | |
Decrease in other current assets | 53,447 | 172 | 2,928 |
(Increase)/decrease in trade and other payables | 1,111,080 | (291,311) | 464,223 |
Decrease in other liabilities | 154,173 | (101,161) | (30,221) |
Cash flows used in operations | $ (12,807,373) | $ (6,909,780) | $ (3,907,334) |
Trade and Other Receivables (_4
Trade and Other Receivables (Current) (Details) - Schedule of trade and other receivables (Current) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Current | |||
Trade receivables | $ 225,125 | ||
Other receivables | 53,447 | 51,026 | |
GST recoverable | 294,717 | 115,641 | 137,117 |
Total trade and other receivables (Current) | $ 294,717 | $ 169,088 | $ 413,268 |
Other assets (current) (Detai_2
Other assets (current) (Details) - Schedule of other assets (current) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Other Assets Current Abstract | |||
Prepayments | $ 45,911 | $ 29,784 | $ 11,083 |
Office rental bond | 24,124 | 25,179 | |
Prepayment clinical trial insurance | 13,925 | 6,306 | |
Other assets (current) | $ 83,960 | $ 36,090 | $ 36,262 |
Share Based Payments (Details_4
Share Based Payments (Details) - Schedule of table summarizes company’s stock option activity | 12 Months Ended | |
Jun. 30, 2021 $ / shares | Jun. 30, 2020 $ / shares | |
Schedule Of Table Summarizes Company SStock Option Activity Abstract | ||
Number of Options Outstanding beginning | 640,703,112 | 262,960,728 |
Weighted Average Exercise Price Outstanding beginning | $ 0.104 | $ 0.04 |
Weighted Average Remaining Contractual Life (years) Outstanding beginning | 1 year 3 months 1 day | |
Number of Options Granted | 72,414,690 | 412,169,705 |
Weighted Average Exercise Price Granted | $ 0.152 | $ 0.139 |
Number of Options Exercised | (286,500,523) | (34,427,321) |
Weighted Average Exercise Price Exercised | $ 0.044 | $ 0.031 |
Number of Options Expired or forfeited | (88,000,000) | |
Weighted Average Exercise Price Expired or forfeited | $ 0.104 | |
Number of Options Outstanding ending | 338,617,279 | 640,703,112 |
Weighted Average Exercise Price Outstanding ending | $ 0.166 | $ 0.104 |
Weighted Average Remaining Contractual Life (years) Outstanding ending | 6 months 24 days | 8 months 29 days |
Number of Options Exercisable as of 30 June 2021 | 337,117,279 | |
Weighted Average Exercise Price Exercisable as of 30 June 2021 | $ 0.167 |
Share Based Payments (Details_5
Share Based Payments (Details) - Schedule of consultants as share based payments - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2022 | |
Options granted to third parties | |||
Number Total options granted to third parties | 70,164,690 | 209,919,705 | |
Exercise Price Total options granted to third parties | $ 0.35 | $ 0.08 | |
Total fair value Total options granted to third parties | $ 4,521,507 | $ 693,470 | |
Options granted to employees | |||
Number Total options granted to employees | 2,250,000 | 202,250,000 | |
Total fair value Total options granted to employees | $ 81,922 | $ 385,294 | |
Total options | 72,414,690 | 412,169,705 | |
Total options | $ 4,603,429 | $ 1,078,764 | |
Option Granted To Third Parties [Member] | Unlisted Option [Member] | |||
Options granted to third parties | |||
Number Total options granted to third parties | 10,000,000 | ||
Grant Date Total options granted to third parties | Nov. 20, 2020 | ||
Expiry Date Total options granted to third parties | Nov. 20, 2023 | ||
Exercise Price Total options granted to third parties | $ 0.15 | ||
Total fair value Total options granted to third parties | $ 647,348 | ||
Option Granted To Third Parties [Member] | Unlisted options One [Member] | |||
Options granted to third parties | |||
Number Total options granted to third parties | 10,000,000 | 10,000,000 | |
Grant Date Total options granted to third parties | Nov. 20, 2020 | Aug. 08, 2019 | |
Expiry Date Total options granted to third parties | Nov. 20, 2023 | May 01, 2020 | |
Exercise Price Total options granted to third parties | $ 0.25 | $ 0.03 | |
Total fair value Total options granted to third parties | $ 527,766 | $ 51,531 | |
Options granted to employees | |||
Number Total options granted to employees | 750,000 | 750,000 | |
