UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2023 OR For the transition period from to Commission file number: 001-39685 INMED PHARMACEUTICALS INC. (Exact name of registrant as specified in its charter) | British Columbia, Canada | 98-1428279 | | --- | --- | | (State or other jurisdiction of | (IRS employer | | incorporation or organization ...

Financial Performance - For the nine months ended March 31, 2023, InMed Pharmaceuticals reported a net loss of $7.6 million, compared to a net loss of $10.7 million for the same period in 2022, indicating a reduction in losses of approximately 29%[100]. - InMed Pharmaceuticals reported a net loss of $1.6 million for the three months ended March 31, 2023, a decrease of 45% compared to a net loss of $2.9 million in the same period of 2022[125]. - For the nine months ended March 31, 2023, net cash used in operating activities was $6.6 million, a decrease from $11.5 million for the same period in 2022, reflecting a 42% improvement[149][150][151]. - InMed Pharmaceuticals expects to incur substantial operating losses and negative cash flows for the foreseeable future due to ongoing research and development activities[155]. - The accumulated deficit stood at $101.1 million, reflecting an increase of approximately $72.2 million since 2014 when the company began focusing on cannabinoid-derived pharmaceuticals[100]. Research and Development - Research and development expenses decreased in fiscal 2023 compared to fiscal 2022, primarily due to high start-up costs associated with the multicenter Phase II clinical trial in the INM-755 program during fiscal 2022[116]. - The company expects significant increases in research and development expenses in future periods as it advances drug candidates and manufacturing technologies through clinical development[116]. - Research and development expenses in the InMed segment decreased by $0.7 million, or 49%, for the three months ended March 31, 2023, primarily due to lower personnel expenses and decreased costs related to the INM-755 program[126]. - Research and development expenses in the BayMedica segment decreased by $0.2 million, or 21%, for the nine months ended March 31, 2023, primarily due to lower personnel expenses[144]. Sales and Revenue - Sales in the BayMedica segment increased by $1.0 million, or 234%, for the three months ended March 31, 2023, compared to the same period in 2022, driven by expanded marketing efforts and increased demand[129]. - For the nine months ended March 31, 2023, sales in the BayMedica segment increased by $1.2 million, or 217%, compared to the same period in 2022[140]. - The cost of goods sold in the BayMedica segment increased by $1.1 million, or 404%, for the nine months ended March 31, 2023, reflecting the increase in sales[141]. Operating Expenses - Total operating expenses for the InMed segment decreased by 43% to $1.7 million for the three months ended March 31, 2023, down from $3.0 million in the same period of 2022[125]. - General and administrative expenses in the InMed segment decreased by $0.6 million, or 38%, for the three months ended March 31, 2023, attributed to lower investor relation expenses and stock-based compensation[127]. - General and administrative expenses in the BayMedica segment increased by $0.7 million, or 107%, for the nine months ended March 31, 2023, due to the inclusion of BayMedica's operating results post-acquisition[146]. Funding and Financial Position - InMed Pharmaceuticals has funded its operations primarily through the issuance of common shares since the acquisition of Biogen Sciences Inc. in 2014[99]. - The company plans to finance its operations through product sales, equity sales, debt financing, and collaborations, but may face challenges in raising additional funds[103]. - Cash provided by financing activities for the nine months ended March 31, 2023, was $10.7 million, slightly up from $10.0 million in the same period in 2022[153][154]. - The company anticipates that its current cash and cash equivalents will be sufficient to fund operations into the first quarter of calendar 2024, depending on revenue realization from BayMedica[158][172]. - InMed Pharmaceuticals has concluded that there is substantial doubt about its ability to continue as a going concern within one year after the issuance of the financial statements[159][173]. - The company plans to seek additional funding through equity or debt financings and collaborations, but there are uncertainties regarding the ability to obtain financing on acceptable terms[160][174]. Legal and Compliance - A licensor has alleged a breach of an agreement during the three months ended March 31, 2023, which may impact the company's operations[105]. - The company is implementing a remediation plan to address a previously reported material weakness in internal control over financial reporting, expected to be completed before the end of fiscal year 2023[179]. - The financial statements are believed to fairly present the company's financial position, results of operations, and cash flows in conformity with U.S. GAAP despite the material weakness[179]. - The company is not currently involved in any active legal proceedings that are considered material[181]. - As a smaller reporting company, the company is electing scaled disclosure reporting obligations and is not required to provide certain risk factor information[182].

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 or (Exact name of registrant as specified in its charter) British Columbia, Canada 98-1428279 (State or other jurisdiction of incorporation or organization) Suite 310 - 815 W. Hastings Street, Vancouver, B.C. (Address of Principal Executive Offices) (Zip Code) (604) 669-7207 ☐ TRANSITION RE ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-39685 INMED PHARMACEUTICALS INC. (Exact name of registrant as specified in its charter) British Columbia, Canada ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-39685 INMED PHARMACEUTICALS INC. (Exact name of registrant as specified in its charter) British Columbia, Canada 98-1428279 (State or ot ...

