Document And Entity Information
Document And Entity Information | 12 Months Ended |
Jun. 30, 2023 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 | 1,587,010,366 |
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, 2023 |
Document Fiscal Year Focus | 2023 |
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 |
Entity Interactive Data Current | Yes |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | International Financial Reporting Standards |
Auditor Firm ID | 6622 |
Auditor Name | PKF BRISBANE AUDIT |
Auditor Location | Brisbane, Australia |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Loss Per Share [Abstract] | |||
Other income | $ 1,376,645 | $ 788,654 | $ 75,748 |
Total other income | 1,376,645 | 788,654 | 1,973,344 |
Product costs | (6,338) | (911,969) | |
Administration expense | (568,954) | (280,969) | (99,094) |
Advertising and investor relations | (1,852,416) | (2,746,226) | (4,345,874) |
Bad debt expense | (134,626) | ||
Research and development costs | (9,364,796) | (5,371,821) | (4,749,514) |
Compliance, legal and regulatory | (2,632,069) | (3,559,511) | (1,227,244) |
Share based payments | (3,191,640) | (1,464,550) | (600,043) |
Occupancy expenses | (124,628) | (112,341) | (115,836) |
Depreciation expense | (130,946) | ||
Salaries and employee benefit expense | (3,490,754) | (2,016,181) | (1,296,569) |
Total expenses | (21,356,203) | (15,692,563) | (13,346,143) |
Loss before tax | (19,979,558) | (14,903,909) | (11,372,799) |
Income tax | |||
Loss after tax | (19,979,558) | (14,903,909) | (11,372,799) |
Other comprehensive income | |||
Total comprehensive loss for the year | $ (19,979,558) | $ (14,903,909) | $ (11,372,799) |
Earnings per share | |||
Basic loss per share (cents per share) (in Dollars per share) | $ (1.3) | $ (1.25) | $ (1.16) |
Diluted loss per share (cents per share) (in Dollars per share) | $ (1.3) | $ (1.25) | $ (1.16) |
Revenue | $ 1,897,596 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Current assets | |||
Cash and cash equivalents | $ 33,363,228 | $ 37,500,931 | $ 9,123,617 |
Trade and other receivables | 287,478 | 294,717 | 169,088 |
Other assets | 1,035,181 | 83,960 | 36,090 |
Total current assets | 34,685,887 | 37,879,608 | 9,328,795 |
Non-current assets | |||
Property, plant and equipment | 443,652 | ||
Right-of-use assets | 743,734 | ||
Intangible assets | 52,717,427 | ||
Total non-current assets | 53,904,813 | ||
Total assets | 88,590,700 | 37,879,608 | 9,328,795 |
Current liabilities | |||
Trade and other payables | 3,675,090 | 2,010,533 | 755,049 |
Lease liabilities | 170,656 | ||
Total current liabilities | 3,845,746 | 2,010,533 | 755,049 |
Non-current liabilities | |||
Lease liabilities | 616,087 | ||
Total non-current liabilities | 616,087 | ||
Total liabilities | 4,461,833 | 2,010,533 | 755,049 |
Net assets | 84,128,867 | 35,869,075 | 8,573,746 |
Equity | |||
Issued capital | 150,842,248 | 86,586,794 | 45,852,107 |
Reserves | 12,061,087 | 8,077,191 | 6,612,641 |
Accumulated losses | (78,774,468) | (58,794,910) | (43,891,002) |
Net equity | $ 84,128,867 | $ 35,869,075 | $ 8,573,746 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) | Issued Capital | Equity Reserve | Accumulated Losses | Total | ||
Balance at Jun. 30, 2020 | $ 34,192,043 | $ 1,490,588 | $ (32,518,203) | $ 3,164,428 | ||
Options exercised | 12,498,706 | 12,498,706 | ||||
Options issued to advisors | 3,781,344 | 3,781,344 | ||||
Share based payments | 600,043 | 600,043 | ||||
Shares issue costs | (838,642) | 740,666 | (97,976) | |||
Comprehensive loss for the year | (11,372,799) | (11,372,799) | ||||
Balance at Jun. 30, 2021 | 45,852,107 | 6,612,641 | (43,891,002) | 8,573,746 | ||
Options exercised | 40,274,242 | 40,274,242 | ||||
Option placements | [1] | |||||
Share based payments | 1,464,550 | 1,464,550 | [2] | |||
Share placements | 400,000 | 400,000 | ||||
Shares issued to advisors | 450,000 | 450,000 | ||||
Shares issue costs | (389,555) | (389,555) | ||||
Comprehensive loss for the year | (14,903,909) | (14,903,909) | ||||
Balance at Jun. 30, 2022 | 86,586,794 | 8,077,191 | (58,794,910) | 35,869,075 | ||
Options exercised | 2,027 | 2,027 | ||||
Options issued to advisors | 684,000 | 684,000 | ||||
Option placements | 108,257 | 108,257 | [1] | |||
Asset acquisition shares issued | 49,088,139 | 49,088,139 | ||||
Share based payments | 3,191,640 | 3,191,640 | [2] | |||
Share placements | 13,000,000 | 13,000,000 | ||||
Shares issued to advisors | 2,945,288 | 2,945,288 | ||||
Shares issue costs | (780,000) | (780,000) | ||||
Comprehensive loss for the year | (19,979,558) | (19,979,558) | ||||
Balance at Jun. 30, 2023 | $ 150,842,248 | $ 12,061,087 | $ (78,774,468) | $ 84,128,867 | ||
[1] During the year ended 30 June 2023, the Company issued 105,800,651 options to existing shareholders for nominal amount as part of a loyalty placement offer. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | |||
Receipts from customers | $ 1,974,010 | ||
Receipts from other income | 1,013,879 | 782,383 | 82,807 |
Payments to suppliers and employees | (17,285,861) | (13,596,027) | (8,969,276) |
Interest received and other income | 329,157 | 6,271 | 2,679 |
Net cash (used in) operating activities | (15,942,825) | (12,807,373) | (6,909,780) |
Cash flows from investing activities | |||
Proceeds from disposal of subsidiary | 29,277 | ||
Proceeds from disposal of property, plant and equipment | |||
Cash flows from investing activities | |||
Payments for the addition of property, plant and equipment | (476,873) | ||
Net cash from investing activities | (476,873) | 29,277 | |
Cash flows from financing activities | |||
Proceeds from shares issued (net of costs) | 12,330,284 | 41,184,687 | 12,400,730 |
Repayment of lease liabilities | (54,717) | ||
Net cash from financing activities | 12,275,567 | 41,184,687 | 12,400,730 |
Net decrease in cash and cash equivalents | (4,144,131) | 28,377,314 | 5,520,227 |
Cash and cash equivalents at beginning of the year | 37,500,931 | 9,123,617 | 3,603,390 |
Effect of exchange rate fluctuations on cash held | 6,428 | ||
Cash and cash equivalents at end of the year | $ 33,363,228 | $ 37,500,931 | $ 9,123,617 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Significant Accounting Policies [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 Level 23, South Tower Rialto, 525 Collins Street Melbourne Victoria 3000, Australia. For the fiscal year ended 30 June 2023, the Group incurred a total comprehensive loss after income tax of $19.98 million (2022: $14.9 million) and had net cash outflows from operations of $15.94 million (2022: $12.8 million). The Group held total cash of $33.36 million as of 30 June 2023 (2022: $37.5 million). 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 2023. The consolidated financial statements comply with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (“AIFRS”), in their entirety. Compliance with AIFRS ensures that the financial report also complies with International Financial Reporting Standards (“IFRS”). Parent entity information In accordance with AASB 10 (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 2023 and 2022 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 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 AASB 15 (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 2023 and 2022, 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. Property, plant and equipment All property, plant and equipment is recognised at historical cost less depreciation. Depreciation is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives or, in the case of leasehold improvements and certain leased plant and equipment, the shorter lease term as follows: ● Buildings 25-40 years ● Machinery 10-15 years ● Vehicles 3-5 years ● Furniture, fittings and equipment 3-8 years Furniture, fittings and equipment include assets in the form of office fit outs. These assets and other leasehold improvements are recognised at their fair value and depreciated over the shorter of their useful life or the lease term, unless the entity expects to use the assets beyond the lease term. Intangible assets Patents and trademarks Separately acquired patents and trademarks are shown at historical cost. Trademarks have an indefinite useful life. Patents have been assessed to have a 13-year useful life. Amortisation shall begin when the patents are available for use. At that point, they will be carried at cost less accumulated amortisation and impairment losses. Intangible assets with an indefinite useful life or that are not yet available for use are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. 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 2023 and 2022. Right-of-use leased assets A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. The Company has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. Lease Liabilities A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index, or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. 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 AASB 13 (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 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. Adoption of new and revised standards The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Accounting standards and interpretations issued but not yet effective Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective and have not been adopted by the Group for the annual reporting period ended 30 June 2023 and are not material to the disclosure in these accounts. | 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 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 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. |
Critical Accounting Judgements,
Critical Accounting Judgements, Estimates and Assumptions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Critical Accounting Judgements, Estimates and Assumptions [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. Acquisition of APIRx Pharmaceuticals The Group has determined that the acquisition of APIRx Pharameticals (“APIRx”) in August 2022 is not deemed a business combination as the acquired set of activities and assets of APIRx did not meet the definition of a business under AASB 3 Business Combinations. Therefore, the transaction has been accounted for as an asset acquisition. In an asset acquisition, the assets acquired are assigned a carrying amount based on the cost of the transaction and their relative fair values. The cost of the transaction was determined based on the fair value of the shares issued for consideration (in accordance with the shared based payment transactions accounting policy below). No deferred tax will arise in relation to the acquired assets and assumed liabilities as per the initial recognition exemption under AASB 112 Income Taxes. Furthermore, no goodwill arises on acquisition and transaction costs of the acquisition are included in the capitalised cost of the asset. In determining when a transaction is an asset acquisition and not a business, significant judgment is required to assess whether the assets acquired constitute a business in accordance with AASB 3. Under AASB 3 a business is an integrated set of activities and assets that is capable of being conducted or managed for the purposes of providing a return, and consists of inputs and processes which, when applied to those inputs has the ability to create outputs. 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. Intangible assets with an indefinite useful life or that are not yet available for use The Group tests annually, or more frequently if events or changes in circumstances indicate impairment, whether an intangible asset with an indefinite useful life or an intangible asset that is not yet available for use has suffered any impairment, in accordance with the accounting policy stated in note 1. The recoverable amounts have been determined using the Relief from Royalty method. These calculations require the use of assumptions, including estimated discount rates, royalty rates, and growth rates of the estimated future cash flows. Refer to note 12 for further information. | 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. |
Other Income
Other Income | 12 Months Ended |
Jun. 30, 2023 | |
Other Income [Abstract] | |
Other income | 3. Other income Consolidated 2023 2022 Other income (point in time) $ $ Interest 362,766 6,271 Refundable R&D tax offset 1,013,879 782,383 1,376,645 788,654 |
Segment Information
Segment Information | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Information [Abstract] | ||
