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].
InMed Pharmaceuticals(INM) - 2023 Q3 - Quarterly Report