InMed Pharmaceuticals Inc. (NASDAQ:INM) Q4 2022 Results Conference Call September 23, 2022 1:00 PM ET Company Participants Colin Clancy - VP, IR Eric Adams - President and CEO Michael Woudenberg - COO Brenda Edwards - Interim CFO Dr. Eric Hsu - SVP, Preclinical Research and Development Conference Call Participants Scott Henry - ROTH Capital Partners Raghuram Selvaraju - H.C. Wainwright Operator Good day. And thank you for standing by. Welcome to InMed Pharmaceuticals Fourth Quarter Fiscal 2022 Financial Res ...

PART I – FINANCIAL INFORMATION [ITEM 1. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20CONDENSED%20CONSOLIDATED%20INTERIM%20FINANCIAL%20STATEMENTS) InMed Pharmaceuticals Inc. presents unaudited interim financial statements, detailing significant net losses and going concern doubt - The company has incurred recurring losses and negative cash flows from operations since its inception, with net losses of **$10.7 million** and **$6.9 million** for the nine months ended March 31, 2022 and 2021, respectively, and an accumulated deficit of **$85.6 million** as of March 31, 2022[20](index=20&type=chunk)[176](index=176&type=chunk)[192](index=192&type=chunk) - Management concluded there is substantial doubt about the company's ability to continue as a going concern within one year, as current cash is expected to fund operations only into the second quarter of fiscal 2023[21](index=21&type=chunk)[180](index=180&type=chunk)[195](index=195&type=chunk) [Condensed Consolidated Interim Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Balance%20Sheets) Balance sheets show increased assets and liabilities from June 2021 to March 2022, driven by the BayMedica acquisition Condensed Consolidated Interim Balance Sheet Highlights | Metric | March 31, 2022 ($) | June 30, 2021 ($) | |:---|:---|:---|\n| Total Assets | 15,485,797 | 9,781,216 | | Total Liabilities | 4,599,064 | 2,404,649 | | Total Shareholders' Equity | 10,886,733 | 7,376,567 | | Cash and cash equivalents | 5,898,313 | 7,363,126 | | Inventories | 1,420,382 | - | | In-process research and development | 1,249,000 | - | | Goodwill | 2,023,039 | - | [Condensed Consolidated Interim Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Statements of operations reflect the BayMedica acquisition, introducing sales and cost of sales, with net loss significantly increasing due to higher operating expenses Condensed Consolidated Interim Statements of Operations and Comprehensive Loss Highlights | Metric | Three Months Ended March 31, 2022 ($) | Three Months Ended March 31, 2021 ($) | Nine Months Ended March 31, 2022 ($) | Nine Months Ended March 31, 2021 ($) | |:---|:---|:---|:---|:---|\n| Sales | 309,585 | - | 574,677 | - | | Gross profit | 182,277 | - | 293,832 | - | | Research and development and patents | 1,753,545 | 1,772,593 | 5,781,867 | 3,621,697 | | General and administrative | 1,915,017 | 1,333,725 | 5,124,670 | 2,918,067 | | Total operating expenses | 3,721,902 | 3,133,739 | 11,038,206 | 6,631,982 | | Net loss for the period | (3,475,665) | (3,101,475) | (10,730,094) | (6,944,336) | | Basic and diluted loss per share | (0.25) | (0.41) | (0.81) | (1.11) | [Condensed Consolidated Interim Statements of Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity increased from June 2021 to March 2022, driven by private placement proceeds and shares issued for the BayMedica acquisition, offset by net losses Shareholders' Equity Changes (Nine Months Ended March 31, 2022) | Item | Amount ($) | |:---|:---|\n| Balance June 30, 2021 | 7,376,567 | | Private placement (gross proceeds) | 11,999,686 | | Share issuance costs | (2,034,167) | | Acquisition of BayMedica (common shares) | 3,013,500 | | Loss for the period | (10,730,094) | | Share-based compensation | 521,006 | | Balance March 31, 2022 | 10,886,733 | [Condensed Consolidated Interim Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Cash used in operating activities significantly increased, while investing activities provided cash due to the BayMedica acquisition, and financing activities provided less cash year-over-year Condensed Consolidated Interim Statements of Cash Flows Highlights | Activity | Nine Months Ended March 31, 2022 ($) | Nine Months Ended March 31, 2021 ($) | |:---|:---|:---|\n| Net cash used in operating activities | (11,536,511) | (7,784,554) | | Net cash provided by investing activities | 52,458 | - | | Net cash provided by financing activities | 10,019,240 | 10,937,898 | | Increase (decrease) in cash during the period | (1,464,813) | 3,648,304 | | Cash and cash equivalents end of the period | 5,898,313 | 9,454,113 | [Notes to the Condensed Consolidated Interim Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) These notes detail corporate structure, accounting policies, financial performance, and position, including going concern uncertainty and BayMedica acquisition impact [1. Corporate Information and Continuing Operations](index=10&type=section&id=1.