Segment Information | 4. Segment Information Identification of reportable operating segments AASB 8 (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 AASB 8 (IFRS 8), for the fiscal year ended 30 June 2023, 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 consolidated statement of comprehensive income and the assets and liabilities of the Group as a whole are set out in the consolidated 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 2023 Psychedelic products Cannabinoid Products Corporate Consolidated $ $ $ $ Revenue from external customers - - - - Interest revenue - (129 ) 362,895 362,766 Other revenue - 1,013,879 - 1,013,879 Other expenses (1,092,033 ) (9,121,608 ) (11,142,562 ) (21,356,203 ) Segment loss after income tax (1,092,033 ) (8,107,858 ) (10,779,667 ) (19,979,558 ) Segment assets 881,808 53,359,216 34,349,676 88,590,700 Segment liabilities (433,278 ) (2,395,958 ) (1,632,597 ) (4,461,833 ) 30 June 2022 Psychedelic products Cannabinoid 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 ) | 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 consolidated statement of comprehensive income and the assets and liabilities of the Group as a whole are set out in the consolidated 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 Cannabinoid 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 Cannabinoid 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. |
Income Tax
Income Tax | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax [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 2023 2022 $ $ Accounting loss before tax (19,979,558 ) (14,903,909 ) Income tax benefit at the applicable tax rate of 25% (2022: 26%) 4,994,890 3,725,977 Non-deductible expenses (1,259,881 ) (564,872 ) Non-assessable income 253,439 195,596 Deferred tax assets not recognized (3,988,448 ) (3,356,701 ) Income tax benefit - - Unrecognized Deferred Tax Asset Deferred tax asset not recognized in the financial statements: Unused tax losses 29,636,125 24,845,264 Net unrecognized tax benefit at 25% (2022: 26%) 7,409,031 6,211,316 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 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. |
Loss Per Share
Loss Per Share | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Loss Per Share [Abstract] | ||
Loss per share | 6. Loss per share Consolidated 2023 2022 $ $ Basic loss per share - cents per share (1.30 ) (1.25 ) 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 (19,979,558 ) (14,903,909 ) - Weighted average number of ordinary shares (number) 1,536,826,010 1,191,154,011 The company notes that the diluted loss per share is the same as basic 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. |
Dividends
Dividends | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Dividends [Abstract] | ||
Dividends | 7. Dividends The Company has not declared a dividend for the year ended 30 June 2023 (2022: $ nil | 7. Dividends The Company has not declared a dividend for the year ended 30 June 2022 (2021: $nil). |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 8. Cash and cash equivalents Consolidated 2023 2022 $ $ Cash at bank and on hand 33,363,228 37,500,931 33,363,228 37,500,931 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 (19,979,558 ) (14,903,909 ) Adjustments to reconcile net income to net cash used in operating activities: Share-based payments 3,191,640 1,464,550 Depreciation and amortisation 130,946 - Foreign exchange gain (6,428 ) (594,394 ) Changes in net assets and liabilities: (Increase)/Decrease in receivables 7,240 (92,320 ) (Increase)/Decrease in other current assets (951,221 ) 53,447 Increase/(Decrease) in trade payables and accrued expenses 1,561,321 1,111,080 Increase/(Decrease) in other liabilities 103,235 154,173 Cash flows used in operations (15,942,825 ) (12,807,373 ) | 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 ) |
Trade and Other Receivables (Cu
Trade and Other Receivables (Current) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Trade and other receivables (current) [Abstract] | ||
Trade and other receivables (current) | 9. Trade and other receivables (current) Current Consolidated 2023 2022 $ $ GST recoverable 287,478 294,717 287,478 294,717 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. | 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. |
Other Assets (Current)
Other Assets (Current) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Other Assets (Current) [Abstract] | ||
Other assets (current) | 10. Other assets (current) Prepayments 1 935,172 59,836 Office rental bond 100,009 24,124 1,035,181 83,960 1 Prepayments consist prepaid clinical trial insurances, prepaid R&D expenditure relating to PsiGAD and IHL-675A clinical trials and scientific, marketing, and adverting subscription services. | 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 |
Property, Plant and Equipment (
Property, Plant and Equipment (Non-Current) | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment (Non-Current) [Abstract] | |
Property, plant and equipment (non-current) | 11. Property, plant and equipment (non-current) Furniture, Total $ $ Year ended 30 June 2023 Opening net book amount - - Additions 476,873 476,873 Depreciation charge (33,221 ) (33,221 ) Closing net book amount 443,652 443,652 At 30 June 2023 Cost 476,873 476,873 Accumulated depreciation and impairment (33,221 ) (33,221 ) Net book amount 443,652 443,652 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jun. 30, 2023 | |
Intangible Assets [Abstract] | |
Intangible assets | 12. Intangible assets Patents Trademarks Other 3 Total $ $ $ $ Year ended 30 June 2023 Opening net book amount - - - - Acquisition of assets 1 22,822,000 28,904,000 991,000 52,717,427 Amortisation charge 2 - - - - Closing net book amount 22,822,000 28,904,000 991,000 52,717,427 At 30 June 2023 Cost 22,822,000 28,904,000 991,000 52,717,427 Accumulated amortization and impairment2 - - - - Net book amount 22,822,000 28,904,000 991,000 52,717,427 1 On 4 August 2022, the Company completed the acquisition of APIRx Pharmaceuticals via the issuance of 218,169,506 IHL ordinary shares to the stakeholders of APIRx in an all–scrip transaction. As substantially all of the fair value of the assets acquired in the transaction relates to intangible assets (patents, trademarks, active clinical and pre-clinical research and development projects), the transaction has been determined to be an asset acquisition and not a business combination. In addition to the shares issued to APIRx, the Company issued 13,090,170 IHL ordinary shares & 9,000,000 IHL options to Ryba LLC as part of their engagement terms as lead M&A advisors, which were included in the cost of the assets acquired. The total cost was allocated to the acquired assets on the basis of the assets’ relative fair values. 2 Patents have been assessed to have a 13-year useful life; trademarks have an indefinite useful life. There has been no amortisation at period end as the assets are not available for use yet. 3 Other intangibles relates to the fair value of other IP assets acquired, including pending or inactive patents. Impairment testing for intangible assets with indefinite life or that are not yet available for use The accounting standards state that an impairment test must be performed annually for indefinite life intangible assets such as patents and trademarks. Further, companies must also assess at each reporting date whether there is any indication that the asset may be impaired and, if so, perform an impairment test. The recoverable amount was determined using the Relief from Royalty (‘RFR’) valuation method. Fair value was measured largely using Level 2 and Level 3 inputs under AASB 13 Fair Value Measurement The calculations reflect a thirteen-year revenue forecast and requires the use of assumptions, including estimated royalty rates, tax rate, estimated discount rates and expected useful life. The following key assumptions were used in the Relief from Royalty model: Patents Trademarks Royalty rate 1 5.25 % 6.25 % Terminal growth rate 2 N/A 11.20 % Post-tax discount rate 3 42.5 % 42.5 % Discount rate premium 4 1.00 % 1.00 % Tax rate 5 30.00 % 30.00 % Compound annual revenue growth rate 6 10.18 % 10.18 % 1 The royalty rates (a percentage of gross revenue) used in the valuation models is based on rates observed in the market. 2 The terminal growth rate is a blended rate based on the relative proportion of revenue generated by each Trademark at the end of the forecast period, and the expected market growth of the drugs market specific to the indications treated by the drug candidates under those Trademarks. 3 The discount rate applied has been determined with reference to the rates of return expected by venture capitalists investing in early-stage companies based on academic research and empirical evidence. 4 Intangible assets, by their nature, generally carry more risk than tangible assets and therefore, the return required for tangible assets such as working capital and fixed assets is typically lower than the company discount rate, and the return required for intangible assets is higher than the discount rate. 5 The tax rate applied in the valuation model is based on the Australian corporate tax rate of 30.0%. 6 Compounded annual growth rate over 10 years from FY25-35. There is no indication of impairment at balance date. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | 13. Leases Consolidated 2023 2022 $ $ Amounts recognised in statement of financial position Right-of-use assets Right-of-use assets 1 841,460 - Depreciation (97,726 ) - 743,734 - 1 For the year ended 30 June 2023, the Group entered into a three new lease agreement for its corporate head office in Sydney, Melbourne office and Clarion Clinic site. The leases have four, five and three-year terms respectively. Lease liabilities Current 170,656 - Non-current 616,087 - 786,743 - Amounts recognised in statement of comprehensive income Depreciation charge of right-of-use assets 97,726 - Net finance expenses 33,609 - 131,335 - |
Trade and Other Payables (Curre
Trade and Other Payables (Current) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Trade and Other Payables (Current) [Abstract] | ||
Trade and other payables (current) | 14. Trade and other payables (current) Consolidated 2023 2022 $ $ Trade payables 2,707,441 1,300,696 Accrued expenses 641,031 415,449 Employee leave entitlements 326,618 294,388 3,675,090 2,010,533 | 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 |
Issued Capital
Issued Capital | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Issued Capital [Abstract] | ||
Issued capital | 15. Issued capital Consolidated 2023 2022 $ $ 150,842,248 86,586,794 Consolidated 2023 2023 2022 2022 $ No. of shares $ No. of shares (a) Ordinary shares - movements during year At start of year 86,586,794 1,292,334,028 45,852,106 1,068,411,224 Issues of new shares – placements 1 13,000,000 63,414,635 400,000 5,000,000 Issues of new shares – acquistion 2 49,088,139 218,169,506 - - Issues of new shares – employees and directors’ - - - 10,000,000 Exercise of options 2,027 2,027 40,274,243 207,650,638 Shares in lieu of advisor fees 3 2,945,288 13,090,170 450,000 1,272,166 Share issue costs 4 (780,000 ) - (389,555 ) - At end of year 150,842,248 1,587,010,366 86,586,794 1,292,334,028 1 On 9 December 2022, the Group raised $13 million from a placement of 63,414,635 shares with a small consortium of US and international institutional investors with significant healthcare experience in the US, Europe and Asia. 2 On 4 August 2022, the Company completed the acquisition on APIRx Pharmaceuticals via the issuance of 218,169,506 IHL ordinary shares to the stakeholders of APIRx in an all–scrip transaction. 3 On 4 August 2022, the Company issued 13,090,170 IHL ordinary shares to Ryba LLC as lead M&A Advisors on the APIRx acquisition. 4 On 9 December 2022, the Group incurred $780k of share issue cost from Bell Potter relating to the share placement completed during the period. | 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. |
Reserves
Reserves | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Reserves [Abstract] | ||
Reserves | 16. Reserves Equity based premium reserve Consolidated 2023 2022 $ $ Balance at 1 July 2022 8,077,191 6,612,641 Options issued to advisors 1 684,000 - Issues of new options – placement 2 108,257 - Equity instruments issued to management and directors 3 3,191,640 1,464,550 At 30 June 2023 12,061,087 8,077,191 1 During the year ended 30 June 2023, the Company issued 9,000,000 options to Ryba LLC pursuant to the mandate executed between the companies in November 2021. As the transaction between the Company and APIRx was deemed complete on 04 August 2022 the options were issued. 2 During the year ended 30 June 2023, the Company issued 105,800,651 options to existing shareholders for nominal amount as part of a loyalty placement offer. 3 Relates to the amortization of shares and options issued as share-based payments during the current and prior periods. The equity based premium reserve is used to record the value of equity issued to raise capital, and for share-based payments. | 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. |
Share Based Payments
Share Based Payments | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share Based Payments [Abstract] | ||