Grant Date Total options granted to employees | Jul. 01, 2020 | Jun. 26, 2020 | |
Expiry Date Total options granted to employees | Jun. 30, 2026 | Jun. 30, 2026 | |
Exercise Price Total options granted to employees | $ 0.05 | $ 0.05 | |
Total fair value Total options granted to employees | $ 27,450 | $ 26,424 | |
Option Granted To Third Parties [Member] | Unlisted options Two [Member] | |||
Options granted to third parties | |||
Number Total options granted to third parties | 10,000,000 | 12,000,000 | |
Grant Date Total options granted to third parties | Feb. 25, 2021 | Aug. 08, 2019 | |
Expiry Date Total options granted to third parties | Nov. 20, 2023 | May 01, 2020 | |
Exercise Price Total options granted to third parties | $ 0.2 | $ 0.04 | |
Total fair value Total options granted to third parties | $ 1,352,588 | $ 34,966 | |
Options granted to employees | |||
Number Total options granted to employees | 750,000 | 750,000 | |
Grant Date Total options granted to employees | Jul. 01, 2020 | Jun. 26, 2020 | |
Expiry Date Total options granted to employees | Jun. 30, 2027 | Jun. 30, 2027 | |
Exercise Price Total options granted to employees | $ 0.05 | $ 0.05 | |
Total fair value Total options granted to employees | $ 29,040 | $ 27,754 | |
Option Granted To Third Parties [Member] | Unlisted options Three [Member] | |||
Options granted to third parties | |||
Number Total options granted to third parties | 10,000,000 | 14,000,000 | |
Grant Date Total options granted to third parties | Feb. 25, 2021 | Aug. 19, 2019 | |
Expiry Date Total options granted to third parties | Nov. 20, 2023 | Dec. 01, 2020 | |
Exercise Price Total options granted to third parties | $ 0.25 | $ 0.06 | |
Total fair value Total options granted to third parties | $ 1,253,140 | $ 30,297 | |
Options granted to employees | |||
Number Total options granted to employees | 200,000,000 | ||
Grant Date Total options granted to employees | Jun. 26, 2020 | ||
Expiry Date Total options granted to employees | Sep. 30, 2021 | ||
Exercise Price Total options granted to employees | $ 0.2 | ||
Total fair value Total options granted to employees | $ 306,299 | ||
Option Granted To Third Parties [Member] | Unlisted options Four [Member] | |||
Options granted to third parties | |||
Number Total options granted to third parties | 30,164,690 | 16,000,000 | |
Grant Date Total options granted to third parties | Oct. 02, 2020 | Aug. 19, 2019 | |
Expiry Date Total options granted to third parties | Sep. 30, 2021 | Dec. 01, 2020 | |
Exercise Price Total options granted to third parties | $ 0.08 | $ 0.08 | |
Total fair value Total options granted to third parties | $ 740,665 | $ 18,248 | |
Option Granted To Third Parties [Member] | Unlisted options [Member] | |||
Options granted to third parties | |||
Number Total options granted to third parties | 10,000,000 | ||
Grant Date Total options granted to third parties | Aug. 08, 2019 | ||
Expiry Date Total options granted to third parties | Jan. 01, 2020 | ||
Exercise Price Total options granted to third parties | $ 0.02 | ||
Total fair value Total options granted to third parties | $ 85,251 | ||
Options granted to employees | |||
Number Total options granted to employees | 750,000 | 750,000 | |
Grant Date Total options granted to employees | Jul. 01, 2020 | Jun. 26, 2020 | |
Expiry Date Total options granted to employees | Jun. 30, 2025 | Jun. 30, 2025 | |
Exercise Price Total options granted to employees | $ 0.05 | $ 0.05 | |
Total fair value Total options granted to employees | $ 25,432 | $ 24,817 | |
Option Granted To Third Parties [Member] | Unlisted options Five [Member] | |||
Options granted to third parties | |||
Number Total options granted to third parties | 18,000,000 | ||
Grant Date Total options granted to third parties | Aug. 19, 2019 | ||
Expiry Date Total options granted to third parties | Dec. 01, 2020 | ||
Exercise Price Total options granted to third parties | $ 0.1 | ||
Total fair value Total options granted to third parties | $ 11,606 | ||
Option Granted To Third Parties [Member] | Unlisted options Six [Member] | |||
Options granted to third parties | |||
Number Total options granted to third parties | 20,000,000 | ||