%20CORPORATE%20INFORMATION%20AND%20CONTINUING%20OPERATIONS) InMed Pharmaceuticals Inc. is a clinical-stage pharmaceutical company developing cannabinoid-based products, facing substantial doubt about its going concern ability - InMed Pharmaceuticals Inc. is a clinical stage pharmaceutical company developing prescription-based products (rare cannabinoids and novel cannabinoid analogs) and proprietary manufacturing technologies for the health and wellness industry[17](index=17&type=chunk) - The company has incurred recurring losses and negative cash flows from operations since inception, with an accumulated deficit of **$85.6 million** as of March 31, 2022[20](index=20&type=chunk) - Management concluded there is substantial doubt about the company's ability to continue as a going concern within one year, as current cash is expected to fund operations only into the second quarter of fiscal 2023[21](index=21&type=chunk) [2. Significant and New Accounting Policies](index=11&type=section&id=2.%20SIGNIFICANT%20AND%20NEW%20ACCOUNTING%20POLICIES) Financial statements adhere to US GAAP, with key policies covering business combinations, inventory valuation, and revenue recognition for bulk rare cannabinoid sales - Unaudited condensed consolidated interim financial statements are prepared in accordance with US GAAP and SEC rules for interim financial information[25](index=25&type=chunk) - Business combinations are accounted for using the acquisition method, allocating fair value of consideration to acquired assets and assumed liabilities, with any excess recorded as goodwill[30](index=30&type=chunk) - Revenue from manufacturing and distribution sales of bulk rare cannabinoids is recognized when control is transferred to the customer, typically upon shipment and transfer of title/risk of loss[35](index=35&type=chunk) [3. Customer Concentration](index=14&type=section&id=3.%20CUSTOMER%20CONCENTRATION) The company experienced significant customer concentration, with a few customers accounting for a large portion of sales and outstanding accounts receivable - Two customers generated **73%** of net sales for the three months ended March 31, 2022[39](index=39&type=chunk) - Three customers generated **65%** of net sales for the nine months ended March 31, 2022[39](index=39&type=chunk) - These concentrated customers represented **43%** of the company's outstanding accounts receivable as of March 31, 2022[39](index=39&type=chunk) [4. Inventories](index=14&type=section&id=4.%20INVENTORIES) Inventories, primarily work-in-process and finished goods, totaled **$1,420,382** as of March 31, 2022, with no prior year balance due to the BayMedica acquisition Inventories Breakdown | Category | March 31, 2022 ($) | June 30, 2021 ($) | |:---|:---|:---|\n| Work in process | 1,138,566 | - | | Finished goods | 281,816 | - | | Total Inventories | 1,420,382 | - | - Inventory expensed to cost of goods sold was **$127,308** for the three months and **$280,845** for the nine months ended March 31, 2022[40](index=40&type=chunk) [5. Property and Equipment, Net](index=14&type=section&id=5.%20PROPERTY%20AND%20EQUIPMENT,%20NET) Net property and equipment significantly increased to **$1,002,846** as of March 31, 2022, largely due to the BayMedica acquisition Property and Equipment, Net | Category | March 31, 2022 ($) | June 30, 2021 ($) | |:---|:---|:---|\n| Right of Use Asset (leases) | 1,167,436 | 439,321 | | Equipment | 212,877 | 66,888 | | Leasehold Improvements | 40,409 | 42,986 | | Property and equipment, net | 1,002,846 | 326,595 | - Depreciation expense for property, equipment, and leasehold improvements was **$7,908** (three months) and **$18,371** (nine months) for 2022, and **$89,450** (three months) and **$199,058** (nine months) for Right-of-Use Assets[41](index=41&type=chunk) [6. Intangible Assets, IPR&D and Goodwill](index=15&type=section&id=6.%20INTANGIBLE%20ASSETS,%20IPR%26D%20AND%20GOODWILL) Intangible assets, IPR&D, and goodwill significantly increased due to the BayMedica acquisition, with IPR&D and goodwill recognized for the first time Intangible Assets, IPR&D, and Goodwill | Category | March 31, 2022 ($) | June 30, 2021 ($) | |:---|:---|:---|\n| Intellectual property | 1,736,420 | 1,736,420 | | Patents | 1,191,000 | - | | Trademark | 216,000 | - | | Intangible assets, net | 2,355,401 | 1,061,697 | | In-process research and development | 1,249,000 | - | | Goodwill | 2,023,039 | - | - Acquired IPR&D (**$1,249,000**) and Goodwill (**$2,023,039**) arose from the BayMedica acquisition and are classified as indefinite-lived assets, not subject to amortization[45](index=45&type=chunk)[46](index=46&type=chunk) - Amortization expense on intangible assets for the three and nine months ended March 31, 2022, was **$45,430** and **$113,296**, respectively[45](index=45&type=chunk) [7. Acquisition of BayMedica](index=16&type=section&id=7.%20ACQUISITION) InMed acquired BayMedica on October 13, 2021, for **$3,813,957**, recognizing significant intangible assets and goodwill, with BayMedica contributing sales and operating losses since acquisition - InMed acquired **100%** of BayMedica on October 13, 2021, for a total consideration of **$3,813,957**[47](index=47&type=chunk)[48](index=48&type=chunk) - Consideration included **2,050,000** common shares (**$3,013,500** fair value) and **$1,000,000** cash (subject to post-closing adjustments)[47](index=47&type=chunk)[48](index=48&type=chunk) Preliminary Fair Value of Assets Acquired and Liabilities Assumed (BayMedica Acquisition) | Category | Amount ($) | |:---|:---|\n| Cash and cash equivalents | 91,566 | | Inventories | 487,122 | | IPR&D | 1,249,000 | | Patents | 1,191,000 | | Trademark | 216,000 | | Goodwill | 2,023,039 | | Total assets acquired | 5,559,412 | | Total liabilities assumed | 1,745,455 | | Estimated fair value of net assets acquired | 3,813,957 | - From acquisition date to March 31, 2022, BayMedica contributed **$0.6 million** in sales and **$1.8 million** in operating losses[57](index=57&type=chunk) [8. Accounts Payable and Accrued Liabilities](index=18&type=section&id=8.