InMed Pharmaceuticals(INM) - 2026 Q1 - Quarterly Report

Financial Performance - Sales for the three months ended September 30, 2025, were $1,120,121, a decrease of 11.4% compared to $1,264,638 for the same period in 2024[14]. - Gross profit for the quarter was $403,159, down from $493,413 in the prior year, indicating a decline of approximately 18.3%[14]. - The net loss for the period was $1,726,899, compared to a net loss of $1,677,868 in the prior year, reflecting an increase in loss of approximately 2.9%[14]. - For the three months ended September 30, 2025, InMed Pharmaceuticals reported a net loss of $1,726,899, compared to a net loss of $1,677,868 for the same period in 2024, indicating a year-over-year increase in losses of approximately 2.9%[18]. - Total cash used in operating activities for the three months ended September 30, 2025, was $1,607,616, a decrease of 12% compared to $1,826,810 for the same period in 2024[18]. - The company recognized total expenses from share-based payment transactions of $20,205 for the three months ended September 30, 2025, compared to $28,964 for the same period in 2024[76]. Assets and Liabilities - Total current assets decreased to $10,799,967 as of September 30, 2025, down from $12,867,279 as of June 30, 2025, representing a decline of approximately 16%[13]. - Cash and cash equivalents decreased to $9,331,077 as of September 30, 2025, down from $11,075,871 as of June 30, 2025, a reduction of about 15.7%[13]. - Total liabilities decreased to $1,770,462 as of September 30, 2025, from $2,145,545 as of June 30, 2025, a decline of approximately 17.5%[13]. - Shareholders' equity decreased to $11,590,623 as of September 30, 2025, down from $13,434,495 as of June 30, 2025, representing a decrease of about 13.7%[13]. - As of September 30, 2025, the Company reported total inventories of $890,807, a decrease from $961,173 as of June 30, 2025, with a write-down due to obsolescence amounting to $208,737[61]. - Accounts payable and accrued liabilities totaled $1,130,219 as of September 30, 2025, down from $1,404,283 as of June 30, 2025[64]. Funding and Financial Challenges - The company has an accumulated deficit of approximately $119 million as of September 30, 2025, reflecting ongoing financial challenges since inception[23]. - InMed expects its cash and cash equivalents will be sufficient to fund operations into the fourth quarter of calendar 2026, contingent on the timing of BayMedica revenues from bulk rare cannabinoids sales[24]. - The company has indicated substantial doubt about its ability to continue as a going concern within one year from the issuance of the financial statements, primarily due to recurring losses and negative cash flows[26]. - InMed is actively seeking additional funding through equity and debt financings, collaborations, and strategic transactions to support its operations[25]. Research and Development - Research and development expenses were $581,612 for the quarter, a decrease of 16.9% from $700,145 in the same quarter of 2024[14]. - The company continues to focus on optimizing proprietary manufacturing approaches and technologies to enhance production efficiency and product viability[8]. Shareholder Information - The company issued 602,000 common shares during the quarter, resulting in an increase in common shares outstanding to 2,604,186[16]. - The Company completed a Private Placement on June 26, 2025, raising approximately $5.0 million from the sale of 1,952,363 common shares at a price of $2.561 per share[67]. - As of September 30, 2025, the Company had 3,939,210 warrants outstanding with a weighted average exercise price of $48.43, down from 4,541,210 at the beginning of the period[73]. - The unrecognized compensation cost related to unvested options was $50,055, expected to be recognized over a weighted-average vesting period of approximately 1.13 years[77]. Segment Information - The company has two operating segments: Pharma, focused on drug development, and Commercial, focused on manufacturing technologies for cannabinoids[56]. - The company reported total sales of $1,120,121 in the Commercial segment for the three months ended September 30, 2025, a decrease from $1,264,638 in the same period of 2024[83]. - Total assets in the Pharma segment decreased from $13.7 million as of June 30, 2025, to $11.4 million as of September 30, 2025[82]. Intangible Assets and Amortization - The Company has intangible assets totaling $2,927,420 as of September 30, 2025, with accumulated amortization of $1,347,851, resulting in net intangible assets of $1,579,569[62]. - The Company expects to incur amortization expense of approximately $162,746 annually over the next five years for its intangible assets[63]. Lease Obligations - The company is committed to minimum lease payments totaling $668,267, with a present value of lease liabilities at $640,243 as of September 30, 2025[78]. - BayMedica is obligated to pay $1,295,759 over three years for a lease extension in South San Francisco, California[79].