Grant Date Total options granted to third parties | Aug. 19, 2019 | ||
Expiry Date Total options granted to third parties | Dec. 01, 2020 | ||
Exercise Price Total options granted to third parties | $ 0.12 | ||
Total fair value Total options granted to third parties | $ 7,700 | ||
Option Granted To Third Parties [Member] | Unlisted options Seven [Member] | |||
Options granted to third parties | |||
Number Total options granted to third parties | 20,000,000 | ||
Grant Date Total options granted to third parties | Aug. 19, 2019 | ||
Expiry Date Total options granted to third parties | Dec. 01, 2020 | ||
Exercise Price Total options granted to third parties | $ 0.14 | ||
Total fair value Total options granted to third parties | $ 4,804 | ||
Option Granted To Third Parties [Member] | Unlisted options Eight [Member] | |||
Options granted to third parties | |||
Number Total options granted to third parties | 89,919,705 | ||
Expiry Date Total options granted to third parties | Sep. 30, 2021 | ||
Exercise Price Total options granted to third parties | $ 0.08 | ||
Total fair value Total options granted to third parties | $ 449,067 |
Share Based Payments (Details_6
Share Based Payments (Details) - Schedule of share options granted is estimated the grant date Black-Scholes - $ / shares | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
$0.08 Options 30-Sep-2021 [Member] | |||
Share Based Payments (Details) - Schedule of share options granted is estimated the grant date Black-Scholes [Line Items] | |||
Number (in Shares) | 30,164,690 | ||
Dividend yield (%) | |||
Expected volatility (%) | 86% | ||
Risk-free interest rate (%) | 0.17% | ||
Expected life of option (years) | 1 year | ||
Exercise price (cents) (in Dollars per share) | $ 8 | ||
Grant date share price (cents) (in Dollars per share) | $ 7.7 | ||
Vesting date | 2-Oct-2020 | ||
$0.15 Options 20-Nov-2023 [Member] | |||
Share Based Payments (Details) - Schedule of share options granted is estimated the grant date Black-Scholes [Line Items] | |||
Number (in Shares) | 10,000,000 | ||
Dividend yield (%) | |||
Expected volatility (%) | 100% | ||
Risk-free interest rate (%) | 0.11% | ||
Expected life of option (years) | 3 years | ||
Exercise price (cents) (in Dollars per share) | $ 15 | ||
Grant date share price (cents) (in Dollars per share) | $ 11.5 | ||
Vesting date | 20-Nov-2020 | ||
$0.25 Options 20-Nov-2023 [Member] | |||
Share Based Payments (Details) - Schedule of share options granted is estimated the grant date Black-Scholes [Line Items] | |||
Number (in Shares) | 10,000,000 | ||
Dividend yield (%) | |||
Expected volatility (%) | 100% | ||
Risk-free interest rate (%) | 0.11% | ||
Expected life of option (years) | 3 years | ||
Exercise price (cents) (in Dollars per share) | $ 25 | ||
Grant date share price (cents) (in Dollars per share) | $ 11.5 | ||
Vesting date | 20-Nov-2020 | ||
$0.20 Options 20-Nov-2023 [Member] | |||
Share Based Payments (Details) - Schedule of share options granted is estimated the grant date Black-Scholes [Line Items] | |||
Number (in Shares) | 10,000,000 | ||
Dividend yield (%) | |||
Expected volatility (%) | 101% | ||
Risk-free interest rate (%) | 0.12% | ||
Expected life of option (years) | 2 years 8 months 12 days | ||
Exercise price (cents) (in Dollars per share) | $ 20 | ||
Grant date share price (cents) (in Dollars per share) | $ 22 | ||
Vesting date | 25-Feb-2021 | ||
$0.25 Options 20-Nov-2023 One [Member] | |||
Share Based Payments (Details) - Schedule of share options granted is estimated the grant date Black-Scholes [Line Items] | |||
Number (in Shares) | 10,000,000 | ||
Dividend yield (%) | |||
Expected volatility (%) | 101% | ||
Risk-free interest rate (%) | 0.12% | ||
Expected life of option (years) | 2 years 8 months 12 days | ||
Exercise price (cents) (in Dollars per share) | $ 25 | ||
Grant date share price (cents) (in Dollars per share) | $ 22 | ||
Vesting date | 25-Feb-2021 | ||
$0.05 Options 30-Jun-2025 [Member] | |||
Share Based Payments (Details) - Schedule of share options granted is estimated the grant date Black-Scholes [Line Items] | |||
Number (in Shares) | 750,000 | ||
Dividend yield (%) | |||
Expected volatility (%) | 92% | ||
