Incannex Healthcare Inc. Leases Disclosure
Note 7 - Leases
As of June 30, 2025, the Company has three lease agreements for its corporate head office in Sydney and two sites in Melbourne (an office and the Clarion Clinic). The leases have original terms of approximately four, five and three years, respectively, require monthly payments that may be subject to annual increases, and include certain renewal options. The Company did not include the renewal periods in measuring the related right-of-use assets and lease liabilities because it was not reasonably certain that the options would be exercised.
The following table summarizes the weighted-average remaining lease term and discount rates for the Company’s operating leases:
| June 30, 2025 | June 30, 2024 | |||||||
| Lease term (years) | 1.32 | 2.32 | ||||||
| Discount rate | 9.18 | % | 9.18 | % | ||||
The following table summarizes the lease costs pertaining to the Company’s operating leases:
| June 30, 2025 | June 30, 2024 | |||||||
| Operating lease cost | 203 | 172 | ||||||
Cash paid for amounts included in the measurement of operating lease liabilities during the fiscal years ended June 30, 2025 and 2024 was $203,000 and $172,000, respectively, and was included within net cash used in operating activities in the cash flows.
The following table summarizes the future minimum lease payments due under operating leases as of June 30, 2025, (in thousands):
| Operating leases | Amount $ (in thousands) | |||
| June 30, 2026 | 199 | |||
| June 30, 2027 | 48 | |||
| June 30, 2028 | 32 | |||
| Total minimum lease payments | 279 | |||
| Less amount representing interest | 21 | |||
| Total operating lease liabilities | 258 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 29, 2025 | Showing above |
| 2024 | Sep 30, 2024 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.