Share based payments | 17. 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 $1,866,328 as of 30 June 2023 there was $895,318 of total unrecognized compensation cost related to unvested shares. Options The exercise price of options outstanding as of 30 June 2023 and 2022 ranged between $0.35 and $1.50. As of 30 June 2023, there was $1,325,311 of recognized and $615,452 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 2023: Options Number Grant Expiry Exercise Total Options granted to Directors Unlisted Options 2,500,000 29-Nov-22 31-May-24 $ 1.00 $ 57,500 Unlisted Options 2,500,000 29-Nov-22 31-May-24 $ 1.50 $ 30,000 Options granted to third parties Unlisted Options 3,000,000 04-Aug-22 04-Aug-25 $ 0.61 $ 243,000 Unlisted Options 3,000,000 04-Aug-22 04-Aug-25 $ 0.69 $ 228,000 Unlisted Options 3,000,000 04-Aug-22 04-Aug-25 0.76 $ 213,000 Total options 14,000,000 $ 771,500 The following share options were issued to employees and consultants as share based payments during the year ended 30 June 2022: Options Number Grant 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 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 2023: $1.00 $1.50 $0.612 $0.69 $0.765 31-May-24 31-May-24 4-Aug-25 4-Aug-25 4-Aug-25 Number 2,500,000 2,500,000 3,000,000 3,000,000 3,000,000 Expected volatility (%) 90 % 90 % 90 % 90 % 90 % Risk-free interest rate (%) 3.18 % 3.18 % 2.86 % 2.86 % 2.86 % Expected life of option (years) 1.5 1.5 3.0 3.0 3.0 Exercise price (cents) 100 150 61.2 69.0 76.5 Grant date share price (cents) 23.5 23.5 22.5 22.5 22.5 Vesting date 29-Nov-22 29-Nov-22 4-Aug-22 4-Aug-22 4-Aug-22 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 $0.31 $0.35 $0.26 $0.31 $0.35 $0.26 $0.31 $0.35 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 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. Ordinary shares There were 218,169,506 IHL ordinary shares issued to the vendors APIRx as part of the asset acquisition, in addition the Company issued 13,090,170 IHL ordinary shares to Ryba LLC as lead M&A advisors. The fair value of the shares was determined with reference to the ASX share price at the date at which the shares were granted. Refer note 12 & 15 for further details. Performance Rights There were no Performance Shares and Performance Rights for the years ended 30 June 2023 & 2022. | 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 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. |
Remuneration of Auditors
Remuneration of Auditors | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Remuneration of Auditors [Abstract] | ||
Remuneration of auditors | 18. Remuneration of auditors Consolidated Consolidated 2023 2022 $ $ Audit or review of the financial reports of the company Amounts received & receivable by the auditor: Audit services – PKF Brisbane Audit 97,750 85,000 Audit services – HLB Mann Judd - 23,138 Audit services – Withum Smith & Brown (US auditor) - 357,208 97,750 465,346 Withum Smith&Brown, PC were appointed auditors in the US in preparation for listing the Company’s securities in the US. | 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. |
Financial Instruments
Financial Instruments | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Financial Instruments [Abstract] | ||
Financial instruments | 19. 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 2023, 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 2023 were as follows: Description Less than 1 to 3 3 months 1 to 5 Total Consolidated $ $ $ $ $ Payables & accruals 3,298,131 236,514 140,445 - 3,675,090 3,298,131 236,514 140,445 - 3,675,090 The Group’s contractual liabilities at 30 June 2022 were as follows: Description Less than 1 to 3 3 months 1 to 5 Total Consolidated $ $ $ $ $ Payables & accruals 1,828,527 - - - 1,828,527 1,828,527 - - - 1,828,527 (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. | 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 1 to 3 3 months to 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 1 to 3 3 months to 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Commitments and Contingencies [Abstract] | ||
Commitments and contingencies | 20. Commitments and contingencies The Group had no commitments or contingent liabilities as at 30 June 2023. | 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. |
Key Management Personnel Compen
Key Management Personnel Compensation and Related Party Disclosure | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Key Management Personnel compensation and related party disclosure [Abstract] | ||
Key Management Personnel compensation and related party disclosure | 21. 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 George Anastassov Robert Clark (appointed 17 August 2022) Key management personnel compensation 2023 2022 $ $ Short-term employee benefits 2,296,996 1,333,992 Post-employment benefits 66,757 47,547 Share based payments 2,715,156 1,028,634 Total KMP compensation 5,078,909 2,410,173 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, nil During the year, $247,122 (2022: Nil During the year, Mr Valentine was paid $254,000 (2022: $240,000) for consulting fees invoiced to the Company, outside of his directors’ fees. Mr Widdows was also paid $160,000 (2022: Nil | 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. |
Details of the Controlled Entit
Details of the Controlled Entity | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Details of the Controlled Entity [Abstract] | ||
Details of the controlled entity | 22. 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’), APIRx Pharmaceuticals, LLC (‘APIRx’) and Psychennex Pty Ltd (‘PXPL’). IXPL is incorporated in Australia and IHL owns 100% of the issued ordinary shares in IXPL (2022: 100%). APIRx is formed in Delaware and IHL owns 100% of the issued capital in APIRx. PXPL is incorporated in Australia and IHL owns 100% of the issued ordinary shares in PXPL (2022: 100%). | 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%). |
Events Subsequent to Reporting
Events Subsequent to Reporting Date | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Events Subsequent to Reporting Date [Abstract] | ||
Events Subsequent to Reporting Date | 23. Events Subsequent to Reporting Date No further significant events have occurred since the end of the financial year. | 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. |
Parent Entity Disclosures
Parent Entity Disclosures | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Parent Entity Disclosures [Abstract] | ||
Parent entity disclosures | 24. Parent entity disclosures The individual financial statements for the parent entity show the following aggregate amounts. Statement of financial position 2023 2022 Financial Position $ $ Current assets 33,677,744 37,559,819 Non-Current assets 671,932 - Total assets 34,349,676 37,559,819 Current liabilities (1,260,966 ) (1,078,404 ) Non-current liabilities (371,631 ) - Total liabilities (1,632,597 ) (1,078,404 ) Net assets 32,717,079 36,481,415 Issued capital 150,842,248 86,586,794 Reserves 12,061,087 8,077,191 Accumulated losses (130,186,256 ) (58,182,570 ) Shareholders’ equity 32,717,079 36,481,415 Contingencies of the Parent Entity There are no contingent liabilities involving the parent entity (2022: Nil Guarantees of the Parent Entity There are no guarantees involving the parent entity (2022: Nil | 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 Nil Guarantees of the Parent Entity There are no Nil |
Revenue
Revenue | 12 Months Ended |
Jun. 30, 2022 | |
Revenue [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 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
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 Level 23, South Tower Rialto, 525 Collins Street Melbourne Victoria 3000, Australia. For the fiscal year ended 30 June 2023, the Group incurred a total comprehensive loss after income tax of $19.98 million (2022: $14.9 million) and had net cash outflows from operations of $15.94 million (2022: $12.8 million). The Group held total cash of $33.36 million as of 30 June 2023 (2022: $37.5 million). | 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 | 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 2023. The consolidated financial statements comply with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (“AIFRS”), in their entirety. Compliance with AIFRS ensures that the financial report also complies with International Financial Reporting Standards (“IFRS”). | 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 | Parent entity information In accordance with AASB 10 (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 2023 and 2022 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. | 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 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 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 | 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 AASB 15 (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 2023 and 2022, 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 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 | 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 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 | 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. 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. |
Property, plant and equipment | Property, plant and equipment All property, plant and equipment is recognised at historical cost less depreciation. Depreciation is calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives or, in the case of leasehold improvements and certain leased plant and equipment, the shorter lease term as follows: ● Buildings 25-40 years ● Machinery 10-15 years ● Vehicles 3-5 years ● Furniture, fittings and equipment 3-8 years Furniture, fittings and equipment include assets in the form of office fit outs. These assets and other leasehold improvements are recognised at their fair value and depreciated over the shorter of their useful life or the lease term, unless the entity expects to use the assets beyond the lease term. | |
Intangible assets | Intangible assets Patents and trademarks Separately acquired patents and trademarks are shown at historical cost. Trademarks have an indefinite useful life. Patents have been assessed to have a 13-year useful life. Amortisation shall begin when the patents are available for use. At that point, they will be carried at cost less accumulated amortisation and impairment losses. Intangible assets with an indefinite useful life or that are not yet available for use are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. 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 2023 and 2022. | 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. |
Right-of-use leased assets | Right-of-use leased assets A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. The Company has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. | |
Lease liabilities | Lease Liabilities A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index, or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. | |
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 AASB 13 (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. 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 | 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. | 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 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 | 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. |
Adoption of new and revised standards | Adoption of new and revised standards The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. | |
Accounting standards and interpretations issued but not yet effective | Accounting standards and interpretations issued but not yet effective Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective and have not been adopted by the Group for the annual reporting period ended 30 June 2023 and are not material to the disclosure in these accounts. | 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. |
Other Income (Tables)
Other Income (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Other Income [Abstract] | |
Schedule of Other Income | Consolidated 2023 2022 Other income (point in time) $ $ Interest 362,766 6,271 Refundable R&D tax offset 1,013,879 782,383 1,376,645 788,654 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Information [Abstract] | ||
Schedule of Revenue and Expenses for the Period and Assets and Liabilities | 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 2023 Psychedelic products Cannabinoid Products Corporate Consolidated $ $ $ $ Revenue from external customers - - - - Interest revenue - (129 ) 362,895 362,766 Other revenue - 1,013,879 - 1,013,879 Other expenses (1,092,033 ) (9,121,608 ) (11,142,562 ) (21,356,203 ) Segment loss after income tax (1,092,033 ) (8,107,858 ) (10,779,667 ) (19,979,558 ) Segment assets 881,808 53,359,216 34,349,676 88,590,700 Segment liabilities (433,278 ) (2,395,958 ) (1,632,597 ) (4,461,833 ) 30 June 2022 Psychedelic products Cannabinoid 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 ) | 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 Cannabinoid 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 Cannabinoid 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. |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax [Abstract] | ||
