Incannex Healthcare Limited Sponsored ADR (IXHL) AI Stock Analysis

• Market Cap: $19.91M
• Dividend Yield: N/A
• Average Volume (3M): 116.76M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.76
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 9
• Sector: Healthcare
• Sector Strength: 49
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.20
• Shares Outstanding: 93,695,370
• 10 Day Avg. Volume: 56,309,972
• 30 Day Avg. Volume: 116,759,265
• PEG Ratio: 11.40
• Price to Book (P/B): -5.68K
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.09K
• Enterprise Value/Market Cap: 83.60
• Enterprise Value/Revenue: 46.23K
• Enterprise Value/Gross Profit: 69.35K
• Enterprise Value/Ebitda: -41.38
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: ―

The overall stock score for IXHL stands at 39, driven by the company's initial revenue growth but overshadowed by significant profitability and cash flow challenges. Technical indicators suggest a bearish trend, with potential for further downside. Valuation factors also weigh negatively due to ongoing losses and lack of dividends. The company's strong equity position is a minor positive, but overall financial health remains a concern.

Incannex Healthcare Limited Sponsored ADR Business Overview & Revenue Model

Company Description

Incannex Healthcare Limited engages in the research, development, and sale of medicinal cannabinoid products in Australia. It offers pharmaceutical grade cannabinoid products under the Incannex brand name. The company's products include IHL-42X, which is in Phase II clinical trials for obstructive sleep apnea; IHL-216A for traumatic brain injury; and IHL-675A, a combination of hydroxychloroquine and cannabidiol for the prevention and treatment of inflammatory lung conditions, such as acute respiratory distress syndrome, chronic obstructive pulmonary disease, asthma, and bronchitis, as well as rheumatoid arthritis and inflammatory bowel diseases. It has partnership with The Alfred Hospital and Novotech on IHL-42X clinical program for obstructive sleep apnea; and Monash Trauma Group at the Department of Neuroscience, Monash University to conduct a study on the protective effect of IHL-216A in sports concussion. The company was formerly known as Impression Healthcare Limited and changed its name to Incannex Healthcare Limited in June 2020. Incannex Healthcare Limited was incorporated in 2001 and is based in Sydney, Australia.

How the Company Makes Money

Incannex Healthcare generates revenue through the development and commercialization of its proprietary pharmaceutical products. The company's primary revenue streams include sales of cannabinoid-based medications and psychedelic therapies, which are developed to treat specific medical conditions. In addition to direct sales, Incannex may enter into licensing agreements, strategic partnerships, or joint ventures with other pharmaceutical companies, enabling them to leverage external distribution networks and enhance market reach. Revenue is also derived from potential milestone payments and royalties associated with these partnerships, as well as from government grants or funding related to clinical research. Key factors contributing to the company's earnings include successful clinical trial outcomes, regulatory approvals, and the expansion of its product portfolio.

Incannex Healthcare Limited Sponsored ADR Financial Statement Overview

Summary

Incannex Healthcare Limited is experiencing initial revenue growth, but the company faces significant challenges with profitability and cash flow. Negative margins and declining cash reserves highlight financial difficulties, although a strong equity position offers some stability.

Income Statement

The company demonstrates a substantial increase in revenue from zero in 2023 to $12,000 in 2024, indicating some initial growth. However, profitability remains a concern with consistent negative net income, and EBIT and EBITDA margins are negative, highlighting operating challenges. Revenue growth is a positive sign, but the company struggles with profitability, typical for early-stage pharmaceutical companies.

Balance Sheet

The balance sheet reflects a healthy equity position with a debt-to-equity ratio of 0.03, showing limited leverage risk. However, the reduction in stockholders' equity from the previous year signals potential capital erosion. The equity ratio is strong, but the company's liabilities have increased, which could pose future risks if not managed effectively.

Cash Flow

The cash flow statement shows a concerning trend with negative operating cash flows and declining free cash flow over time. The operating cash flow to net income ratio is negative, indicating inefficient cash flow generation from operations. The lack of positive free cash flow growth highlights ongoing liquidity challenges.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	24.00K	12.00K	0.00	540.17K	1.42M	417.45K
Gross Profit	24.00K	12.00K	0.00	535.79K	739.07K	106.65K
EBITDA	-11.99M	-18.50M	-13.55M	-11.38M	-8.57M	-2.58M
Net Income	-12.36M	-18.46M	-48.81M	-10.29M	-8.53M	-3.24M
Balance Sheet
Total Assets	11.11M	17.05M	23.78M	26.15M	7.00M	2.92M
Cash, Cash Equivalents and Short-Term Investments	2.10M	5.86M	22.12M	25.80M	6.84M	2.49M
Total Debt	4.10M	373.00K	521.00K	0.00	0.00	0.00
Total Liabilities	10.14M	5.83M	2.96M	1.39M	566.17K	736.35K
Stockholders Equity	965.00K	11.22M	20.82M	24.76M	6.44M	2.17M
Cash Flow
Free Cash Flow	-7.89M	-16.12M	-11.06M	-8.84M	-5.18M	-2.70M
Operating Cash Flow	-7.87M	-15.85M	-10.75M	-8.84M	-5.18M	-2.70M
Investing Cash Flow	-11.00K	-277.00K	-316.00K	0.00	22.00K	―
Financing Cash Flow	4.05M	0.00	8.18M	28.33M	9.30M	5.11M

Incannex Healthcare Limited Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IXHL, the sentiment is Negative. The current price of 0.21 is above the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.27, and below the 200-day MA of 1.32, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.36 is Neutral, neither overbought nor oversold. The STOCH value of 31.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IXHL.

Incannex Healthcare Limited Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRIS	52 Neutral	$22.70M	―	-2951.24%	―	14.17%	28.26%
Sector *	51 Neutral	$7.39B	0.31	-61.07%	2.34%	17.46%	1.71%
MODV	46 Neutral	$49.38M	―	-951.52%	―	-0.70%	-2.38%
NNVC	42 Neutral	$22.50M	―	-99.84%	―	―	10.23%
IXHL	39 Underperform	$19.91M	―	-201.88%	―	―	―
UBX	31 Underperform	$13.57M	―	-231.27%	―	―	35.08%
CDIO		$5.70M	―	-81.24%	―	―	―

Incannex Healthcare Limited Sponsored ADR Corporate Events

Incannex Healthcare Repays Convertible Debenture in Full

On March 13, 2025, Incannex Healthcare Inc. repaid its outstanding 10% Original Issue Discount Senior Secured Convertible Debenture in full, which was initially issued under a Securities Purchase Agreement with Arena Special Opportunities (Offshore) Master II LP on September 6, 2024. This repayment, amounting to $3,851,111.00, led to the termination of the Debenture Purchase Agreement and related Security Documents, except for indemnification and registration rights. The company’s actions reflect a strategic financial decision that impacts its financial obligations and contractual relationships, with certain warrants and registration rights agreements remaining in effect.