%20ACCOUNTS%20PAYABLE%20AND%20ACCRUED%20LIABILITIES) Accounts payable and accrued liabilities increased to **$2,866,927** as of March 31, 2022, primarily due to higher trade payables and accrued research and development expenses Accounts Payable and Accrued Liabilities | Category | March 31, 2022 ($) | June 30, 2021 ($) | |:---|:---|:---|\n| Trade payables | 1,676,179 | 775,129 | | Accrued research and development expenses | 364,207 | 309,901 | | Employee compensation, benefits and related accruals | 711,421 | 880,207 | | Accrued general and administrative expenses | 115,120 | 169,641 | | Total | 2,866,927 | 2,134,878 | [9. Share Capital and Reserves](index=19&type=section&id=9.%20SHARE%20CAPITAL%20AND%20RESERVES) During the nine months ended March 31, 2022, the company completed a private placement raising **$12.0 million** and issued common shares for the BayMedica acquisition, impacting outstanding shares - A private placement on July 2, 2021, generated **$11,999,686** in gross proceeds from the issuance of **890,000** common shares and **3,146,327** pre-funded warrants[62](index=62&type=chunk) - **2,050,000** common shares were issued as part of the BayMedica acquisition[63](index=63&type=chunk) Share Purchase Warrants Activity (July 1, 2021 to March 31, 2022) | Activity | Number | Weighted Average Share Price ($) | |:---|:---|:---|\n| Balance as at June 30, 2021 | 2,473,000 | 3.80 | | Granted | 4,036,327 | 2.848 | | Exercised | (369,600) | 0.45 | | Balance as at March 31, 2022 | 6,139,727 | 3.38 | [10. Share-Based Payments](index=21&type=section&id=10.%20SHARE-BASED%20PAYMENTS) The company's stock option plan had **420,165** options available for future allocation, with total share-based compensation expense of **$521,006** for the nine months ended March 31, 2022 - **420,165** options were available for future allocation under the stock option plan as of March 31, 2022[72](index=72&type=chunk) Share-Based Compensation Expense | Period | Total Expense ($) | Allocated to G&A ($) | Allocated to R&D ($) | |:---|:---|:---|:---|\n| Three months ended March 31, 2022 | 195,085 | 103,401 | 91,684 | | Nine months ended March 31, 2022 | 521,006 | 307,885 | 213,121 | - Unrecognized compensation cost related to unvested options was **$431,558** as of March 31, 2022, to be recognized over a weighted-average vesting period of **1.2 years**[75](index=75&type=chunk) [11. Lease Obligations](index=22&type=section&id=11.%20LEASE%20OBLIGATIONS) Lease obligations significantly increased due to the BayMedica acquisition, resulting in total undiscounted lease liabilities of **$1,276,971** as of March 31, 2022 - The acquisition of BayMedica included an operating lease for a corporate office with a remaining term of **2.1 years**[77](index=77&type=chunk) Lease Maturity Analysis (March 31, 2022) | Period | Amount ($) | |:---|:---|\n| Less than one year | 431,680 | | One to five years | 845,291 | | More than five years | - | | Total undiscounted lease liabilities | 1,276,971 | [12. Basic and Diluted Loss Per Share](index=23&type=section&id=12.%20BASIC%20AND%20DILUTED%20LOSS%20PER%20SHARE) Basic and diluted loss per share was **$(0.25)** for the three months and **$(0.81)** for the nine months ended March 31, 2022, with an increased weighted average number of common shares outstanding Basic and Diluted Loss Per Share | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Nine Months Ended March 31, 2022 | Nine Months Ended March 31, 2021 | |:---|:---|:---|:---|:---|\n| Net loss for the period ($) | (3,475,665) | (3,101,475) | (10,730,094) | (6,944,336) | | Basic and diluted loss per share ($) | (0.25) | (0.41) | (0.81) | (1.11) | | Weighted average common shares outstanding | 14,151,544 | 7,549,040 | 13,326,754 | 6,277,824 | [13. Segment Information](index=23&type=section&id=13.%20SEGMENT%20INFORMATION) Following the BayMedica acquisition, the company operates in two segments: InMed Pharmaceuticals (R&D) and BayMedica (manufacturing), with BayMedica generating all sales for the periods presented - The company has two reportable segments: InMed Pharmaceuticals (R&D of cannabinoid-based pharmaceuticals) and BayMedica (manufacturing technologies for rare cannabinoids in health and wellness)[82](index=82&type=chunk) Segment Performance (Three Months Ended March 31, 2022) | Metric | InMed ($) | BayMedica ($) | Total ($) | |:---|:---|:---|:---|\n| Sales | - | 309,585 | 309,585 | | Operating expenses | 2,940,961 | 844,289 | 3,785,250 | | Net loss | (2,940,961) | (534,704) | (3,475,665) | | Unrestricted cash | 5,386,206 | 512,107 | 5,898,313 | Segment Performance (Nine Months Ended March 31, 2022) | Metric | InMed ($) | BayMedica ($) | Total ($) | |:---|:---|:---|:---|\n| Sales | - | 574,677 | 574,677 | | Operating expenses | 9,477,441 | 1,827,330 | 11,304,771 | | Net loss | (9,477,441) | (1,252,653) | (10,730,094) | | Unrestricted cash | 5,386,206 | 512,107 | 5,898,313 | [14. Non-Cash Transactions](index=24&type=section&id=14.