Schedule of Income Tax Benefit on Pre-Tax Accounting Loss from Operations Reconciles | 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 2023 2022 $ $ Accounting loss before tax (19,979,558 ) (14,903,909 ) Income tax benefit at the applicable tax rate of 25% (2022: 26%) 4,994,890 3,725,977 Non-deductible expenses (1,259,881 ) (564,872 ) Non-assessable income 253,439 195,596 Deferred tax assets not recognized (3,988,448 ) (3,356,701 ) Income tax benefit - - Unrecognized Deferred Tax Asset Deferred tax asset not recognized in the financial statements: Unused tax losses 29,636,125 24,845,264 Net unrecognized tax benefit at 25% (2022: 26%) 7,409,031 6,211,316 | 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 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Loss Per Share [Abstract] | ||
Schedule of Loss Per Share | Consolidated 2023 2022 $ $ Basic loss per share - cents per share (1.30 ) (1.25 ) 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 (19,979,558 ) (14,903,909 ) - Weighted average number of ordinary shares (number) 1,536,826,010 1,191,154,011 | 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 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | ||
Schedule of Cash and Cash Equivalents | Consolidated 2023 2022 $ $ Cash at bank and on hand 33,363,228 37,500,931 33,363,228 37,500,931 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 (19,979,558 ) (14,903,909 ) Adjustments to reconcile net income to net cash used in operating activities: Share-based payments 3,191,640 1,464,550 Depreciation and amortisation 130,946 - Foreign exchange gain (6,428 ) (594,394 ) Changes in net assets and liabilities: (Increase)/Decrease in receivables 7,240 (92,320 ) (Increase)/Decrease in other current assets (951,221 ) 53,447 Increase/(Decrease) in trade payables and accrued expenses 1,561,321 1,111,080 Increase/(Decrease) in other liabilities 103,235 154,173 Cash flows used in operations (15,942,825 ) (12,807,373 ) | 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 ) |
Trade and Other Receivables (_2
Trade and Other Receivables (Current) (Tables) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Trade and other receivables (current) [Abstract] | ||
Schedule of Trade and Other Receivables (Current) | Current Consolidated 2023 2022 $ $ GST recoverable 287,478 294,717 287,478 294,717 | Current Consolidated 2022 2021 $ $ Other receivables - 53,447 GST recoverable 294,717 115,641 294,717 169,088 |
Other Assets (Current) (Tables)
Other Assets (Current) (Tables) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Other Assets (Current) [Abstract] | ||
Schedule of Other Assets (Current) | Prepayments 1 935,172 59,836 Office rental bond 100,009 24,124 1,035,181 83,960 1 Prepayments consist prepaid clinical trial insurances, prepaid R&D expenditure relating to PsiGAD and IHL-675A clinical trials and scientific, marketing, and adverting subscription services. | |
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 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Non-Current) (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment (Non-Current) [Abstract] | |
Schedule of Property, Plant and Equipment (Non-Current) | Furniture, Total $ $ Year ended 30 June 2023 Opening net book amount - - Additions 476,873 476,873 Depreciation charge (33,221 ) (33,221 ) Closing net book amount 443,652 443,652 At 30 June 2023 Cost 476,873 476,873 Accumulated depreciation and impairment (33,221 ) (33,221 ) Net book amount 443,652 443,652 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Intangible Assets [Abstract] | |
Schedule of Intangible Assets | Patents Trademarks Other 3 Total $ $ $ $ Year ended 30 June 2023 Opening net book amount - - - - Acquisition of assets 1 22,822,000 28,904,000 991,000 52,717,427 Amortisation charge 2 - - - - Closing net book amount 22,822,000 28,904,000 991,000 52,717,427 At 30 June 2023 Cost 22,822,000 28,904,000 991,000 52,717,427 Accumulated amortization and impairment2 - - - - Net book amount 22,822,000 28,904,000 991,000 52,717,427 1 On 4 August 2022, the Company completed the acquisition of APIRx Pharmaceuticals via the issuance of 218,169,506 IHL ordinary shares to the stakeholders of APIRx in an all–scrip transaction. As substantially all of the fair value of the assets acquired in the transaction relates to intangible assets (patents, trademarks, active clinical and pre-clinical research and development projects), the transaction has been determined to be an asset acquisition and not a business combination. In addition to the shares issued to APIRx, the Company issued 13,090,170 IHL ordinary shares & 9,000,000 IHL options to Ryba LLC as part of their engagement terms as lead M&A advisors, which were included in the cost of the assets acquired. The total cost was allocated to the acquired assets on the basis of the assets’ relative fair values. 2 Patents have been assessed to have a 13-year useful life; trademarks have an indefinite useful life. There has been no amortisation at period end as the assets are not available for use yet. 3 Other intangibles relates to the fair value of other IP assets acquired, including pending or inactive patents. |
Schedule of key Assumptions Were used in the Relief From Royalty Model | The following key assumptions were used in the Relief from Royalty model: Patents Trademarks Royalty rate 1 5.25 % 6.25 % Terminal growth rate 2 N/A 11.20 % Post-tax discount rate 3 42.5 % 42.5 % Discount rate premium 4 1.00 % 1.00 % Tax rate 5 30.00 % 30.00 % Compound annual revenue growth rate 6 10.18 % 10.18 % 1 The royalty rates (a percentage of gross revenue) used in the valuation models is based on rates observed in the market. 2 The terminal growth rate is a blended rate based on the relative proportion of revenue generated by each Trademark at the end of the forecast period, and the expected market growth of the drugs market specific to the indications treated by the drug candidates under those Trademarks. 3 The discount rate applied has been determined with reference to the rates of return expected by venture capitalists investing in early-stage companies based on academic research and empirical evidence. 4 Intangible assets, by their nature, generally carry more risk than tangible assets and therefore, the return required for tangible assets such as working capital and fixed assets is typically lower than the company discount rate, and the return required for intangible assets is higher than the discount rate. 5 The tax rate applied in the valuation model is based on the Australian corporate tax rate of 30.0%. 6 Compounded annual growth rate over 10 years from FY25-35. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Right of Use Assets | Consolidated 2023 2022 $ $ Amounts recognised in statement of financial position Right-of-use assets Right-of-use assets 1 841,460 - Depreciation (97,726 ) - 743,734 - 1 For the year ended 30 June 2023, the Group entered into a three new lease agreement for its corporate head office in Sydney, Melbourne office and Clarion Clinic site. The leases have four, five and three-year terms respectively. |
Schedule of Lease Liabilities | Current 170,656 - Non-current 616,087 - 786,743 - |
Schedule of Amounts Recognised in Statement of Comprehensive Income | Depreciation charge of right-of-use assets 97,726 - Net finance expenses 33,609 - 131,335 - |
Trade and Other Payables (Cur_2
Trade and Other Payables (Current) (Tables) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Trade and Other Payables (Current) [Abstract] | ||
Schedule of Trade and Other Payables (Current) | Consolidated 2023 2022 $ $ Trade payables 2,707,441 1,300,696 Accrued expenses 641,031 415,449 Employee leave entitlements 326,618 294,388 3,675,090 2,010,533 | |
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 |
Issued Capital (Tables)
Issued Capital (Tables) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Issued Capital [Abstract] | ||
Schedule of Issued Capital | Consolidated 2023 2022 $ $ 150,842,248 86,586,794 | Consolidated 2022 2021 $ $ 86,586,794 45,852,107 |
Schedule of Ordinary Shares Movements During Years | Consolidated 2023 2023 2022 2022 $ No. of shares $ No. of shares (a) Ordinary shares - movements during year At start of year 86,586,794 1,292,334,028 45,852,106 1,068,411,224 Issues of new shares – placements 1 13,000,000 63,414,635 400,000 5,000,000 Issues of new shares – acquistion 2 49,088,139 218,169,506 - - Issues of new shares – employees and directors’ - - - 10,000,000 Exercise of options 2,027 2,027 40,274,243 207,650,638 Shares in lieu of advisor fees 3 2,945,288 13,090,170 450,000 1,272,166 Share issue costs 4 (780,000 ) - (389,555 ) - At end of year 150,842,248 1,587,010,366 86,586,794 1,292,334,028 1 On 9 December 2022, the Group raised $13 million from a placement of 63,414,635 shares with a small consortium of US and international institutional investors with significant healthcare experience in the US, Europe and Asia. 2 On 4 August 2022, the Company completed the acquisition on APIRx Pharmaceuticals via the issuance of 218,169,506 IHL ordinary shares to the stakeholders of APIRx in an all–scrip transaction. 3 On 4 August 2022, the Company issued 13,090,170 IHL ordinary shares to Ryba LLC as lead M&A Advisors on the APIRx acquisition. 4 On 9 December 2022, the Group incurred $780k of share issue cost from Bell Potter relating to the share placement completed during the period. | 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. |
Reserves (Tables)
Reserves (Tables) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Reserves [Abstract] | ||
Schedule of Equity Based Premium Reserve | Equity based premium reserve Consolidated 2023 2022 $ $ Balance at 1 July 2022 8,077,191 6,612,641 Options issued to advisors 1 684,000 - Issues of new options – placement 2 108,257 - Equity instruments issued to management and directors 3 3,191,640 1,464,550 At 30 June 2023 12,061,087 8,077,191 1 During the year ended 30 June 2023, the Company issued 9,000,000 options to Ryba LLC pursuant to the mandate executed between the companies in November 2021. As the transaction between the Company and APIRx was deemed complete on 04 August 2022 the options were issued. 2 During the year ended 30 June 2023, the Company issued 105,800,651 options to existing shareholders for nominal amount as part of a loyalty placement offer. 3 Relates to the amortization of shares and options issued as share-based payments during the current and prior periods. | 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%. |
Share Based Payments (Tables)
Share Based Payments (Tables) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share Based Payments [Abstract] | ||
Schedule of Share Options Were Issued to Employees and Consultants as Share Based Payments | The following share options were issued to employees and consultants as share based payments during the year ended 30 June 2023: Options Number Grant Expiry Exercise Total Options granted to Directors Unlisted Options 2,500,000 29-Nov-22 31-May-24 $ 1.00 $ 57,500 Unlisted Options 2,500,000 29-Nov-22 31-May-24 $ 1.50 $ 30,000 Options granted to third parties Unlisted Options 3,000,000 04-Aug-22 04-Aug-25 $ 0.61 $ 243,000 Unlisted Options 3,000,000 04-Aug-22 04-Aug-25 $ 0.69 $ 228,000 Unlisted Options 3,000,000 04-Aug-22 04-Aug-25 0.76 $ 213,000 Total options 14,000,000 $ 771,500 Options Number Grant 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 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 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 Share Options Granted is Estimated as at the Grant Date Using a Black-Scholes | 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 2023: $1.00 $1.50 $0.612 $0.69 $0.765 31-May-24 31-May-24 4-Aug-25 4-Aug-25 4-Aug-25 Number 2,500,000 2,500,000 3,000,000 3,000,000 3,000,000 Expected volatility (%) 90 % 90 % 90 % 90 % 90 % Risk-free interest rate (%) 3.18 % 3.18 % 2.86 % 2.86 % 2.86 % Expected life of option (years) 1.5 1.5 3.0 3.0 3.0 Exercise price (cents) 100 150 61.2 69.0 76.5 Grant date share price (cents) 23.5 23.5 22.5 22.5 22.5 Vesting date 29-Nov-22 29-Nov-22 4-Aug-22 4-Aug-22 4-Aug-22 $0.26 $0.31 $0.35 $0.26 $0.31 $0.35 $0.26 $0.31 $0.35 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 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 $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 |
Schedule of Number of Performance Shares and Performance Rights | Movement in number of Performance Shares and Performance Rights for the years ended: Security Description $0.$0.08 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. |
