InMed Pharmaceuticals(US:INM)2026-02-11 22:04Financial Performance - Total sales for the three months ended December 31, 2025, were $820,188, a decrease of 26.2% compared to $1,111,707 for the same period in 2024[18]. - Gross profit for the six months ended December 31, 2025, was $587,353, down 38.4% from $954,307 in 2024[18]. - The net loss for the three months ended December 31, 2025, was $2,028,223, compared to a net loss of $2,575,024 for the same period in 2024[18]. - For the six months ended December 31, 2025, the net loss was approximately $3.8 million, compared to a net loss of $4.3 million for the same period in 2024, representing a decrease of about 11.5%[22]. - Net loss for the three months ended December 31, 2025, was $2,028,223, compared to a net loss of $2,575,024 for the same period in 2024, representing a 21.3% improvement[95]. - For the six months ended December 31, 2025, total sales were $1,940,309, down 18.3% from $2,376,345 in the same period of 2024[95]. - Research and development expenses for the three months ended December 31, 2025, were $630,636, a reduction of 29.6% from $895,176 in 2024[18]. - Research and development expenses for the six months ended December 31, 2025, were $1,212,248, a decrease of 24.1% compared to $1,595,321 in the same period of 2024[95]. Cash and Assets - Cash and cash equivalents decreased to $6,954,834 as of December 31, 2025, from $11,075,871 as of June 30, 2025[16]. - Cash and cash equivalents as of December 31, 2025, were $6,954,834, an increase from $5,583,039 as of June 30, 2025[95]. - Total assets decreased to $11,191,484 as of December 31, 2025, from $15,580,040 as of June 30, 2025[16]. - Total cash used in operating activities for the six months ended December 31, 2025, was approximately $3.98 million, compared to $4.33 million for the same period in 2024, indicating improved cash management[22]. - The company expects its cash and cash equivalents will be sufficient to fund operations into the fourth quarter of calendar 2026, depending on revenue realization from BayMedica[28]. Liabilities and Deficits - Total liabilities decreased to $1,603,820 as of December 31, 2025, from $2,145,545 as of June 30, 2025[16]. - The company reported an accumulated deficit of $120,993,014 as of December 31, 2025[16]. - As of December 31, 2025, the accumulated deficit reached approximately $121.0 million, reflecting ongoing financial challenges[27]. - The company has substantial doubt about its ability to continue as a going concern within one year from the issuance of the financial statements[30]. Funding and Capital - The company has raised capital primarily through the sale of common shares, with a private placement generating $1.03 million in 2024[27]. - The company plans to seek additional funding through equity financings, debt financings, or collaborations, but may face challenges in obtaining financing on acceptable terms[29]. - The Company completed a Private Placement on June 26, 2025, issuing 1,952,363 common shares at a price of $2.561 per share, resulting in gross proceeds of approximately $5.0 million[75]. - The Company issued 1,208,336 Common Shares for gross proceeds of approximately $6.2 million during the year ended June 30, 2025, after offsetting $0.4 million in related fees[80]. Inventory and Expenses - The company reported an inventory write-down of $70,000 during the six months ended December 31, 2025, indicating potential issues with inventory management[22]. - The Company recorded an inventory write-down of $70,000 due to net realizable value during the three and six months ended December 31, 2025, compared to no write-down in the same period of 2024[69]. - Total inventories as of December 31, 2025, amounted to $947,898, with a total inventory reserve of $278,737[68]. - The company incurred share-based compensation expenses of approximately $45,469 for the six months ended December 31, 2025, down from $52,123 in the same period of 2024[22]. - Total expenses from share-based payment transactions for the three months ended December 31, 2025, were $25,564, with $16,829 allocated to general and administrative expenses[87]. Customer Concentration - Customer concentration risk for the three months ended December 31, 2025, shows that Customer A accounts for 30% of revenues, while Customer B accounts for 22%[43]. - As of December 31, 2025, accounts receivable concentration risk indicates that Customer F represents 37% and Customer G represents 32% of total accounts receivable[43]. Other Agreements and Legal Matters - The company has entered into a technology license agreement with a third party, which includes annual royalty payments contingent on net sales of products made using the licensed process[103]. - The company is currently involved in arbitration proceedings regarding a technology license agreement, which could have a material adverse impact on its business and financial condition[107]. - The company has not recognized any liabilities related to indemnification obligations, believing the fair value of these obligations is minimal[102].