%20NON-CASH%20TRANSACTIONS) Significant non-cash transactions included issuing warrants for services, common shares for the BayMedica acquisition, and cashless exercise of warrants - Issued warrants for services with a fair value of **$739,920** to a placement agent[86](index=86&type=chunk) - Issued **2,050,000** common shares with an estimated fair value of **$3,013,500** for the BayMedica acquisition[86](index=86&type=chunk) - **369,600** warrants were exercised on a cashless basis, resulting in the issuance of **146,814** common shares[85](index=85&type=chunk) [15. Commitments and Contingencies](index=25&type=section&id=15.%20COMMITMENTS%20AND%20CONTINGENCIES) The company has commitments for contract research services and materials totaling approximately **$3.3 million**, with most expected within the next twelve months, alongside potential royalty payments and a patent license agreement accrual - Committed to approximately **$3,319,699** for contract research services and materials, with **$3,209,699** expected within the next twelve months[87](index=87&type=chunk) - Accrued **$300,000** for minimum royalty payments under a patent license agreement, with 2021 payments deferred to 2022[94](index=94&type=chunk) - Committed to issue up to **17,500** warrants upon achievement of certain milestones under a technology licensing agreement[93](index=93&type=chunk) [16. Financial Risk Management](index=26&type=section&id=16.%20FINANCIAL%20RISK%20MANAGEMENT) The company is exposed to foreign currency and interest rate risks, maintains minimal credit risk, and manages liquidity despite going concern uncertainties - Exposed to foreign currency risk, primarily against the Canadian dollar, where a **1%** change in the CAD/USD exchange rate would result in a **$12,583** gain or loss based on the March 31, 2022 net CAD asset position[99](index=99&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - Interest rate risk exists on **$4,483,590** of floating interest rate cash and cash equivalents as of March 31, 2022[103](index=103&type=chunk) - As of March 31, 2022, the company had a working capital surplus of **$4,641,384**, but still faces liquidity challenges given its going concern uncertainty[106](index=106&type=chunk) [17. Related Party Transactions](index=27&type=section&id=17.%20RELATED%20PARTY%20TRANSACTIONS) Legal services totaling **$27,770** were rendered by Norton Rose Fulbright Canada LLP, a firm where a newly appointed director is a Partner - Legal services of **$27,770** were provided by Norton Rose Fulbright Canada LLP, where Janet Grove, a newly appointed director, is a Partner[107](index=107&type=chunk) [18. Subsequent Events](index=27&type=section&id=18.%20SUBSEQUENT%20EVENTS) Subsequent events include cashless warrant exercises, escrow payments to BayMedica holders, and an At The Market Offering Agreement generating **$0.3 million** in net proceeds - **20,556** warrants were exercised on a cashless basis on April 21, 2022, resulting in **10,556** common shares[108](index=108&type=chunk) - On April 13, 2022, **$300,457** of escrow payments were made to BayMedica's historical equity and convertible debt holders, reflecting **$199,543** in post-closing reductions[109](index=109&type=chunk) - Sold **268,985** common shares under an At The Market Offering Agreement in April 2022, generating **$0.3 million** in net proceeds[110](index=110&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=30&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS.) Management discusses the company's financial condition and results, highlighting its focus on rare cannabinoid development, the BayMedica acquisition's impact, significant operating losses, and the ongoing need for substantial additional funding - The company is a global leader in the research, development, manufacturing, and commercialization of rare cannabinoids, with capabilities spanning pharmaceutical product candidates and B2B supply for the health and wellness industry[118](index=118&type=chunk) - The acquisition of BayMedica in October 2021 significantly expanded the company's cannabinoid manufacturing capabilities and introduced product sales[118](index=118&type=chunk)[122](index=122&type=chunk) - The company expects to incur substantial operating losses and negative operating cash flows for the foreseeable future, requiring additional funding through equity, debt, or strategic transactions[123](index=123&type=chunk)[125](index=125&type=chunk)[174](index=174&type=chunk) [Overview](index=30&type=section&id=Overview) InMed Pharmaceuticals Inc. is a clinical-stage pharmaceutical company and B2B rare cannabinoid supplier, focusing on drug candidates for EB and glaucoma, while incurring significant operating losses and requiring substantial future funding - InMed is a global leader in rare cannabinoid research, development, manufacturing, and commercialization, serving both pharmaceutical and health & wellness B2B sectors[118](index=118&type=chunk) - The company's lead drug candidates are INM-755 for Epidermolysis bullosa (EB) and INM-088 for glaucoma, both utilizing cannabinol (CBN) and intended for topical