Risk-free interest rate (%) | 0.39% | ||
Expected life of option (years) | 5 years | ||
Exercise price (cents) (in Dollars per share) | $ 5 | ||
Grant date share price (cents) (in Dollars per share) | $ 4.8 | ||
Vesting date | 30-Jun-2020 | ||
$0.05 Options 30-Jun-2026 [Member] | |||
Share Based Payments (Details) - Schedule of share options granted is estimated the grant date Black-Scholes [Line Items] | |||
Number (in Shares) | 750,000 | ||
Dividend yield (%) | |||
Expected volatility (%) | 92% | ||
Risk-free interest rate (%) | 0.48% | ||
Expected life of option (years) | 6 years | ||
Exercise price (cents) (in Dollars per share) | $ 5 | ||
Grant date share price (cents) (in Dollars per share) | $ 4.8 | ||
Vesting date | 30-Jun-2021 | ||
$0.05 Options 30-Jun-2027 [Member] | |||
Share Based Payments (Details) - Schedule of share options granted is estimated the grant date Black-Scholes [Line Items] | |||
Number (in Shares) | 750,000 | ||
Dividend yield (%) | |||
Expected volatility (%) | 92% | ||
Risk-free interest rate (%) | 0.58% | ||
Expected life of option (years) | 7 years | ||
Exercise price (cents) (in Dollars per share) | $ 5 | ||
Grant date share price (cents) (in Dollars per share) | $ 4.8 | ||
Vesting date | 30-Jun-2022 | ||
$0.20 Options 30-Sep-2021 [Member] | |||
Share Based Payments (Details) - Schedule of share options granted is estimated the grant date Black-Scholes [Line Items] | |||
Number (in Shares) | 2,000,000 | ||
Dividend yield (%) | |||
Expected volatility (%) | 93% | ||
Risk-free interest rate (%) | 0.25% | ||
Expected life of option (years) | 1 year 3 months | ||
Exercise price (cents) (in Dollars per share) | $ 20 | ||
Grant date share price (cents) (in Dollars per share) | $ 4.8 | ||
Vesting date | [1] | Refer (a) below | |
[1]The options vest upon the shares having a closing price of 20 cents per share or more for any 5 trading days at any time from the date of grant of the options until the expiry date of the options (30 September 2021). |
Share Based Payments (Details_7
Share Based Payments (Details) - Schedule of number of performance shares and performance rights - shares | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Schedule Of Number Of Performance Shares And Performance Rights Abstract | |||
Balance at start of year Performance Rights | [1] | 41,553,593 | 24,166,668 |
Granted by the Company Performance Rights | [1] | 32,303,593 | |
Converted or Expired Performance Rights | [1] | (41,553,593) | (14,916,668) |
Balance at end of year Performance Rights | [1] | 41,553,593 | |
Balance at start of year Performance Shares | [2] | 20,000,002 | |
Granted by the Company Performance Shares | [2] | ||
Converted or Expired Performance Shares | [2] | (20,000,002) | |
Balance at end of year Performance Shares | [2] | ||
[1]32,303,593 performance rights were issued as remuneration for the Company’s Chief Medical Officer (Dr Sud Agarwal), after approval by shareholders on 26 June 2020. 11,916,668 performance rights converted into ordinary shares upon achievement of designated performance hurdles and 3,000,000 performance rights expired.[2]Performance shares were issued to holders upon the Company’s relisting in November 2016. Performance hurdles attaching to these shares related to sales targets within the now discontinued devices business. These targets were not achieved and the performance shares lapsed on 30 June 2020. |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of inventory - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Current | ||
Medicinal cannabis products in-transit | $ 183,159 | |
Total inventory | $ 183,159 |
Trade and other payables (cur_4
Trade and other payables (current) (Details) - Schedule of trade and other payables (current) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Trade And Other Payables Current Abstract | |||
Trade payables | $ 1,300,696 | $ 233,117 | $ 590,099 |
Accrued expenses | 415,449 | 381,717 | 316,046 |
Employee leave entitlements | 294,388 | 140,215 | 48,861 |
Total | $ 2,010,533 | $ 755,049 | $ 955,006 |
Trade and other payables (cur_5
