Full Press Release Details
InMed Reports Third Quarter Fiscal 2025 Financial Results and Provides Business Update
Vancouver, British Columbia - May 12, 2025.
InMed Pharmaceuticals Inc. (NASDAQ: INM) ("InMed" or the "Company"), a pharmaceutical company focused on developing
a pipeline of proprietary small molecule drug candidates for diseases with high unmet medical needs, today reports financial results for
the third quarter of the fiscal year 2025 which ended March 31, 2025.
The Company's full financial statements
and related MD&A for the third quarter ended March 31, 2025, are available at www.inmedpharma.com, www.sedar.com and
Eric A. Adams, InMed's Chief Executive Officer,
commented, "We continue to advance INM-901 as a differentiated approach to treating Alzheimer's disease by targeting neuroinflammation
beyond conventional amyloid beta and tau-targeting strategies, and we look forward to sharing additional data in the near term."
Adams continued, "On the commercial side,
BayMedica continues to deliver stable revenues quarter-over-quarter. While gross margins were impacted by increased pricing pressure,
we remain focused on optimizing our product mix and improving operational efficiencies."
Business Update - Pharmaceutical Development
INM-901: Targeting multiple biological pathways
in Alzheimer's disease ( AD')
INM-901 is a proprietary small molecule drug candidate
currently under development for the treatment of Alzheimer's disease (AD), with multiple mechanisms of action.
Positive data from long-term in vivo preclinical
AD studies highlighted INM-901's ability to significantly reduce neuroinflammation - a key factor in the onset and progression of
Alzheimer's disease. The Company is currently conducting further research examining INM-901's impact on neuroinflammation
independent of amyloid beta plaques and tau protein tangles which are the primary targets of conventional therapies.
Additionally, analyses from this long-term study
are underway, including detailed molecular evaluations aimed at elucidating INM-901's mechanisms of action and its potential role
in addressing the complex pathology of AD.
INM-089: Targeting the treatment of dry Age-related
Macular Degeneration ("AMD")
INM-089 is a proprietary small molecule drug candidate
offering a differentiated approach to the treatment of dry age-related macular degeneration (AMD). Preclinical studies of INM-089 demonstrated
significant functional and pathological improvements in a dry AMD disease study model. Key characteristics of INM-089 include:
Financial commentary:
For the three months ended March 31, 2025, the
Company reported a net loss of $2.12 million, compared to a net loss of $1.72 million in the same period the previous year. The increase
was largely driven by higher expenses related to pharmaceutical research and development activities, as well as financing costs.
Pharmaceutical research and development and patent
expenses were $0.91 million for the three months ended March 31, 2025, compared with $0.65 million for the three months ended March 31,
2024. The increase was primarily due to an increase in external contractors relating to our INM-901 and INM-089 programs and patent fees,
offset by a decrease in compensation expense.
General and administrative expenses were $1.33
million for the three months ended March 31, 2025, compared to $3.75 million the same period the previous year. The decrease resulted
primarily from a combination of changes including lower accounting fees, share-based payments fees, and shareholder communication fees.
As of March 31, 2025, the Company's cash,
cash equivalents and short-term investments were $4.68 million, which compares to $6.57 million at June 30, 2024. The Company continues
to closely monitor expenses while advancing its pharmaceutical pipeline candidates and expects its cash will be sufficient to fund its
planned operating expenses and capital expenditures into the third quarter of calendar year 2025, depending on the level and timing of
BayMedica commercial revenues, as well as the level and timing of our operating expenses. The Company expects to seek additional funding
through equity financings, debt financings and/or other capital sources, including collaborations with other companies, government contracts
or other strategic transactions.
BayMedica's commercial business generated revenues
of $1.26 million for the three months ended March 31, 2025, compared to $1.18 million for the same period last year, reflecting an 8%
increase. The increase in sales resulted from expanded marketing efforts and increased demand for certain cannabinoid products. Despite
steady revenue quarter-over-quarter, gross margin declined due to competitive pricing pressures and increased sales of lower margin products.
While market demand increased, the need to remain price competitive impacted overall profitability for the period. Certain segments of
our supply chain may be negatively impacted by changes to tariffs by the U.S. and other countries. We are actively analyzing the potential
effects and exploring strategies to mitigate the impact of tariffs on profitability in future quarters.
