Full Press Release Details
InMed Pharmaceuticals Reports Third
Quarter Fiscal 2024 Financial Results and Provides Business Update
May 14, 2024 - InMed Pharmaceuticals Inc. ("InMed" or the "Company") (Nasdaq: INM), a clinical stage pharmaceutical
company focused on developing a pipeline of proprietary small molecule drug candidates, today announced financial results and business
update for the third quarter of the fiscal year 2024, which ended March 31, 2024.
The Company's full financial statements
and related MD&A for the third quarter ended March 31, 2024, are available at www.inmedpharma.com, www.sedar.com and
Eric A. Adams, InMed
President and CEO, commented, "The third quarter of fiscal year 2024 was another positive quarter for the Company as we continue
to make exciting progress in our pharmaceutical pipeline and deliver steady growth in our commercial business. Last month we announced
important updates in our two preclinical programs in the treatment of Alzheimer's disease ("ALZ") and dry Age-related
Macular Degeneration ("dry AMD"). Both programs utilize proprietary small molecule drug candidates activating both the CB1
/ CB2 receptors as well as other disease-relevant receptors. We are highly encouraged by the positive findings and we are committed
to further advancing our research in these two highly underserved indications."
Adams continued, "Revenues
from the BayMedica commercial business remain consistent with the previous quarter and BayMedica operated as a profitable commercial business
unit in the current quarter. We remain optimistic for the sector as more brands start to incorporate rare cannabinoids into their product
Pharmaceutical Development
INM-901: A multipronged
approach in treatment of Alzheimer's disease.
INM-901 is a proprietary small molecule drug candidate
being developed as a potential treatment for ALZ employing multiple mechanisms of actions. On April 4, 2024, the Company announced additional
preclinical data demonstrating INM-901's positive pharmacological effects. Results included:
InMed continues to accelerate the development
of its ALZ program, with long-term behavioural and mechanism of action / receptor interaction studies currently underway. Data read-out
expected in calendar 3Q 2024.
Additionally, the Company recently announced the
addition of Dr. David G. Morgan, a leader in neurodegenerative disease, to its Scientific Advisory Board ("SAB"), reinforcing
the Company's commitment to advancing it's INM-901 program.
INM-089: Neuroprotection
in the treatment of dry AMD
INM-089 is another proprietary small molecule
drug candidate being studied in the treatment of Age-related Macular Degeneration ("AMD"). In April, the Company announced
additional preclinical data for INM-089 further demonstrating positive pharmacological effects. Results from INM-089 preclinical studies
The Company has strategically prioritized the
utilization of its proprietary small molecule drug candidates in its drug development initiatives, resulting in the INM-089 program for
the treatment of dry AMD taking precedence over the INM-088 program in the treatment of glaucoma. Therefore, the Company will not be advancing
INM-088 in the immediate future. Notably, the initial research and data from the INM-088 program have played an instrumental role in shaping
the development of INM-089 program.
BayMedica Commercial
BayMedica revenues were
$3.3 million for the nine months ended March 31, 2024, compared with $1.8 million for the nine months ended March 31, 2023, representing
83% growth over the same period last year. Quarter over quarter revenue has remained flat this period with sales of $1.2 million, same
as the previous quarter. BayMedica operated as a profitable business unit this quarter and continues to make progress lowering manufacturing
costs that should incrementally improve margins over time. While we are optimistic about the long-term growth potential in the rare cannabinoids
sector, we expect revenue to fluctuate in future quarters.
Financial and Corporate Highlights:
Based on current forecasts, the Company
expects its cash will be sufficient to fund its planned operating expenses and capital expenditure requirements into the fourth quarter
of calendar year 2024, depending on the level and timing of realizing BayMedica revenues from the sale of products in the Health &
Wellness sector as well as the level and timing of our operating expenses.