Remuneration of Auditors (Table
Remuneration of Auditors (Tables) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Remuneration of Auditors [Abstract] | ||
Schedule of Remuneration of Auditors | Consolidated Consolidated 2023 2022 $ $ Audit or review of the financial reports of the company Amounts received & receivable by the auditor: Audit services – PKF Brisbane Audit 97,750 85,000 Audit services – HLB Mann Judd - 23,138 Audit services – Withum Smith & Brown (US auditor) - 357,208 97,750 465,346 | 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 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Financial Instruments [Abstract] | ||
Schedule of Contractual Liabilities | The Group’s contractual liabilities at 30 June 2023 were as follows: Description Less than 1 to 3 3 months 1 to 5 Total Consolidated $ $ $ $ $ Payables & accruals 3,298,131 236,514 140,445 - 3,675,090 3,298,131 236,514 140,445 - 3,675,090 The Group’s contractual liabilities at 30 June 2022 were as follows: Description Less than 1 to 3 3 months 1 to 5 Total Consolidated $ $ $ $ $ Payables & accruals 1,828,527 - - - 1,828,527 1,828,527 - - - 1,828,527 | Description Less than 1 1 to 3 3 months to 1 to 5 Total Consolidated $ $ $ $ $ Payables & accruals 1,828,527 - - - 1,828,527 1,828,527 - - - 1,828,527 Description Less than 1 1 to 3 3 months to 1 to 5 Total Consolidated $ $ $ $ $ Payables & accruals 614,834 - - - 614,834 614,834 - - - 614,834 |
Key Management Personnel Comp_2
Key Management Personnel Compensation and Related Party Disclosure (Tables) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Key Management Personnel compensation and related party disclosure [Abstract] | ||
Schedule of Key Management Personnel Compensation | Key management personnel compensation 2023 2022 $ $ Short-term employee benefits 2,296,996 1,333,992 Post-employment benefits 66,757 47,547 Share based payments 2,715,156 1,028,634 Total KMP compensation 5,078,909 2,410,173 | 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 |
Parent Entity Disclosures (Tabl
Parent Entity Disclosures (Tables) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Parent Entity Disclosures [Abstract] | ||
Schedule of Financial Statements for the Parent Entity | The individual financial statements for the parent entity show the following aggregate amounts Statement of financial position 2023 2022 Financial Position $ $ Current assets 33,677,744 37,559,819 Non-Current assets 671,932 - Total assets 34,349,676 37,559,819 Current liabilities (1,260,966 ) (1,078,404 ) Non-current liabilities (371,631 ) - Total liabilities (1,632,597 ) (1,078,404 ) Net assets 32,717,079 36,481,415 Issued capital 150,842,248 86,586,794 Reserves 12,061,087 8,077,191 Accumulated losses (130,186,256 ) (58,182,570 ) Shareholders’ equity 32,717,079 36,481,415 | 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 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Revenue [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 |
Significant Accounting Polici_2
Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Significant Accounting Policies (Details) [Line Items] | ||
Total comprehensive loss after income tax (in Dollars) | $ 19,980 | $ 14,900 |
Net cash outflows from operations (in Dollars) | 15,940 | 12,800 |
Held total cash (in Dollars) | $ 33,360 | $ 37,500 |
Intangible assets finite useful life | 10 years | 10 years |
Patents and Trademarks [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Intangible assets finite useful life | 13 years | |
Buildings [Member] | Minimum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Property plant and equipment useful lives | 25 years | |
Buildings [Member] | Maximum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Property plant and equipment useful lives | 40 years | |
Machinery [Member] | Minimum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Property plant and equipment useful lives | 10 years | |
Machinery [Member] | Maximum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Property plant and equipment useful lives | 15 years | |
Vehicles [member] | Minimum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Property plant and equipment useful lives | 3 years | |
Vehicles [member] | Maximum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Property plant and equipment useful lives | 5 years | |
Furniture, fittings and equipment [Member] | Minimum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Property plant and equipment useful lives | 3 years | |
Furniture, fittings and equipment [Member] | Maximum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Property plant and equipment useful lives | 8 years |
Other Income (Details) - Schedu
Other Income (Details) - Schedule of Other Income - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Other Income [Abstract] | |||
Interest | $ 362,766 | $ 6,271 | $ 2,679 |
Refundable R&D tax offset | 1,013,879 | 782,383 | 82,807 |
Total other income | $ 1,376,645 | $ 788,654 | $ 75,748 |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Information [Abstract] | ||
Number of operating segments | 3 | 3 |
Number of geographical segment | 1 | |
Percentage of total revenue from medicinal cannabis | 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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | ||
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 | (1,092,033) | (883,708) | ||
Segment loss after income tax | (1,092,033) | (883,708) | ||
Segment assets | 881,808 | 56,058 | ||
Segment liabilities | (433,278) | (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 | (129) | 96 | 6 | |
Other revenue | 1,013,879 | 782,383 | ||
Other expenses | (9,121,608) | (4,642,796) | ||
Segment loss after income tax | (8,107,858) | (3,860,317) | (3,304,769) | |
Segment assets | 53,359,216 | 263,731 | 104,267 | |
Segment liabilities | (2,395,958) | (577,819) | ||
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 | 362,895 | 6,175 | 2,673 | |
Other revenue | 73,069 | |||
Other expenses | (11,142,562) | (10,166,059) | ||
Segment loss after income tax | (10,779,667) | (10,159,884) | (7,299,714) | |
Segment assets | 34,349,676 | 37,559,819 | $ 9,222,528 | |
Segment liabilities | (1,632,597) | (1,078,404) | ||
Consolidated [Member] | ||||
Segment Information (Details) - Schedule of Revenue and Expenses for the Period and Assets and Liabilities [Line Items] | ||||
Revenue from external customers | ||||
Interest revenue | 362,766 | 6,271 | ||
Other revenue | 1,013,879 | 782,383 | ||
Other expenses | (21,356,203) | (15,692,563) | ||
Segment loss after income tax | (19,979,558) | (14,903,909) | ||
Segment assets | 88,590,700 | 37,879,608 | ||
Segment liabilities | $ (4,461,833) | $ (2,010,533) | ||
[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 - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Income Tax Benefit on Pre-Tax Accounting Loss from Operations Reconciles [Abstract] | |||
Accounting loss before tax | $ (19,979,558) | $ (14,903,909) | $ (11,372,799) |
Income tax benefit at the applicable tax rate of 25% (2022: 26%) | 4,994,890 | 3,725,977 | 2,956,928 |
Non-deductible expenses | (1,259,881) | (564,872) | (1,192,112) |
Non-assessable income | 253,439 | 195,596 | |
Deferred tax assets not recognized | (3,988,448) | (3,356,701) | (1,764,816) |
Income tax benefit | |||
Unrecognized Deferred Tax Asset | |||
Unused tax losses | 29,636,125 | 24,845,264 | |
Net unrecognized tax benefit at 25% (2022: 26%) | $ 7,409,031 | $ 6,211,316 | $ 5,425,637 |
Income Tax (Details) - Schedu_2
Income Tax (Details) - Schedule of Income Tax Benefit on Pre-Tax Accounting Loss from Operations Reconciles (Parentheticals) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Income Tax Benefit on Pre-Tax Accounting Loss from Operations Reconciles [Abstract] | ||
tax rate | 25% | 26% |
Tax benefit rate | 25% | 26% |
Loss Per Share (Details) - Sche
Loss Per Share (Details) - Schedule of Loss Per Share - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Loss Per Share [Abstract] | |||
Basic loss per share - cents per share | $ (1.3) | $ (1.25) | $ (1.16) |
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 | $ (19,979,558) | $ (14,903,909) | $ (11,372,799) |
- Weighted average number of ordinary shares (number) | 1,536,826,010 | 1,191,154,011 |
Dividends (Details)
Dividends (Details) | Jun. 30, 2022 USD ($) |
Dividends [Abstract] | |
Dividend |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - Schedule of Cash and Cash Equivalents - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Cash and Cash Equivalents [Abstract] | |||
Cash at bank and on hand | $ 33,363,228 | $ 37,500,931 | $ 9,123,617 |
Total | 33,363,228 | 37,500,931 | 9,123,617 |
Reconciliation of loss for the year to net cash flows from operating activities: | |||
Loss after income tax | (19,979,558) | (14,903,909) | (11,372,799) |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Share-based payments | 3,191,640 | 1,464,550 | 600,043 |
Depreciation and amortisation | 130,946 | (15,484) | |
Foreign exchange gain | (6,428) | (594,394) | 91,354 |
Changes in net assets and liabilities: | |||
(Increase)/Decrease in receivables | 7,240 | (92,320) | 214,903 |
(Increase)/Decrease in other current assets | (951,221) | 53,447 | 172 |
Increase/(Decrease) in trade payables and accrued expenses | 1,561,321 | 1,111,080 | (291,311) |
Increase/(Decrease) in other liabilities | 103,235 | 154,173 | (101,161) |
Cash flows used in operations | $ (15,942,825) | $ (12,807,373) | $ (6,909,780) |
Trade and Other Receivables (_3
Trade and Other Receivables (Current) (Details) - Schedule of Trade and Other Receivables (Current) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Trade and Other Receivables (Current) (Details) - Schedule of Trade and Other Receivables (Current) [Line Items] | |||
Total trade and other receivables (Current) | $ 287,478 | $ 294,717 | $ 169,088 |
GST recoverable [Member] | |||
Trade and Other Receivables (Current) (Details) - Schedule of Trade and Other Receivables (Current) [Line Items] | |||
Total trade and other receivables (Current) | $ 287,478 | $ 294,717 |
Other Assets (Current) (Details
Other Assets (Current) (Details) - Schedule of Other Assets (Current) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of other assets (current) [Abstract] | ||||
Prepayments | [1] | $ 935,172 | $ 59,836 | |
Office rental bond | 100,009 | 24,124 | ||
Other assets, net | $ 1,035,181 | $ 83,960 | $ 36,090 | |
[1] Prepayments consist prepaid clinical trial insurances, prepaid R&D expenditure relating to PsiGAD and IHL-675A clinical trials and scientific, marketing, and adverting subscription services. |
Property, Plant and Equipment_3
Property, Plant and Equipment (Non-Current) (Details) - Schedule of Property, Plant and Equipment (Non-Current) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment (Non-Current) (Details) - Schedule of Property, Plant and Equipment (Non-Current) [Line Items] | ||
Opening net book amount | ||
Additions | 476,873 | |
Depreciation charge | (33,221) | |
Closing net book amount | 443,652 | |
Cost | 476,873 | |
Accumulated depreciation and impairment | (33,221) | |
Net book amount | 443,652 | |
Furniture, fittings, and equipment [Member] | ||
Property, Plant and Equipment (Non-Current) (Details) - Schedule of Property, Plant and Equipment (Non-Current) [Line Items] | ||
Opening net book amount | ||
Additions | 476,873 | |
Depreciation charge | (33,221) | |
Closing net book amount | 443,652 | |
Cost | 476,873 | |
Accumulated depreciation and impairment | (33,221) | |
Net book amount | $ 443,652 |
Intangible Assets (Details)
Intangible Assets (Details) - shares | 12 Months Ended | ||||
Aug. 04, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 09, 2022 | |
Intangible Assets (Details) [Line Items] | |||||
Issuance of ordinary shares | 13,090,170 | 63,414,635 | |||
Useful life | 13 years | 13 years | |||
Growth rate | 11.20% | ||||
Tax rate | 30% | 25% | 26% | ||
APIRx Pharmaceuticals [Member] | |||||
Intangible Assets (Details) [Line Items] | |||||
Issuance of ordinary shares | 218,169,506 | ||||
Ryba LLC [Member] | |||||
Intangible Assets (Details) [Line Items] | |||||
Issuance of ordinary shares | 9,000,000 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Intangible Assets | 12 Months Ended | |
Jun. 30, 2023 USD ($) | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Opening net book amount | ||
Acquisition of assets | 52,717,427 | [1] |
Amortisation charge | [2] | |
Closing net book amount | 52,717,427 | |
Cost | 52,717,427 | |
Accumulated amortization and impairment | [2] | |
Net book amount | 52,717,427 | |
Patents [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Opening net book amount | ||
Acquisition of assets | 22,822,000 | [1] |
Amortisation charge | [2] | |
Closing net book amount | 22,822,000 | |
Cost | 22,822,000 | |
Accumulated amortization and impairment | [2] | |
Net book amount | 22,822,000 | |