Table 1. CONDENSED CONSOLIDATED BALANCE SHEETS
InMed Pharmaceuticals Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
Expressed in U.S. Dollars
| March 31, | June 30, | |||||||
| 2025 | 2024 | |||||||
| (unaudited) | ||||||||
| ASSETS | $ | $ | ||||||
| Current | ||||||||
| Cash and cash equivalents | 4,679,826 | 6,571,610 | ||||||
| Short-term investments | 40,582 | 43,064 | ||||||
| Accounts receivable (less provision for credit losses of $nil and $66,775 in March 31, 2025 and June 30, 2024, respectively) | 367,813 | 352,838 | ||||||
| Inventories | 813,970 | 1,244,324 | ||||||
| Prepaids and other current assets | 507,872 | 477,749 | ||||||
| Total current assets | 6,410,063 | 8,689,585 | ||||||
| Non-Current | ||||||||
| Property, equipment and ROU assets, net | 1,108,662 | 1,249,999 | ||||||
| Intangible assets, net | 1,661,109 | 1,783,198 | ||||||
| Other assets | 100,000 | 100,000 | ||||||
| Total Assets | 9,279,834 | 11,822,782 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current | ||||||||
| Accounts payable and accrued liabilities | 1,409,715 | 1,654,011 | ||||||
| Current portion of lease obligations | 429,247 | 317,797 | ||||||
| Total current liabilities | 1,838,962 | 1,971,808 | ||||||
| Non-current | ||||||||
| Lease obligations, net of current portion | 419,347 | 644,865 | ||||||
| Total Liabilities | 2,258,309 | 2,616,673 | ||||||
| Commitments and Contingencies (Note 11) | ||||||||
| Shareholders' Equity | ||||||||
| Common shares, no par value, unlimited authorized shares: 1,207,186 (June 30, 2024 - 445,948 ) issued and outstanding | 87,457,095 | 82,784,400 | ||||||
| Additional paid-in capital | 34,885,442 | 35,368,899 | ||||||
| Accumulated deficit | (115,449,581 | ) | (109,075,759 | ) | ||||
| Accumulated other comprehensive income | 128,569 | 128,569 | ||||||
| Total Shareholders' Equity | 7,021,525 | 9,206,109 | ||||||
| Total Liabilities and Shareholders' Equity | 9,279,834 | 11,822,782 |
Table 2. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED
InMed Pharmaceuticals Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Expressed in U.S. Dollars
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| $ | $ | $ | $ | |||||||||||||
| Sales | 1,261,578 | 1,172,601 | 3,637,923 | 3,314,663 | ||||||||||||
| Cost of sales | 1,085,953 | 883,143 | 2,507,991 | 2,679,821 | ||||||||||||
| Gross profit | 175,625 | 289,458 | 1,129,932 | 634,842 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Research and development and patents | 909,653 | 656,764 | 2,741,200 | 2,558,648 | ||||||||||||
| General and administrative | 1,328,996 | 1,374,095 | 4,304,505 | 4,036,784 | ||||||||||||
| Amortization and depreciation | 52,306 | 54,767 | 160,087 | 164,833 | ||||||||||||
| Foreign exchange loss | 22,165 | 48,156 | 50,608 | 36,717 | ||||||||||||
| Total operating expenses | 2,313,120 | 2,133,782 | 7,256,400 | 6,796,982 | ||||||||||||
| Other Income (Expense) | ||||||||||||||||
| Interest and other income | 16,565 | 121,458 | 104,195 | 424,261 | ||||||||||||
| Finance expense | - | - | (351,549 | ) | - | |||||||||||
| Loss before income taxes | (2,120,930 | ) | (1,722,866 | ) | (6,373,822 | ) | (5,737,879 | ) | ||||||||
| Income tax expense | - | - | - | - | ||||||||||||
| Net loss for the period | (2,120,930 | ) | (1,722,866 | ) | (6,373,822 | ) | (5,737,879 | ) | ||||||||
| Net loss per share for the period | ||||||||||||||||
| Basic and diluted | (1.94 | ) | (3.58 | ) | (7.93 | ) | (16.48 | ) | ||||||||
| Weighted average outstanding common shares | ||||||||||||||||
| Basic and diluted | 1,095,973 | 480,649 | 803,909 | 348,097 |
Table 3. CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS UNAUDITED
InMed Pharmaceuticals Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
For the Nine months March 31, 2025 and 2024
Expressed in U.S. Dollars
| March 31, 2025 | March 31, 2024 | |||||||
| Cash used in: | $ | $ | ||||||
| Operating Activities | ||||||||
| Net loss | (6,373,822 | ) | (5,737,879 | ) | ||||
| Items not requiring cash: | ||||||||
| Amortization and depreciation | 160,087 | 164,833 | ||||||
| Share-based compensation | 92,577 | 98,760 | ||||||
| Amortization of right-of-use assets | 243,555 | 287,824 | ||||||
| Interest income received on short-term investments | 567 | (1,271 | ) | |||||
| Unrealized foreign exchange loss | 44,875 | 2,607 | ||||||
| Inventory write-down | - | 263,404 | ||||||
| Payments on lease obligations | (315,221 | ) | (289,302 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Inventories | 430,354 | 159,000 | ||||||