Ms. Alexandra D.J. Mancini, Senior Vice
President, Clinical & Regulatory Affairs, provided notice to the Company and the Company's Board of Directors of her intention
to retire from her position, effective June 30, 2024. Ms. Mancini intends to continue in a consultancy capacity to ensure a smooth transition
of both the INM-755 program and ongoing regulatory matters. The Company would like to thank Ms. Mancini for her significant, valuable
contributions, and leadership during her tenure with InMed and wish her all the best in her retirement. We congratulate her on a tremendous
career in the biotech industry, having played an important role in developing and bringing to market several pharmaceutical products in
Table 1. InMed Pharmaceuticals Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
Expressed in U.S. Dollars
| March 31, 2024 | June 30, | |||||||
| (unaudited) | 2023 | |||||||
| $ | $ | |||||||
| ASSETS | ||||||||
| Current | ||||||||
| Cash and cash equivalents | 7,600,598 | 8,912,517 | ||||||
| Short-term investments | 43,085 | 44,422 | ||||||
| Accounts receivable, net of allowance for credit losses of $66,775 in 2024 and 2023 | 207,681 | 260,399 | ||||||
| Inventories | 1,193,952 | 1,616,356 | ||||||
| Prepaids and other current assets | 1,018,686 | 498,033 | ||||||
| Total current assets | 10,064,002 | 11,331,727 | ||||||
| Non-Current | ||||||||
| Property, equipment and ROU assets, net | 1,370,969 | 723,426 | ||||||
| Intangible assets, net | 1,823,745 | 1,946,279 | ||||||
| Other assets | 100,000 | 104,908 | ||||||
| Total Assets | 13,358,716 | 14,106,340 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current | ||||||||
| Accounts payable and accrued liabilities | 1,183,285 | 1,608,735 | ||||||
| Current portion of lease obligations | 345,545 | 375,713 | ||||||
| Deferred rent | - | 16,171 | ||||||
| Total current liabilities | 1,528,830 | 2,000,619 | ||||||
| Non-current | ||||||||
| Lease obligations, net of current portion | 725,236 | 15,994 | ||||||
| Total Liabilities | 2,254,066 | 2,016,613 | ||||||
| Commitments and Contingencies (Note 11) | ||||||||
| Shareholders' Equity | ||||||||
| Common shares, no par value, unlimited authorized shares: | ||||||||
| 6,344,970 (June 30, 2023 - 3,328,191) issued and outstanding | 80,606,863 | 77,620,252 | ||||||
| Additional paid-in capital | 37,507,306 | 35,741,115 | ||||||
| Accumulated deficit | (107,138,088 | ) | (101,400,209 | ) | ||||
| Accumulated other comprehensive income | 128,569 | 128,569 | ||||||
| Total Shareholders' Equity | 11,104,650 | 12,089,727 | ||||||
| Total Liabilities and Shareholders' Equity | 13,358,716 | 14,106,340 | ||||||
| Related Party Transactions (Note 12) | ||||||||
| Subsequent Events (Note 13) |
Table 2. InMed Pharmaceuticals Inc.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS (unaudited)
Expressed in U.S. Dollars
| For the Three Months Ended 31-Mar | For the Nine Months Ended 31-Mar | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| $ | $ | $ | $ | |||||||||||||
| Sales | 1,172,601 | 1,033,925 | 3,314,663 | 1,824,496 | ||||||||||||
| Cost of sales | 883,143 | 841,414 | 2,416,417 | 1,415,068 | ||||||||||||
| Inventory write-down | - | - | 263,404 | 576,772 | ||||||||||||
| Gross profit | 289,458 | 192,511 | 634,842 | (167,344 | ) | |||||||||||
| Operating Expenses | ||||||||||||||||
| Research and development and patents | 656,764 | 878,303 | 2,558,648 | 3,108,312 | ||||||||||||
| General and administrative | 1,374,095 | 1,412,727 | 4,036,784 | 4,438,083 | ||||||||||||
| Amortization and depreciation | 54,767 | 50,689 | 164,833 | 148,786 | ||||||||||||
| Foreign exchange loss | 48,156 | 2,733 | 36,717 | 79,287 | ||||||||||||
| Total operating expenses | 2,133,782 | 2,344,452 | 6,796,982 | 7,774,468 | ||||||||||||
| Other Income (Expense) | ||||||||||||||||