Trademarks [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Opening net book amount | ||
Acquisition of assets | 28,904,000 | [1] |
Amortisation charge | [2] | |
Closing net book amount | 28,904,000 | |
Cost | 28,904,000 | |
Accumulated amortization and impairment | [2] | |
Net book amount | 28,904,000 | |
Other intangibles [Member] | ||
Intangible Assets (Details) - Schedule of Intangible Assets [Line Items] | ||
Opening net book amount | [3] | |
Acquisition of assets | 991,000 | [1],[3] |
Amortisation charge | [2],[3] | |
Closing net book amount | 991,000 | [3] |
Cost | 991,000 | [3] |
Accumulated amortization and impairment | [2],[3] | |
Net book amount | $ 991,000 | [3] |
[1] On 4 August 2022, the Company completed the acquisition of APIRx Pharmaceuticals via the issuance of 218,169,506 IHL ordinary shares to the stakeholders of APIRx in an all–scrip transaction. As substantially all of the fair value of the assets acquired in the transaction relates to intangible assets (patents, trademarks, active clinical and pre-clinical research and development projects), the transaction has been determined to be an asset acquisition and not a business combination. In addition to the shares issued to APIRx, the Company issued 13,090,170 IHL ordinary shares & 9,000,000 IHL options to Ryba LLC as part of their engagement terms as lead M&A advisors, which were included in the cost of the assets acquired. The total cost was allocated to the acquired assets on the basis of the assets’ relative fair values. Patents have been assessed to have a 13-year useful life; trademarks have an indefinite useful life. There has been no amortisation at period end as the assets are not available for use yet. Other intangibles relates to the fair value of other IP assets acquired, including pending or inactive patents. |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of key Assumptions Were used in the Relief From Royalty Model | 12 Months Ended | |
Jun. 30, 2023 | ||
Patents [Member] | ||
Intangible Assets (Details) - Schedule of key Assumptions Were used in the Relief From Royalty Model [Line Items] | ||
Royalty rate | 5.25% | [1] |
Terminal growth rate | [2] | |
Post-tax discount rate | 42.50% | [3] |
Discount rate premium | 1% | [4] |
Tax rate | 30% | [5] |
Compound annual revenue growth rate | 10.18% | [6] |
Trademarks [Member] | ||
Intangible Assets (Details) - Schedule of key Assumptions Were used in the Relief From Royalty Model [Line Items] | ||
Royalty rate | 6.25% | [1] |
Terminal growth rate | 11.20% | [2] |
Post-tax discount rate | 42.50% | [3] |
Discount rate premium | 1% | [4] |
Tax rate | 30% | [5] |
Compound annual revenue growth rate | 10.18% | [6] |
[1] The royalty rates (a percentage of gross revenue) used in the valuation models is based on rates observed in the market. The terminal growth rate is a blended rate based on the relative proportion of revenue generated by each Trademark at the end of the forecast period, and the expected market growth of the drugs market specific to the indications treated by the drug candidates under those Trademarks. The discount rate applied has been determined with reference to the rates of return expected by venture capitalists investing in early-stage companies based on academic research and empirical evidence. Intangible assets, by their nature, generally carry more risk than tangible assets and therefore, the return required for tangible assets such as working capital and fixed assets is typically lower than the company discount rate, and the return required for intangible assets is higher than the discount rate. The tax rate applied in the valuation model is based on the Australian corporate tax rate of 30.0%. Compounded annual growth rate over 10 years from FY25-35. |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Right of Use Assets - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
Schedule of Right of Use Assets [Abstract] | |||
Right-of-use assets | $ 841,460 | [1] | |
Depreciation | (97,726) | ||
Right of use, Assets | $ 743,734 | ||
[1] For the year ended 30 June 2023, the Group entered into a three new lease agreement for its corporate head office in Sydney, Melbourne office and Clarion Clinic site. The leases have four, five and three-year terms respectively. |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Lease Liabilities - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule of Lease Liabilities [Abstract] | ||
Current | $ 170,656 | |
Non-current | 616,087 | |
Lease liability, Total | $ 786,743 |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of Amounts Recognised in Statement of Comprehensive Income - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Amounts Recognised in Statement of Comprehensive Income [Abstract] | ||
Depreciation charge of right-of-use assets | $ 97,726 | |
Net finance expenses | 33,609 | |
comprehensive income, Total | $ 131,335 |
Trade and Other Payables (Cur_3
Trade and Other Payables (Current) (Details) - Schedule of Trade and Other Payables (Current) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Schedule of Trade and Other Payables (Current) [Abstract] | |||
Trade payables | $ 2,707,441 | $ 1,300,696 | $ 233,117 |
Accrued expenses | 641,031 | 415,449 | 381,717 |
Employee leave entitlements | 326,618 | 294,388 | |
Total | $ 3,675,090 | $ 2,010,533 | $ 755,049 |
Issued Capital (Details)
Issued Capital (Details) - USD ($) $ in Thousands | Dec. 09, 2022 | Aug. 04, 2022 |
Issued Capital [Abstract] | ||
Issues of new shares – placements amount (in Dollars) | $ 13,000 | |
Issues of new shares – placements | 63,414,635 | 13,090,170 |
Issue of new shares acquisition | 218,169,506 | |
Ordinary shares | 13,090,170 | |
Share issue costs (in Dollars) | $ 780 |
Issued Capital (Details) - Sche
Issued Capital (Details) - Schedule of Issued Capital - shares | Jun. 30, 2023 | Jun. 30, 2022 |
Schedule of Issued Capital [Abstract] | ||
Ordinary shares | 150,842,248 | 86,586,794 |
Issued Capital (Details) - Sc_2
Issued Capital (Details) - Schedule of Ordinary Shares Movements During Years - Ordinary shares [member] - USD ($) | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | |||
Issued Capital (Details) - Schedule of Ordinary Shares Movements During Years [Line Items] | ||||
At start of year | $ 86,586,794 | $ 45,852,106 | ||
Number of shares, At start of year | 1,292,334,028 | 1,068,411,224 | ||
Issues of new shares – placements | [1] | $ 13,000,000 | $ 400,000 | |
Number of shares, Issues of new shares – placements | [1] | 63,414,635 | 5,000,000 | |
Issues of new shares – acquistion2 | [2] | $ 49,088,139 | ||
Number of shares, Issues of new shares – acquistion2 | [2] | 218,169,506 | ||
Issues of new shares – employees and directors’ | [3] | |||
Number of shares, Issues of new shares – employees and directors’ | 10,000,000 | |||
Exercise of options | $ 2,027 | $ 40,274,243 | ||
Number of shares, Exercise of options | 2,027 | 207,650,638 | ||
Shares in lieu of advisor fees | [4] | $ 2,945,288 | $ 450,000 | |
Number of shares, Shares in lieu of advisor fees | [4] | 13,090,170 | 1,272,166 | |
Share issue costs | [5] | $ (780,000) | $ (389,555) | |
Number of shares, Share issue costs | [5] | |||
At end of year | $ 150,842,248 | $ 86,586,794 | ||
Number of shares, At end of year | 1,587,010,366 | 1,292,334,028 | ||
[1] On 9 December 2022, the Group raised $13 million from a placement of 63,414,635 shares with a small consortium of US and international institutional investors with significant healthcare experience in the US, Europe and Asia. On 4 August 2022, the Company completed the acquisition on APIRx Pharmaceuticals via the issuance of 218,169,506 IHL ordinary shares to the stakeholders of APIRx in an all–scrip transaction. 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. On 4 August 2022, the Company issued 13,090,170 IHL ordinary shares to Ryba LLC as lead M&A Advisors on the APIRx acquisition. On 9 December 2022, the Group incurred $780k of share issue cost from Bell Potter relating to the share placement completed during the period. |
Reserves (Details)
Reserves (Details) | 12 Months Ended | ||
Jun. 30, 2023 shares | Jun. 30, 2021 $ / shares shares | Jun. 30, 2020 $ / shares shares | |
Reserves (Details) [Line Items] | |||
Options exercisable shares (in Shares) | shares | 9,000,000 | 40,000,000 | 33,000,000 |
Shares issued | 105,800,651 | ||
Investor issued per share | $ 0.08 | $ 0.08 | |
Share price | $ 0.04 | ||
Risk-free percentage | 0.24% | ||
Volatility percentage | 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 | $ 0.25 | ||
Addition Units [Member] | |||
Reserves (Details) [Line Items] | |||
Options exercisable shares (in Shares) | shares | 30,164,690 |
Reserves (Details) - Schedule o
Reserves (Details) - Schedule of Equity Based Premium Reserve - USD ($) | 12 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | ||||
Schedule of Equity Based Premium Reserve [Abstract] | ||||||
Balance at beginning | $ 8,077,191 | $ 6,612,641 | $ 1,490,588 | |||
Options issued to advisors | [1] | 684,000 | ||||
Issues of new options – placement | [2] | 108,257 | ||||
Equity instruments issued to management and directors | 3,191,640 | [3] | 1,464,550 | [3] | 600,043 | |
Balance at ending | $ 12,061,087 | $ 8,077,191 | $ 6,612,641 | |||
[1] During the year ended 30 June 2023, the Company issued 9,000,000 options to Ryba LLC pursuant to the mandate executed between the companies in November 2021. As the transaction between the Company and APIRx was deemed complete on 04 August 2022 the options were issued. During the year ended 30 June 2023, the Company issued 105,800,651 options to existing shareholders for nominal amount as part of a loyalty placement offer. |
Share Based Payments (Details)
Share Based Payments (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share Based Payments (Details) [Line Items] | |||
Total fair value | $ 1,866,328 | $ 3,588,000 | |
Unrecognized compensation cost | $ 895,318 | $ 2,743,854 | |
Exercise price of options outstanding (in Dollars per share) | $ 0.35 | $ 1.5 | |
Weighted-average period term | 1 year 4 months 20 days | 1 year 4 months 20 days | |
Ordinary shares issued (in Shares) | 13,090,170 | ||
Performance rights converted into ordinary share (in Shares) | 30,303,593 | ||
Performance rights expired (in Shares) | 11,250,000 | ||
Options [Member] | |||
Share Based Payments (Details) [Line Items] | |||
Exercise price of options outstanding (in Dollars per share) | $ 0.08 | $ 0.35 | |
IHL [Member] | |||
Share Based Payments (Details) [Line Items] | |||
Ordinary shares issued (in Shares) | 218,169,506 | ||
Option Contract [Member] | |||
Share Based Payments (Details) [Line Items] | |||
Unrecognized compensation cost | $ 615,452 | $ 1,853,263 | |
Recognized compensation cost | $ 1,325,311 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Options granted to third parties | |||
Total options | 14,000,000 | 10,000,000 | 70,164,690 |
Total options | $ 771,500 | $ 2,371,867 | $ 4,521,507 |
Unlisted options One [Member] | Options granted to Directors [Member] | |||
Options granted to Directors | |||
Number of options granted to Directors | 2,500,000 | 1,399,999 | |
Grant date of options granted to Directors | Nov. 29, 2022 | Jun. 09, 2022 | |
Expiry date of options granted to Directors | May 31, 2024 | Jul. 01, 2026 | |
Exercise price of options granted to Directors | $ 1 | $ 0.31 | |
Total fair value of options granted to Directors | $ 57,500 | $ 309,400 | |
Unlisted options One [Member] | Options granted to third parties [Member] | |||
Options granted to third parties | |||
Number of options granted to third parties | 3,000,000 | ||
Grant date of options granted to third parties | Aug. 04, 2022 | ||
Expiry date of options granted to third parties | Aug. 04, 2025 | ||
Exercise price of options granted to third parties | $ 0.69 | ||
Total fair value options granted to third parties | $ 228,000 | ||
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 Two [Member] | Options granted to Directors [Member] | |||
Options granted to Directors | |||
Number of options granted to Directors | 2,500,000 | 1,400,002 | |
Grant date of options granted to Directors | Nov. 29, 2022 | Jun. 09, 2022 | |
Expiry date of options granted to Directors | May 31, 2024 | Jul. 01, 2027 | |
Exercise price of options granted to Directors | $ 1.5 | $ 0.35 | |
Total fair value of options granted to Directors | $ 30,000 | $ 324,800 | |
Unlisted options Two [Member] | Options granted to third parties [Member] | |||
Options granted to third parties | |||
Number of options granted to third parties | 3,000,000 | ||
Grant date of options granted to third parties | Aug. 04, 2022 | ||
Expiry date of options granted to third parties | Aug. 04, 2025 | ||
Exercise price of options granted to third parties | $ 0.76 | ||
Total fair value options granted to third parties | $ 213,000 | ||