application to minimize systemic exposure[120](index=120&type=chunk)[121](index=121&type=chunk) - Net loss for the nine months ended March 31, 2022, was **$10.7 million**, contributing to an accumulated deficit of **$85.6 million**, and the company anticipates continued operating losses[123](index=123&type=chunk) [Recent Developments](index=33&type=section&id=Recent%20Developments) Recent developments include a **$12.0 million** private placement, commencement of a Phase 2 clinical trial for INM-755, the BayMedica acquisition, and the launch of B2B sales for rare cannabinoids CBT and CBDV - Closed a **$12.0 million** private placement on July 2, 2021, yielding approximately **$11.0 million** in net proceeds[128](index=128&type=chunk) - Commenced a Phase 2 clinical trial of INM-755 (cannabinol) cream for Epidermolysis Bullosa (EB) on September 30, 2021[129](index=129&type=chunk) - Acquired BayMedica Inc. on October 13, 2021, for **2.05 million** common shares and **$1 million** in escrow, expanding rare cannabinoid manufacturing and commercialization[130](index=130&type=chunk) - Launched B2B sales of rare cannabinoids cannabicitran (CBT) and cannabidivarin (CBDV) in January and April 2022, respectively[131](index=131&type=chunk) [Components of Results of Operations](index=33&type=section&id=Components%20of%20Results%20of%20Operations) This section outlines revenue from rare cannabinoid sales, cost of sales, and operating expenses including R&D, G&A, amortization, depreciation, and share-based payments, with other income primarily from interest - Revenue is recognized from manufacturing and distribution sales of bulk rare cannabinoids when control is transferred to the customer[132](index=132&type=chunk) - Research and development expenses include external CRO/CDMO costs, salaries, research supplies, and patent fees, expensed as incurred[134](index=134&type=chunk)[138](index=138&type=chunk) - General and administrative expenses cover personnel costs, investor relations, legal, accounting, and facility-related costs[143](index=143&type=chunk) - Share-based payments expense is recognized for equity-settled share awards using the Black-Scholes option pricing model[147](index=147&type=chunk) [Results of Operations - Three Months Ended March 31, 2022 and 2021](index=36&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20March%2031,%202022%20and%202021) For the three months ended March 31, 2022, the company reported initial sales and gross profit from the BayMedica acquisition, with net loss increasing by **12%** to **$(3.48) million** due to higher general and administrative expenses and BayMedica's operating costs Financial Performance (Three Months Ended March 31) | Metric | 2022 ($ thousands) | 2021 ($ thousands) | Change ($ thousands) | % Change | |:---|:---|:---|:---|:---|\n| Sales | 310 | - | 310 | nm | | Cost of sales | 127 | - | 127 | nm | | Gross profit | 183 | - | 183 | nm | | Research and development and patents | 1,754 | 1,773 | (19) | -1% | | General and administrative | 1,915 | 1,334 | 581 | 44% | | Amortization and depreciation | 54 | 27 | 27 | 100% | | Total operating expenses | 3,723 | 3,134 | 589 | 19% | | Net loss | (3,476) | (3,101) | (375) | 12% | - Sales of **$0.3 million** and gross profit of **$0.2 million** were realized in the BayMedica segment for the three months ended March 31, 2022, with no comparable figures in 2021[150](index=150&type=chunk) - InMed segment's R&D expenses decreased by **$0.4 million** (**22%**) due to decreased INM-755 clinical trial activities, while BayMedica contributed **$0.4 million** in R&D expenses[151](index=151&type=chunk)[152](index=152&type=chunk) - General and administrative expenses increased by **$0.2 million** (**17%**) in the InMed segment due to higher accounting, legal, and investor relations fees, plus **$0.3 million** from BayMedica's operations[153](index=153&type=chunk)[154](index=154&type=chunk) [Results of Operations - Nine Months Ended March 31, 2022 and 2021](index=38&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%20Ended%20March%2031,%202022%20and%202021) For the nine months ended March 31, 2022, sales of **$0.6 million** and gross profit of **$0.3 million** were recorded from the BayMedica segment, while net loss increased by **55%** to **$(10.73) million** due to significantly higher R&D and G&A expenses Financial Performance (Nine Months Ended March 31) | Metric | 2022 ($ thousands) | 2021 ($ thousands) | Change ($ thousands) | % Change | |:---|:---|:---|:---|:---|\n| Sales | 575 | - | 575 | nm | | Cost of sales | 281 | - | 281 | nm | | Gross profit | 294 | - | 294 | nm | | Research and development and patents | 5,781 | 3,622 | 2,159 | 60% | | General and administrative | 5,125 | 2,918 | 2,207 | 76% | | Amortization and depreciation | 132 | 92 | 40 | 43% | | Total operating expenses | 11,038 | 6,632 | 4,406 | 66% | | Net loss | (10,730) | (6,944) | (3,786) | 55% | - Sales of **$0.6 million** and gross profit of **$0.3 million** were generated by the BayMedica segment, with no comparable figures in 2021[157](index=157&type=chunk) - InMed segment's R&D expenses increased by **$1.2 million** (**34%**) due to increased INM-755 clinical trial activities, and BayMedica contributed **$0.9 million** in R&D