| Interest and other income | 121,458 | 155,497 | 424,261 | 343,881 | ||||||||||||
| Loss before income taxes | (1,722,866 | ) | (1,996,444 | ) | (5,737,879 | ) | (7,597,931 | ) | ||||||||
| Tax expense | - | (1,500 | ) | - | (11,300 | ) | ||||||||||
| Net loss for the period | (1,722,866 | ) | (1,997,944 | ) | (5,737,879 | ) | (7,609,231 | ) | ||||||||
| Net loss per share for the period | ||||||||||||||||
| Basic and diluted | (0.18 | ) | (0.60 | ) | (0.82 | ) | (3.53 | ) | ||||||||
| Weighted average outstanding common shares | ||||||||||||||||
| Basic and diluted | 9,612,973 | 3,328,191 | 6,961,938 | 2,156,283 |
Table 3. InMed Pharmaceuticals Inc.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (unaudited)
Expressed in U.S. Dollars
| March 31, | March 31, | |||||||
| 2024 | 2023 | |||||||
| $ | $ | |||||||
| Cash provided by (used in): | ||||||||
| Operating Activities | ||||||||
| Net loss | (5,737,879 | ) | (7,609,231 | ) | ||||
| Items not requiring cash: | ||||||||
| Amortization and depreciation | 164,833 | 148,786 | ||||||
| Share-based compensation | 98,760 | 237,675 | ||||||
| Amortization of right-of-use assets | 287,824 | 296,239 | ||||||
| Interest income on short-term investments | (1,271 | ) | (392 | ) | ||||
| Unrealized foreign exchange loss | 2,607 | 2,138 | ||||||
| Inventory write-down | 263,404 | 576,772 | ||||||
| Bad debts | - | 25,085 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Inventories | 159,000 | 584,151 | ||||||
| Prepaids and other current assets | (520,653 | ) | 102,022 | |||||
| Other non-current assets | 4,908 | 5,507 | ||||||
| Accounts receivable | 52,718 | (107,357 | ) | |||||
| Accounts payable and accrued liabilities | (425,446 | ) | (585,341 | ) | ||||
| Deferred rent | (16,171 | ) | 16,171 | |||||
| Lease obligations | (289,302 | ) | (317,490 | ) | ||||
| Total cash used in operating activities | (5,956,668 | ) | (6,625,265 | ) | ||||
| Investing Activities | ||||||||
| Payment of acquisition consideration | - | (500,000 | ) | |||||
| Sale of short-term investments | 42,513 | - | ||||||
| Purchase of short-term investments | (42,513 | ) | - | |||||
| Purchase of property and equipment | (9,293 | ) | (128198 | ) | ||||
| Total cash used in investing activities | (9,293 | ) | (628,198 | ) | ||||
| Financing Activities | ||||||||
| Proceeds from private placement | 4,654,042 | 10,680,654 | ||||||
| Total cash provided by financing activities | 4,654,042 | 10,680,654 | ||||||
| (Decrease) increase in cash and cash equivalents during the period | (1,311,919 | ) | 3,427,191 | |||||
| Cash and cash equivalents beginning of the period | 8,912,517 | 6,176,866 | ||||||
| Cash and cash equivalents end of the period | 7,600,598 | 9,604,057 | ||||||
| SUPPLEMENTARY CASH FLOW INFORMATION: | ||||||||
| Cash Paid During the Year for: | ||||||||
| Income taxes | $ | - | $ | 11,300 | ||||
| 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 | $ | 691,483 | ||||
| Recognition of Right-of-use asset and corresponding operating lease liability | $ | 968,376 | $ | - |
Pharmaceuticals is a clinical stage 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. Together with its subsidiary BayMedica, we are a global leader in the manufacturing, development and commercialization
of rare cannabinoids and proprietary cannabinoid analogs. For more information, visit www.inmedpharma.com.
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; being optimistic about the long-term growth potential in the rare
cannabinoids sector; improving margins over time; expectations that the Company's cash will be sufficient to fund its planned operating
expenses and capital expenditure requirements into the fourth quarter of calendar year 2024.
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 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,
events or developments, except as required by law.