Trade and other payables (current) (Details) - Schedule of employee leave entitlements reconciliation - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Employee Leave Entitlements Reconciliation Abstract | ||
Carrying value, Beginning | $ 48,861 | $ 36,899 |
Leave accrued by employees during the year | 91,354 | 11,962 |
Balance, Ending | $ 140,215 | $ 48,861 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - Schedule of other current liabilities - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Other Current Liabilities Abstract | |||
Provision for sales refunds | [1] | $ 116,645 | |
Total | $ 116,645 | ||
[1]Under the terms of the sale agreement for the disposal of the devices business (refer to note 6) the Company is liable to pay to the buyer for any refunds related to devices sold that refunded after 30 June 2020. The Company recorded and estimated amount as of 30 June 2020. In the fiscal year ended 30 June 2021, the Company reached a settlement that they would no longer be liable for refunds given the historical lag associated with returns. After which, the Company recorded the remaining balance as other income. |
Other Current Liabilities (De_2
Other Current Liabilities (Details) - Schedule of provision for sales refunds reconciliation | 12 Months Ended |
Jun. 30, 2021 USD ($) | |
Schedule Of Provision For Sales Refunds Reconciliation Abstract | |
Carrying value as at 1 July 2020 | $ 116,645 |
Repayments made | (101,161) |
Settlement of liability recorded in other income | (15,484) |
Balance at 30 June 2021 |
Issued capital (Details) - Sc_3
Issued capital (Details) - Schedule of issued capital - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule Of Issued Capital Abstract | |||
Ordinary shares | $ 86,586,794 | $ 45,852,107 | $ 34,192,043 |
Issued capital (Details) - Sc_4
Issued capital (Details) - Schedule of ordinary shares movements during years - shares | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Ordinary Shares Movements During Years Abstract | |||
Number of shares, At start of year | 1,068,411,224 | 748,654,489 | 581,897,040 |
Number of shares, Issues of new shares – placements | 5,000,000 | 114,663,460 | |
Number of shares, Issues of new shares – share based payments | 2,952,619 | 5,750,000 | |
Number of shares, Conversion of performance rights | 30,303,593 | 11,916,668 | |
Number of shares, Exercise of options | 207,650,638 | 286,500,523 | 34,427,321 |
Number of shares, At end of year | 1,292,334,028 | 1,068,411,224 | 748,654,489 |
Reserves (Details) - Schedule_2
Reserves (Details) - Schedule of equity based premium reserve - USD ($) | 12 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |||||
Schedule Of Equity Based Premium Reserve Abstract | |||||||
Balance beginning | $ 6,612,641 | $ 1,490,588 | $ 451,643 | ||||
Options issued to advisors | [1] | 4,522,010 | [1],[2] | 449,093 | [2] | ||
Options issued to Cannvalate Pty Ltd | [3] | 244,403 | |||||
Equity instruments issued to management and directors | 600,043 | 345,449 | |||||
Balance ending | $ 8,077,191 | $ 6,612,641 | $ 1,490,588 | ||||
[1] During the year ended 30 June 2021, 40,000,000 options exercisable at $0.15, $0.20, and $.25 were issued to consultants for investor relation services. In addition, 30,164,690 options exercisable at $0.08 were issued as consideration for broker support of the exercise of the 262m listed IHLOB options series. During the year ended 30 June 2020, 33,000,000 options exercisable at $0.08 and expiring on 30 September 2021, were issued to brokers who supported the July 2019 capital raisings. These options have been valued using a Black-Scholes option model with inputs being grant date share price of $0.04 risk-free rate of 0.24% and volatility of 92%. During the year ended 30 June 2021, 40,000,000 options exercisable at $0.15, $0.20, and $.25 were issued to consultants for investor relation services. In addition, 30,164,690 options exercisable at $0.08 were issued as consideration for broker support of the exercise of the 262m listed IHLOB options series (see Note 12). During the year ended 30 June 2020, 33,000,000 options exercisable at $0.08 and expiring on 30 September 2021, were issued to brokers who supported the July 2019 capital raisings. These options have been valued using a Black-Scholes option model with inputs being grant date share price of $0.04 risk-free rate of 0.24% and volatility of 92%. On 9 August 2019, at a general meeting of shareholders, the issue of 120,000,000 options to Cannvalate Pty Ltd as remuneration for Cannvalate’s management of the Company’s clinical program was approved. This amount was initially recorded as a payable as at 30 June 2019 and transferred to the reserve in the year ended 30 June 2020. The options were valued using Black-Scholes option model with inputs being grant date share price of $0.02; risk-free rate of 1.07% and volatility of 59%. |