expenses[158](index=158&type=chunk)[159](index=159&type=chunk) - General and administrative expenses increased by **$1.6 million** (**54%**) in the InMed segment due to legal fees, investor relations, personnel, and higher insurance, plus **$0.6 million** from BayMedica's operations[160](index=160&type=chunk)[161](index=161&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company, historically funded by share sales, continues to incur significant operating losses, with **$5.9 million** in cash as of March 31, 2022, and faces substantial doubt about its going concern ability, requiring additional funding - Cash and cash equivalents were **$5.9 million** as of March 31, 2022[166](index=166&type=chunk) Cash Flow Summary (Nine Months Ended March 31) | Activity | 2022 ($ thousands) | 2021 ($ thousands) | |:---|:---|:---|\n| Net cash used in operating activities | (11,537) | (7,785) | | Net cash provided by investing activities | 53 | - | | Net cash provided by financing activities | 10,019 | 10,938 | | Net increase (decrease) in cash and cash equivalents | (1,465) | 3,648 | - The company expects its cash to fund operations only into Q2 fiscal 2023, necessitating additional funding through equity, debt, or strategic transactions[180](index=180&type=chunk)[181](index=181&type=chunk) [Off-Balance Sheet Arrangements](index=42&type=section&id=Off-Balance%20Sheet%20Arrangements) The company did not have any off-balance sheet arrangements during the periods presented - The company did not have any off-balance sheet arrangements during the periods presented[186](index=186&type=chunk) [Critical Accounting Policies and Significant Judgments and Estimates](index=42&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Judgments%20and%20Estimates) Financial statement preparation requires management estimates and assumptions, particularly for business combinations and the critical judgment of the company's going concern ability due to recurring losses - Key estimates and assumptions include fair values of assets acquired and liabilities assumed in acquisitions, useful life of intangible assets, impairment assessment for long-lived assets, and fair value of share-based payments and warrants[27](index=27&type=chunk) - Business combinations are accounted for using the acquisition method, with fair value allocation to identifiable tangible and intangible assets (including IPR&D, patents, trademarks) and liabilities, and the remainder classified as goodwill[190](index=190&type=chunk)[191](index=191&type=chunk) - The company's ability to continue as a going concern is a critical judgment, given recurring losses and the expectation that current cash will only fund operations into Q2 fiscal 2023[192](index=192&type=chunk)[195](index=195&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=44&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) As a smaller reporting company, InMed Pharmaceuticals Inc. is not required to provide detailed market risk disclosures in this report - As a smaller reporting company, InMed Pharmaceuticals Inc. is not required to provide detailed market risk disclosures[198](index=198&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=44&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) As of March 31, 2022, the company's disclosure controls and procedures were ineffective due to a material weakness in internal controls over financial reporting, with a remediation plan underway for completion by fiscal year-end 2022 - As of March 31, 2022, disclosure controls and procedures were not effective due to a material weakness in internal controls over financial reporting, specifically a lack of resources in the finance function[199](index=199&type=chunk) - A remediation plan is being implemented, involving additional finance resources, changes to closing reporting processes, and external assistance[202](index=202&type=chunk) - The material weakness is expected to be remediated by the end of fiscal year 2022, once controls operate effectively for a sufficient period[202](index=202&type=chunk) PART II – OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=45&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is not currently involved in any material active legal actions - The company is not involved in any material active legal actions[205](index=205&type=chunk) [ITEM 1A. RISK FACTORS](index=45&type=section&id=ITEM%201A.%20RISK%20FACTORS) As a smaller reporting company, InMed Pharmaceuticals Inc. is not required to provide specific risk factor disclosures in this report - As a smaller reporting company, the registrant is not required to provide risk factor information in this item[206](index=206&type=chunk) - For a discussion of potential risks and uncertainties, refer to the company's Form 10-K dated September 24, 2021, and Registration Statement on Form S-3 filed March 5, 2022[206](index=206&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=45&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) There were no unregistered sales of equity securities or use of proceeds to report for the period - No unregistered sales of equity securities and use of proceeds to report[207](index=207&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=45&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) There were no defaults upon senior securities to report for the period - No defaults upon senior securities to report[208](index=208&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURE](index=45&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURE) There is no mine safety disclosure to report for the period - No mine safety disclosure to report[209](index=209&type=chunk) [ITEM 5. OTHER INFORMATION](index=45&type=section&id=ITEM%205.