| Prepaids and other currents assets | (12,145 | ) | (520,653 | ) | ||||
| Other non-current assets | - | 4,908 | ||||||
| Accounts receivable | (14,975 | ) | 52,718 | |||||
| Accounts payable and accrued liabilities | (244,297 | ) | (425,446 | ) | ||||
| Deferred rent | - | (16,171 | ) | |||||
| Total cash used in operating activities | (5,988,445 | ) | (5,956,668 | ) | ||||
| Investing Activities | ||||||||
| Sale of short-term investments | 40,039 | 42,513 | ||||||
| Purchase of short-term investments | (40,039 | ) | (42,513 | ) | ||||
| Purchase of property and equipment | - | (9,293 | ) | |||||
| Total cash (used in) provided by investing activities | - | (9,293 | ) | |||||
| Financing Activities | ||||||||
| Proceeds from private placement net of issuance costs | 4,361,220 | 5,216,193 | ||||||
| Share issuance costs | (264,559 | ) | (562,151 | ) | ||||
| Total cash provided by financing activities | 4,096,661 | 4,654,042 | ||||||
| Decrease in cash and cash equivalents during the period | (1,891,784 | ) | (1,311,919 | ) | ||||
| Cash and cash equivalents beginning of the period | 6,571,610 | 8,912,517 | ||||||
| Cash and cash equivalents end of the period | 4,679,826 | 7,600,598 | ||||||
| SUPPLEMENTARY CASH FLOW INFORMATION: | ||||||||
| Cash Paid During the Year for: | ||||||||
| Income taxes | $ | - | $ | - | ||||
| Interest | $ | - | $ | - | ||||
| - | ||||||||
| SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
| Fair value of warrant modification recorded as equity issuance costs | $ | - | $ | 3,508,749 | ||||
| Preferred investment options to its placement agent | $ | - | $ | 325,699 | ||||
| Recognition of Right-of-use asset and corresponding operating lease liability | $ | 187,223 | $ | 968,376 |
Pharmaceuticals is a pharmaceutical company focused on developing a pipeline of proprietary small molecule drug candidates targeting the
CB1/CB2 receptors. InMed's pipeline consists of three separate programs in the treatment of Alzheimer's, ocular and dermatological
indications. For more information, visit www.inmedpharma.com.
Vice President, Investor Relations
and Corporate Communications
Cautionary Note Regarding Forward-Looking Information:
This news release contains "forward-looking
information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning
of applicable securities laws. Forward-looking statements are frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "intends", "potential", "possible", "would"
and similar expressions. Such statements, based as they are on current expectations of management, inherently involve numerous risks,
uncertainties and assumptions, known and unknown, many of which are beyond our control. Forward-looking information is based on management's
current expectations and beliefs and is subject to a number of risks and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. Without limiting the foregoing, forward-looking information in this news release
includes, but is not limited to, statements about; the efficacy of INM-901, INM-901's ability to treat Alzheimer's, marketability
and uses for INM-901, the results of further studies into INM-901 and acceleration of the development of InMed's Alzheimer's
program; the efficacy of INM-089, INM-089's ability to treat AMD, marketability and uses for INM-089, the results of further studies
into INM-089 and the further development of InMed's AMD program; optimizing BayMedica's product mix and improving operational
efficiencies; expectations that the Company's cash will be sufficient to fund its planned operating expenses and capital expenditures
requirements into the third quarter of calendar year 2025; expectations that the Company will seek additional funding.
Additionally, there are known and unknown risk
factors which could cause InMed's actual results, performance, or achievements to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking information contained herein. A complete discussion of the risks
and uncertainties facing InMed's stand-alone business is disclosed in InMed's Annual Report on Form 10-K, in Item 1A. of the
Quarterly Report for the period ended March 31, 2025, and other filings with the Securities and Exchange Commission on www.sec.gov.
All forward-looking information herein is qualified
in its entirety by this cautionary statement, and InMed disclaims any obligation to revise or update any such forward-looking information
or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results,