Remuneration of Auditors (Det_2
Remuneration of Auditors (Details) - Schedule of remuneration of auditors - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Audit or review of the financial reports of the Company | |||
Audit services – HLB Mann Judd | $ 23,138 | $ 37,785 | $ 37,000 |
Audit services – Withum Smith & Brown (US auditor) | 287,975 | ||
Total | $ 465,346 | $ 325,760 | $ 37,000 |
Financial Instruments (Detail_2
Financial Instruments (Details) - Schedule of contractual liabilities - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Financial Instruments (Details) - Schedule of contractual liabilities [Line Items] | |||
Payables & accruals | $ 1,828,527 | $ 614,834 | $ 906,145 |
Total payables | 1,828,527 | 614,834 | 906,145 |
Less than 1 month [Member] | |||
Financial Instruments (Details) - Schedule of contractual liabilities [Line Items] | |||
Payables & accruals | 1,828,527 | 614,834 | 906,145 |
Total payables | 1,828,527 | 614,834 | 906,145 |
1 to 3 months [Member] | |||
Financial Instruments (Details) - Schedule of contractual liabilities [Line Items] | |||
Payables & accruals | |||
Total payables | |||
3 months to 1 year [Member] | |||
Financial Instruments (Details) - Schedule of contractual liabilities [Line Items] | |||
Payables & accruals | |||
Total payables | |||
1 to 5 years [Member] | |||
Financial Instruments (Details) - Schedule of contractual liabilities [Line Items] | |||
Payables & accruals | |||
Total payables |
Commitments and contingencies_3
Commitments and contingencies (Details) - Schedule of future minimum payments - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Schedule Of Future Minimum Payments Abstract | ||
Within one year | $ 56,496 | $ 9,697 |
One to three years | 37,916 | |
Total minimum contract payments | $ 94,412 | $ 9,697 |
Key Management Personnel Comp_5
Key Management Personnel Compensation and Related Party Disclosure (Details) - Schedule of key management personnel compensation - USD ($) | 12 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |||
Schedule Of Key Management Personnel Compensation Abstract | |||||
Short-term employee benefits | $ 1,333,992 | $ 761,231 | $ 638,201 | ||
Share based payments | 1,028,634 | 672,699 | [1] | 565,448 | [1] |
Post-employment benefits | 47,547 | 38,877 | 29,985 | ||
Total KMP compensation | $ 2,410,173 | $ 1,472,807 | $ 1,233,634 | ||
[1]The Company notes the amounts do not agree to the Consolidated Statements of Changes in Equity for the year ended 30 June 2021. The Company notes there was a reversal of expense in the amount of $72,656 related to 88,000,000 share options issued to Cannvalate Pty Ltd due to the options being forfeited. These options had been issued during financial year ended June 30, 2020. |
Parent Entity Disclosures (De_3
Parent Entity Disclosures (Details) - Schedule of financial statements for the parent entity - Parent [Member] - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 | |
Condensed Financial Statements, Captions [Line Items] | |||
Current assets | $ 9,222,528 | $ 3,573,665 | |
Non-Current assets | [1] | ||
Total assets | 9,222,528 | 3,573,665 | |
Current liabilities | (668,527) | (504,228) | |
Non-current liabilities | |||
Total liabilities | (668,527) | (504,228) | |
Net assets | 8,554,001 | 3,069,437 | |
Share capital | 45,852,107 | 34,192,043 | |
Reserves | 6,612,641 | 1,490,588 | |
Deficit | (43,910,747) | (32,613,194) | |
Shareholders’ equity | $ 8,554,001 | $ 3,069,437 | |
[1]In the year ended 30 June 2020, the loan to the subsidiary company has been fully impaired. |