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 [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 third parties [Member] | |||
Options granted to third parties | |||
Number of options granted to third parties | 3,000,000 | ||
Grant date of options granted to third parties | Aug. 04, 2022 | ||
Expiry date of options granted to third parties | Aug. 04, 2025 | ||
Exercise price of options granted to third parties | $ 0.61 | ||
Total fair value options granted to third parties | $ 243,000 | ||
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 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 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 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 Share Options Granted is Estimated as at the Grant Date Using a Black-Scholes - $ / shares | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
$1.00 Options 31-May-24 [Member] | ||
Share Based Payments (Details) - Schedule of Share Options Granted is Estimated as at the Grant Date Using a Black-Scholes [Line Items] | ||
Number | 2,500,000 | |
Expected volatility (%) | 90% | |
Risk-free interest rate (%) | 3.18% | |
Expected life of option (years) | 1 year 6 months | |
Exercise price (cents) | $ 100 | |
Grant date share price (cents) | $ 23.5 | |
Vesting date | 29-Nov-22 | |
$1.50 Options 31-May-24 [Member] | ||
Share Based Payments (Details) - Schedule of Share Options Granted is Estimated as at the Grant Date Using a Black-Scholes [Line Items] | ||
Number | 2,500,000 | |
Expected volatility (%) | 90% | |
Risk-free interest rate (%) | 3.18% | |
Expected life of option (years) | 1 year 6 months | |
Exercise price (cents) | $ 150 | |
Grant date share price (cents) | $ 23.5 | |
Vesting date | 29-Nov-22 | |
$0.612 Options 4-Aug-25 [Member] | ||
Share Based Payments (Details) - Schedule of Share Options Granted is Estimated as at the Grant Date Using a Black-Scholes [Line Items] | ||
Number | 3,000,000 | |
Expected volatility (%) | 90% | |
Risk-free interest rate (%) | 2.86% | |
Expected life of option (years) | 3 years | |
Exercise price (cents) | $ 61.2 | |
Grant date share price (cents) | $ 22.5 | |
Vesting date | 4-Aug-22 | |
$0.69 Options 4-Aug-25 [Member] | ||
Share Based Payments (Details) - Schedule of Share Options Granted is Estimated as at the Grant Date Using a Black-Scholes [Line Items] | ||
Number | 3,000,000 | |
Expected volatility (%) | 90% | |
Risk-free interest rate (%) | 2.86% | |
Expected life of option (years) | 3 years | |
Exercise price (cents) | $ 69 | |
Grant date share price (cents) | $ 22.5 | |
Vesting date | 4-Aug-22 | |
$0.765 Options 4-Aug-25 [Member] | ||
Share Based Payments (Details) - Schedule of Share Options Granted is Estimated as at the Grant Date Using a Black-Scholes [Line Items] | ||
Number | 3,000,000 | |
Expected volatility (%) | 90% | |
Risk-free interest rate (%) | 2.86% | |
Expected life of option (years) | 3 years | |
Exercise price (cents) | $ 76.5 | |
Grant date share price (cents) | $ 22.5 | |
Vesting date | 4-Aug-22 | |
$0.26 Options 01-Jul-25 [Member] | ||
Share Based Payments (Details) - Schedule of Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 |
Remuneration of Auditors (Detai
Remuneration of Auditors (Details) - Schedule of Remuneration of Auditors - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Audit or review of the financial reports of the company | |||
Audit services | $ 23,138 | $ 37,785 | |
Total | $ 97,750 | 465,346 | $ 325,760 |
Audit services – PKF Brisbane Audit [Member] | |||
Audit or review of the financial reports of the company | |||
Audit services | 97,750 | 85,000 | |
Audit services – HLB Mann Judd [Member] | |||
Audit or review of the financial reports of the company | |||
Audit services | 23,138 | ||
Audit services – Withum Smith & Brown (US auditor) [Member] | |||
Audit or review of the financial reports of the company | |||
Audit services | $ 357,208 |
Financial Instruments (Details)
Financial Instruments (Details) - Schedule of Contractual Liabilities - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Financial Instruments (Details) - Schedule of Contractual Liabilities [Line Items] | |||
Payables & accruals | $ 3,675,090 | $ 1,828,527 | $ 614,834 |
Total, Payables & accruals | 3,675,090 | 1,828,527 | 614,834 |
Less than 1 month [Member] | |||
Financial Instruments (Details) - Schedule of Contractual Liabilities [Line Items] | |||
Payables & accruals | 3,298,131 | 1,828,527 | 614,834 |
Total, Payables & accruals | 3,298,131 | 1,828,527 | 614,834 |
1 to 3 months [Member] | |||
Financial Instruments (Details) - Schedule of Contractual Liabilities [Line Items] | |||
Payables & accruals | 236,514 | ||
Total, Payables & accruals | 236,514 | ||
3 months to 1 year [Member] | |||
Financial Instruments (Details) - Schedule of Contractual Liabilities [Line Items] | |||
Payables & accruals | 140,445 | ||
Total, Payables & accruals | 140,445 | ||
1 to 5 years [Member] | |||
Financial Instruments (Details) - Schedule of Contractual Liabilities [Line Items] | |||
Payables & accruals | |||
Total, Payables & accruals |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies [Abstract] | |
Percentage of commencement agreement | 50% |
Key Management Personnel Comp_3
Key Management Personnel Compensation and Related Party Disclosure (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Key Management Personnel Compensation and Related Party Disclosure (Details) [Line Items] | |||
Fees paid | $ 407,824 | $ 97,976 | |
Alignment Capital Pty Ltd [Member] | |||
Key Management Personnel Compensation and Related Party Disclosure (Details) [Line Items] | |||
Fees paid | 407,824 | ||
Cannvalate Pty Ltd [Member] | |||
Key Management Personnel Compensation and Related Party Disclosure (Details) [Line Items] | |||
Fees paid | 247,122 | ||
Mr Valentine [Member] | |||
Key Management Personnel Compensation and Related Party Disclosure (Details) [Line Items] | |||
Consulting fees invoiced | 254,000 | 240,000 | |
Mr Widdows [Member] | |||
Key Management Personnel Compensation and Related Party Disclosure (Details) [Line Items] | |||
Consulting fees invoiced | $ 160,000 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Key Management Personnel Compensation [Abstract] | |||
Short-term employee benefits | $ 2,296,996 | $ 1,333,992 | $ 761,231 |
Post-employment benefits | 66,757 | 47,547 | 38,877 |
Share based payments | 2,715,156 | 1,028,634 | 672,699 |
Total KMP compensation | $ 5,078,909 | $ 2,410,173 | $ 1,472,807 |
Details of the Controlled Ent_2
Details of the Controlled Entity (Details) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Incannex Pty Ltd Member | |||
Details of the Controlled Entity (Details) [Line Items] | |||
Subsidiary | 100% | 100% | 100% |
Incannex Healthcare Limited [Member] | |||
Details of the Controlled Entity (Details) [Line Items] | |||
Subsidiary | 100% | ||
Psychennex Pty Ltd [Member] | |||
Details of the Controlled Entity (Details) [Line Items] | |||
Subsidiary | 100% | 100% | 100% |
Events Subsequent to Reportin_2
Events Subsequent to Reporting Date (Details) | Aug. 05, 2022 shares |
Events Subsequent to Reporting Date [Abstract] | |
Issuance of ordinary shares | 218,169,497 |
Parent Entity Disclosures (Deta
Parent Entity Disclosures (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Guarantees [member] | |||
Parent Entity Disclosures (Details) [Line Items] | |||
Guarantees involving | $ 0 | ||
Contingent liabilities [Member] | |||
Parent Entity Disclosures (Details) [Line Items] | |||
Contingent liabilities | $ 0 |
Parent Entity Disclosures (De_2
Parent Entity Disclosures (Details) - Schedule of Financial Statements for the Parent Entity - Parent [member] - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Parent Entity Disclosures (Details) - Schedule of Financial Statements for the Parent Entity [Line Items] | ||
Current assets | $ 33,677,744 | $ 37,559,819 |
Non-Current assets | 671,932 | |
Total assets | 34,349,676 | 37,559,819 |
Current liabilities | (1,260,966) | (1,078,404) |
Non-current liabilities | (371,631) | |
Total liabilities | (1,632,597) | (1,078,404) |
Net assets | 32,717,079 | 36,481,415 |
Issued capital | 150,842,248 | 86,586,794 |
Reserves | 12,061,087 | 8,077,191 |
Accumulated losses | (130,186,256) | (58,182,570) |
Shareholders’ equity | $ 32,717,079 | $ 36,481,415 |
Revenue (Details) - Schedule of
Revenue (Details) - Schedule of Revenue - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Revenue [Abstract] | |||
Cannabinoid oils sales | $ 1,897,596 | ||
Total revenue | 1,897,596 | ||
(b) Other income | |||
Income from other arrangements | 35,569 | ||
Government grants | 37,500 | ||
Interest | $ 362,766 | 6,271 | 2,679 |
Refundable R&D tax offset | 782,383 | ||
Total other income | $ 1,376,645 | $ 788,654 | $ 75,748 |
Segment Information (Details)_2
Segment Information (Details) - Schedule of Revenue and Expenses for the Period and Assets and Liabilities - USD ($) | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Psychedelic products [Member] | ||||
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] | ||||
Schedule of Revenue and Expenses for the Period and Assets and Liabilities [Line Items] | ||||
Revenue from external customers | 1,897,596 | [1] | ||
Interest revenue | (129) | 96 | 6 | |
Other revenue | 1,013,879 | 782,383 | ||
Other expenses | (4,642,796) | (5,202,371) | ||
Segment loss after income tax | (8,107,858) | (3,860,317) | (3,304,769) | |
Segment assets | 53,359,216 | 263,731 | 104,267 | |
Segment liabilities | (577,819) | (86,522) | ||
Corporate [Member] | ||||
Schedule of Revenue and Expenses for the Period and Assets and Liabilities [Line Items] | ||||
Revenue from external customers | ||||
Interest revenue | 362,895 | 6,175 | 2,673 | |
Other revenue | 73,069 | |||
Other expenses | (10,166,059) | (7,375,456) | ||
Segment loss after income tax | (10,779,667) | (10,159,884) | (7,299,714) | |
Segment assets | $ 34,349,676 | 37,559,819 | 9,222,528 | |
Segment liabilities | (1,078,404) | (668,527) | ||
Consolidated [Member] | ||||
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) | ||
[1] Of the total revenue from pharmaceuticals in each year, 100% was through Cannvalate Pty Ltd’s distribution network. |
Income Tax (Details) - Schedu_3
Income Tax (Details) - Schedule of Income Tax Benefit on Pre-Tax Accounting Loss from Operations Reconciles - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Income Tax Benefit on Pre-Tax Accounting Loss from Operations Reconciles [Abstract] | |||
Accounting loss before tax | $ (19,979,558) | $ (14,903,909) | $ (11,372,799) |
Income tax benefit at the applicable tax rate of 25% (2021: 26%) | 4,994,890 | 3,725,977 | 2,956,928 |
Non-deductible expenses | (1,259,881) | (564,872) | (1,192,112) |
Non-assessable income | 253,439 | 195,596 | |
Deferred tax assets not recognized | (3,988,448) | (3,356,701) | (1,764,816) |
Income tax benefit | |||
Unrecognized Deferred Tax Asset | |||
Unused tax losses | 24,845,264 | 20,867,835 | |
Net unrecognized tax benefit at 25% (2021: 26%) | $ 7,409,031 | $ 6,211,316 | $ 5,425,637 |
Income Tax (Details) - Schedu_4
Income Tax (Details) - Schedule of Income Tax Benefit on Pre-Tax Accounting Loss from Operations Reconciles (Parentheticals) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Income Tax Benefit on Pre-Tax Accounting Loss from Operations Reconciles [Abstract] | |||
Tax rate | 30% | 25% | 26% |
Tax benefit percentage | 25% | 26% |
Loss Per Share (Details) - Sc_2
Loss Per Share (Details) - Schedule of Loss Per Share - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Loss Per Share [Abstract] | |||
Basic loss per share - cents per share | $ (1.25) | $ (1.16) | |
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 | $ (19,979,558) | $ (14,903,909) | $ (11,372,799) |
- Weighted average number of ordinary shares (number) | 1,191,154,011 | 976,931,338 |
Cash and Cash Equivalents (De_2
Cash and Cash Equivalents (Details) - Schedule of Cash and Cash Equivalents - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Cash and Cash Equivalents [Abstract] | |||
Cash at bank and on hand | $ 33,363,228 | $ 37,500,931 | $ 9,123,617 |
Total | 33,363,228 | 37,500,931 | 9,123,617 |
Reconciliation of loss for the year to net cash flows from operating activities: | |||
Loss after income tax | (19,979,558) | (14,903,909) | (11,372,799) |
Non-cash based expenses: | |||
Share-based payments | 3,191,640 | 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 | 130,946 | (15,484) | |
Other non-cash expenses | (6,428) | (594,394) | 91,354 |
Changes in net assets and liabilities: | |||
(Increase)/Decrease in receivables | 7,240 | (92,320) | 214,903 |
(Increase)/Decrease in inventory | 183,159 | ||
Decrease in other current assets | (951,221) | 53,447 | 172 |
Increase/(Decrease) in trade payables and accrued expenses | 1,561,321 | 1,111,080 | (291,311) |
Increase/(Decrease) in other liabilities | 103,235 | 154,173 | (101,161) |
Cash flows used in operations | $ (15,942,825) | $ (12,807,373) | $ (6,909,780) |