%20OTHER%20INFORMATION) There is no other information to report for the period - No other information to report[209](index=209&type=chunk) [ITEM 6. EXHIBITS](index=46&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed as part of the Form 10-Q report, including certifications and various Inline XBRL documents - Exhibits include certifications from the CEO and Interim CFO (pursuant to Rule 13a-14(a) and 18 U.S.C. Section 1350) and Inline XBRL documents (Instance, Schema, Calculations, Definitions, Labels, Presentations, and Cover Page Interactive Data File)[211](index=211&type=chunk) SIGNATURES

Corporate Presentation MARCH 2022 :INM www.inmedpharma.com : INM 2 Forward Looking Statements This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking statements") including, among others, statements concerning: unlocking the full potential of cannabinoid pharmaceuticals; anticipated development activities, timelines, catalysts, and milestones; the potential benefits of product candidates; anticipat ...

Financial Data and Key Metrics Changes - For the six months ended December 31, 2021, the company recorded a net loss of approximately $7.3 million or $0.56 per share, compared to a net loss of $3.8 million or $0.68 per share for the same period in 2020, indicating an increase in net loss attributed to higher R&D spending [32][34] - R&D expenses for the six months were approximately $4 million, up from $1.8 million in the previous year, primarily due to increased activities related to the INM-755 clinical trial [32][33] - G&A expenses were approximately $3.2 million for the period, compared to $1.6 million for the same period last year, driven by personnel expenses, legal fees, and higher insurance fees [34] Business Line Data and Key Metrics Changes - The company realized B2B sales of bulk rare cannabinoids of approximately $300,000 for the three months ended December 31, 2021, marking the first quarter that revenues from the BayMedica acquisition were included [36] - Prior to the acquisition, BayMedica had cumulative revenues of $2.4 million over a 20-month period ending September 2021, primarily from one product, CBC [38] Market Data and Key Metrics Changes - The current market prices for rare cannabinoids range from approximately $17,000 to $30,000 per kilogram, with the company believing it can be competitive on pricing while maintaining attractive margins [15] - CBDV and THCV are expected to have high demand, with CBDV thought to have potential applications in conditions such as autism spectrum disorder, and THCV showing promise in appetite suppression and weight loss [66] Company Strategy and Development Direction - The company aims to position itself as a leader in the rare cannabinoid space, focusing on both pharmaceutical and health and wellness markets [9][10] - The acquisition of BayMedica is central to the company's strategy, allowing for expedited integration and commercial activities, including product launches [10][12] - The company plans to launch new products, enhance sales and marketing infrastructure, and develop new cannabinoid analogues for pharmaceutical applications [13][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the COVID-19 pandemic, including global supply disruptions and staffing issues affecting development timelines [28] - The company expects to see considerable progress in advancing its programs over the next few months, with key priorities including product launches and updates on clinical trials [29] Other Important Information - The company announced the hiring of Jerry Griffin as Vice President of Sales and Marketing at BayMedica, aimed at accelerating commercial plans and growing market share [17] - The company filed a shelf prospectus for $50 million, which is a typical component of a capital market strategy for growth companies [40] Q&A Session Summary Question: When can we expect initial data from the INM-755 trial? - Management indicated there will be no interim analysis, and results will be announced after the trial is completed and data analyzed [46] Question: What would be considered positive data in the EB trial? - The trial design allows each patient to serve as their own control, comparing the active cream to a vehicle cream [47] Question: Can you provide insights on peak sales for the new cannabinoid products? - Management stated that it is difficult to forecast peak sales due to limited data on market opportunities for rare cannabinoids [50][52] Question: What level of revenues is needed for BayMedica to break even? - Management noted that it is challenging to determine breakeven levels due to various factors affecting capital deployment and product launches [56] Question: What is the expected cash runway for the company? - The company expects its cash and cash equivalents to be sufficient to fund operations into the first quarter of fiscal 2023 [42]