General discussion, page-15896

Piecing together some things here.
Thanks to the rough estimates provided by others here of how much profit IHL could take home per clinic per year (circa 2.4M), at the company's current cash burn rate, it could start turning a profit with 8 clinics fully operational. That's already a good horizon as the Australian market will certainly be able to support that many of our clinics, with room for other players too.

This calculation does not take into account the 43.5% R&D rebate which I believe covers a sizable portion of Incannex's expenditure each year. It will vary from year to year depending on where trials are taking place, but the company is naturally making sure it maximises its use of this incredible Australian support for local industry and as long as it is in place, I have little doubt Incannex will always prioritize local operations and trial sites, only using international locations insofar as it augments their overall strategy.

With the R&D rebate taken into account, I would not be surprised if profits from 6 clinics turn out to be sufficient to generate positive cash flow for the company, while paying for trial operations equivalent to the ones currently under way.

How quickly could the company ramp up 6 clinics? My sense is that they could probably open 3 or 4 in 2024. A new clinic per quarter could be achievable. But to allow a little longer per clinic as well as a little more time for the model clinic to yield its lessons, let's say 3 new clinics in 2024. With the model clinic included, that would see 4 clinics operational by Xmas 2024? 6 by mid 2025? Remember we have a cash runway to 2025 already, with 25c options potentially being bought during that period, further extending the runway. We might see one more raise before profitability, but then again, we might not need one. A lot can happen with trial partnerships, licensing or acquisition between now and mid 2025. Remember by then, pivotal trial results for IHL-42x will be in, and our new drug application underway with the FDA, if results continue to reflect the stellar success of the phase 2 proof of concept trial.

One thing is certain: the news flow generated by each new clinic opening, and patient numbers growing, will show the company on a rapid path to profitability no matter what comes out of the uniquely exciting new drug candidates the company has so far progressed flawlessly.