Trade and Other Receivables (_4
Trade and Other Receivables (Current) (Details) - Schedule of Trade and Other Receivables (Current) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Schedule of Trade and Other Receivables (Current) [Abstract] | |||
Other receivables | $ 53,447 | ||
GST recoverable | 294,717 | 115,641 | |
Total trade and other receivables (Current) | $ 287,478 | $ 294,717 | $ 169,088 |
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, 2023 | |
Schedule of Other Assets (Current) [Abstract] | |||
Prepayments | $ 45,911 | $ 29,784 | |
Office rental bond | 24,124 | ||
Prepayment clinical trial insurance | 13,925 | 6,306 | |
Other assets (current) | $ 83,960 | $ 36,090 | $ 1,035,181 |
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, 2023 | |
Schedule of Trade and Other Payables (Current) [Abstract] | |||
Trade payables | $ 1,300,696 | $ 233,117 | $ 2,707,441 |
Accrued expenses | 415,449 | 381,717 | 641,031 |
Employee leave entitlements | 294,388 | 140,215 | |
Total | $ 2,010,533 | $ 755,049 | $ 3,675,090 |
Issued Capital (Details) - Sc_3
Issued Capital (Details) - Schedule of Issued Capital - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Schedule of Issued Capital [Abstract] | ||
Ordinary shares | $ 86,586,794 | $ 45,852,107 |
Issued Capital (Details) - Sc_4
Issued Capital (Details) - Schedule of Ordinary Shares Movements During Years - Ordinary shares [member] - USD ($) | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | |||
Issued Capital (Details) - Schedule of Ordinary Shares Movements During Years [Line Items] | ||||
At start of year | $ 86,586,794 | $ 45,852,107 | ||
Number of shares, At start of year | 1,292,334,028 | 1,068,411,224 | ||
Issues of new shares – placements | [1] | $ 13,000,000 | $ 400,000 | |
Number of shares, Issues of new shares – placements | 5,000,000 | |||
Issues of new shares – share based payments1 | [2] | |||
Number of shares, Issues of new shares – share based payments1 | [2] | 10,000,000 | ||
Exercise of options | $ 2,027 | $ 40,274,243 | ||
Number of shares, Exercise of options | 2,027 | 207,650,638 | ||
Shares in lieu of advisor fees | [3] | $ 2,945,288 | $ 450,000 | |
Number of shares, Shares in lieu of advisor fees | [3] | 13,090,170 | 1,272,166 | |
Share issue costs | [4] | $ (780,000) | $ (389,555) | |
Number of shares, Share issue costs | [4] | |||
At end of year | $ 86,586,794 | |||
Number of shares, At end of year | 1,587,010,366 | 1,292,334,028 | ||
[1] On 9 December 2022, the Group raised $13 million from a placement of 63,414,635 shares with a small consortium of US and international institutional investors with significant healthcare experience in the US, Europe and Asia. 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. On 4 August 2022, the Company issued 13,090,170 IHL ordinary shares to Ryba LLC as lead M&A Advisors on the APIRx acquisition. On 9 December 2022, the Group incurred $780k of share issue cost from Bell Potter relating to the share placement completed during the period. |
Reserves (Details) - Schedule_2
Reserves (Details) - Schedule of Equity Based Premium Reserve - USD ($) | 12 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | ||||
Schedule of Equity Based Premium Reserve [Abstract] | ||||||
Balance at beginning | $ 8,077,191 | $ 6,612,641 | $ 1,490,588 | |||
Options issued to advisors | [1] | 4,522,010 | ||||
Equity instruments issued to management and directors | 3,191,640 | [2] | 1,464,550 | [2] | 600,043 | |
Balance at ending | $ 12,061,087 | $ 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 $0.04 risk-free rate of 0.24% and volatility of 92%. |
Share Based Payments (Details_3
Share Based Payments (Details) - Schedule of Share Options Were Issued to Employees and Consultants as Share Based Payments - Options [Member] - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Options granted to employees | |||
Total options | 14,000,000 | 10,000,000 | 70,164,690 |
Total options | $ 771,500 | $ 2,371,867 | $ 4,521,507 |
Unlisted Option [Member] | Options granted to Directors [Member] | |||
Options granted to Directors | |||
Number Total Options granted to Directors | 1,399,999 | ||
Grant Date Total Options granted to Directors | Jun. 09, 2022 | ||
Expiry Date Total Options granted to Directors | Jul. 01, 2025 | ||
Exercise Price Total Options granted to Directors | $ 0.26 | ||
Total fair value Total Options granted to Directors | $ 298,200 | ||
Unlisted Option [Member] | Option Granted To Third Parties [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 | ||
Unlisted options One [Member] | Options granted to Directors [Member] | |||
Options granted to Directors | |||
Number Total Options granted to Directors | 2,500,000 | 1,399,999 | |
Grant Date Total Options granted to Directors | Nov. 29, 2022 | Jun. 09, 2022 | |
Expiry Date Total Options granted to Directors | May 31, 2024 | Jul. 01, 2026 | |
Exercise Price Total Options granted to Directors | $ 1 | $ 0.31 | |
Total fair value Total Options granted to Directors | $ 57,500 | $ 309,400 | |
Unlisted options One [Member] | Options granted to employees [Member] | |||
Options granted to employees | |||
Number Total Options granted to employees | 533,333 | ||
Grant Date Total Options granted to employees | Apr. 29, 2022 | ||
Expiry Date Total Options granted to employees | Jul. 01, 2026 | ||
Exercise Price Total Options granted to employees | $ 0.31 | ||
Total fair value Total Options granted to employees | $ 143,467 | ||
Unlisted options One [Member] | Option Granted To Third Parties [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 | $ 0.25 | ||
Total fair value Total options granted to third parties | $ 527,766 | ||
Unlisted options Two [Member] | Options granted to Directors [Member] | |||
Options granted to Directors | |||
Number Total Options granted to Directors | 2,500,000 | 1,400,002 | |
Grant Date Total Options granted to Directors | Nov. 29, 2022 | Jun. 09, 2022 | |
Expiry Date Total Options granted to Directors | May 31, 2024 | Jul. 01, 2027 | |
Exercise Price Total Options granted to Directors | $ 1.5 | $ 0.35 | |
Total fair value Total Options granted to Directors | $ 30,000 | $ 324,800 | |
Unlisted options Two [Member] | Options granted to employees [Member] | |||
Options granted to employees | |||
Number Total Options granted to employees | 533,334 | ||
Grant Date Total Options granted to employees | Apr. 29, 2022 | ||
Expiry Date Total Options granted to employees | Jul. 01, 2027 | ||
Exercise Price Total Options granted to employees | $ 0.35 | ||
Total fair value Total Options granted to employees | $ 148,800 | ||
Unlisted options Two [Member] | Option Granted To Third Parties [Member] | |||
Options granted to third parties | |||
Number Total options granted to third parties | 10,000,000 | ||
Grant Date Total options granted to third parties | Feb. 25, 2021 | ||
Expiry Date Total options granted to third parties | Nov. 20, 2023 | ||
Exercise Price Total options granted to third parties | $ 0.2 | ||
Total fair value Total options granted to third parties | $ 1,352,588 | ||
Unlisted options Three [Member] | Options granted to Directors [Member] | |||
Options granted to Directors | |||
Number Total Options granted to Directors | 1,399,999 | ||
Grant Date Total Options granted to Directors | Jun. 09, 2022 | ||
Expiry Date Total Options granted to Directors | Jul. 01, 2026 | ||
Exercise Price Total Options granted to Directors | $ 0.26 | ||
Total fair value Total Options granted to Directors | $ 326,200 | ||
Unlisted options Three [Member] | Option Granted To Third Parties [Member] | |||
Options granted to third parties | |||
Number Total options granted to third parties | 10,000,000 | ||
Grant Date Total options granted to third parties | Feb. 25, 2021 | ||
Expiry Date Total options granted to third parties | Nov. 20, 2023 | ||
Exercise Price Total options granted to third parties | $ 0.25 | ||
Total fair value Total options granted to third parties | $ 1,253,140 | ||
Unlisted options Four [Member] | Options granted to Directors [Member] | |||
Options granted to Directors | |||
Number Total Options granted to Directors | 1,399,999 | ||
Grant Date Total Options granted to Directors | Jun. 09, 2022 | ||
Expiry Date Total Options granted to Directors | Jul. 01, 2027 | ||
Exercise Price Total Options granted to Directors | $ 0.31 | ||
Total fair value Total Options granted to Directors | $ 334,600 | ||
Unlisted options Four [Member] | Option Granted To Third Parties [Member] | |||
Options granted to third parties | |||
Number Total options granted to third parties | 30,164,690 | ||
Grant Date Total options granted to third parties | Oct. 02, 2020 | ||
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 | $ 740,665 | ||
Unlisted options Five [Member] | Options granted to Directors [Member] | |||
Options granted to Directors | |||
Number Total Options granted to Directors | 1,400,002 | ||
Grant Date Total Options granted to Directors | Jun. 09, 2022 | ||
Expiry Date Total Options granted to Directors | Jul. 01, 2028 | ||
Exercise Price Total Options granted to Directors | $ 0.35 | ||
Total fair value Total Options granted to Directors | $ 347,200 | ||
Unlisted options [Member] | Options granted to Directors [Member] | |||
Options granted to Directors | |||
Number Total Options granted to Directors | 1,399,999 | ||
Grant Date Total Options granted to Directors | Jun. 09, 2022 | ||
Expiry Date Total Options granted to Directors | Jul. 01, 2025 | ||
Exercise Price Total Options granted to Directors | $ 0.26 | ||
Total fair value Total Options granted to Directors | $ 298,200 | ||
Unlisted options [Member] | Options granted to employees [Member] | |||
Options granted to employees | |||
Number Total Options granted to employees | 533,333 | ||
Grant Date Total Options granted to employees | Apr. 29, 2022 | ||
Expiry Date Total Options granted to employees | Jul. 01, 2025 | ||
Exercise Price Total Options granted to employees | $ 0.26 | ||
Total fair value Total Options granted to employees | $ 139,200 |
Share Based Payments (Details_4
Share Based Payments (Details) - Schedule of Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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 Share Options Granted is Estimated as at the Grant Date Using a 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_5
Share Based Payments (Details) - Schedule of Number of Performance Shares and Performance Rights | Jun. 30, 2022 | Jun. 30, 2021 |
Schedule Of Number Of Performance Shares And Performance Rights Abstract | ||
$0.$0.08 Options | 30-Sep-21 | 30-Sep-21 |
Balance at start of year | 41,553,593 | |
Granted by the Company | ||
Converted or Expired | (41,553,593) | |
Balance at end of year |
Remuneration of Auditors (Det_2
Remuneration of Auditors (Details) - Schedule of Remuneration of Auditors - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
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 | |
Audit services – Withum Smith & Brown (US auditor) | 357,208 | 287,975 | |
Other services – Withum Smith & Brown (US auditor) | |||
Total | $ 97,750 | $ 465,346 | $ 325,760 |
Financial Instruments (Detail_2
Financial Instruments (Details) - Schedule of Contractual Liabilities - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Financial Instruments (Details) - Schedule of Contractual Liabilities [Line Items] | |||
Payables & accruals | $ 3,675,090 | $ 1,828,527 | $ 614,834 |
Contractual liabilities | 3,675,090 | 1,828,527 | 614,834 |
Less than 1 month [Member] | |||
Financial Instruments (Details) - Schedule of Contractual Liabilities [Line Items] | |||
Payables & accruals | 3,298,131 | 1,828,527 | 614,834 |
Contractual liabilities | 3,298,131 | 1,828,527 | 614,834 |
1 to 3 months [Member] | |||
Financial Instruments (Details) - Schedule of Contractual Liabilities [Line Items] | |||
Payables & accruals | 236,514 | ||
Contractual liabilities | 236,514 | ||
3 months to 1 year [Member] | |||
Financial Instruments (Details) - Schedule of Contractual Liabilities [Line Items] | |||
Payables & accruals | 140,445 | ||
Contractual liabilities | 140,445 | ||
1 to 5 years [Member] | |||
Financial Instruments (Details) - Schedule of Contractual Liabilities [Line Items] | |||
Payables & accruals | |||
Contractual liabilities |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Key Management Personnel Compensation [Abstract] | |||
Short-term employee benefits | $ 2,296,996 | $ 1,333,992 | $ 761,231 |
Post-employment benefits | 66,757 | 47,547 | 38,877 |
Share based payments | 2,715,156 | 1,028,634 | 672,699 |
Total KMP compensation | $ 5,078,909 | $ 2,410,173 | $ 1,472,807 |
Parent Entity Disclosures (De_3
Parent Entity Disclosures (Details) - Schedule of Financial Statements for the Parent Entity - Separate [member] - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Parent Entity Disclosures (Details) - Schedule of Financial Statements for the Parent Entity [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 |