InMed Reports First Quarter Fiscal 2026 Financial Results and Provides Business Update

Rhea-AI Summary

InMed (NASDAQ: INM) reported Q1 fiscal 2026 results for the quarter ended September 30, 2025 and provided a business update on its drug programs.

Key metrics: cash and cash equivalents $9.3M (down from $11.1M June 30, 2025), BayMedica revenue $1.12M (down 11% year-over-year), R&D $0.58M, and net loss $1.73M. Management expects cash to fund operations into Q4 calendar 2026 depending on revenues and expense timing.

Program highlights: INM-901 advanced preclinical work with a 7-month 5xFAD mouse study presented at AAIC and IND-enabling and CMC activities underway; INM-089 continues preclinical evaluation for dry AMD.

Positive

• INM-901: 7-month 5xFAD mouse study presented at AAIC showing behavioral and pathology improvements
• Company advancing IND-enabling activities and CMC for INM-901 toward clinical readiness
• Cash runway expected to fund operations into Q4 calendar 2026

Negative

• BayMedica revenue declined 11% year-over-year to $1.12M for the quarter
• Weighted average outstanding shares increased materially to 3,954,549 from 620,127, indicating dilution
• R&D spending is expected to increase substantially through fiscal 2026, pressuring cash burn

Insights

Senior Financial Analyst

Operating burn and modest commercial revenue make this a neutral quarterly update with limited near-term upside.

Sales from the BayMedica commercial unit were $1.1 million, down 11% year-over-year, while gross profit declined and net loss stayed near prior levels, showing persistent operating losses. Cash and cash equivalents fell to $9.3 million, and management states this cash supports operations into the fourth quarter of calendar year 2026, subject to revenue and expense timing.

Key dependencies include BayMedica revenue trends and the pace of planned R&D spending on INM-901; both materially affect runway. Watch quarterly cash burn, changes in guidance, and any financing or partnership announcements over the next 6–12 months.

Translational Neuroscience Expert

Preclinical data progress on INM-901 is promising but remains pre-IND; clinical impact is distant and contingent on IND-enabling results.

The program reported expanded data from a long-term 5xFAD mouse model and plans for CMC, GLP-enabling studies and a pre-IND meeting with the FDA, indicating movement toward regulatory readiness. These steps are technical milestones that de-risk development only if GLP toxicology and CMC scale meet expectations.

Monitor completion of GLP studies, CMC milestones, and scheduling of a formal pre-IND meeting with the FDA; expect meaningful program-readout milestones across the remainder of fiscal 2026 to early 2027.

Vancouver, British Columbia--(Newsfile Corp. - November 6, 2025) - InMed Pharmaceuticals Inc. (NASDAQ: INM) ("InMed" or the "Company"), a pharmaceutical drug development company focused on developing a pipeline of proprietary small-molecule drug candidates for diseases with high unmet medical needs, today reports financial results for its first quarter of fiscal year 2026, which ended September 30, 2025.

The Company's full financial statements and related MD&A for the first quarter ended September 30, 2025, are available at www.inmedpharma.com, www.sedar.com and at www.sec.gov.

Eric A. Adams, InMed Chief Executive Officer, commented, "Fiscal 2026 is shaping up to be another strong year for InMed as we advance our lead program INM-901 toward clinical readiness. INM-901 continues to demonstrate compelling data across multiple preclinical models, reinforcing its potential as a differentiated small-molecule therapy targeting Alzheimer's disease. With IND-enabling activities advancing, we are entering an important stage in translating INM-901's scientific promise into clinical evaluation."

Mr. Adams continued, "On the corporate front, the addition of two new directors further strengthens our Board's breadth of expertise and supports our continued growth and strategic execution. Additionally, the Company closed the quarter with approximately $9.3 million in cash allowing us to execute on program milestones into the fourth quarter of calendar year 2026."

Business Update - Pharmaceutical Development Programs

INM-901: Targeting multiple biological pathways associated with Alzheimer's disease

InMed's proprietary small-molecule drug candidate INM-901 continues to advance as a potential treatment for Alzheimer's disease through its multiple mechanisms of action targeting several biological pathways associated with disease progression. This quarter, management presented a scientific poster at the 2025 Alzheimer's Association International Conference (AAIC) entitled, "Therapeutic Potential of INM-901 in Mitigating Alzheimer's Disease Pathology: Insights from a Long-term 5xFAD Mouse Model Study ".

This study measured hippocampal RNA expression, inflammatory markers, immunohistochemistry and behavioral differences using a 7-month treatment duration in subjects with more advanced disease to validate and expand upon previous findings, which demonstrated improvements in cognitive function, anxiety-related behavior, and sensory responsiveness. Through the remainder of fiscal 2026, InMed plans to further develop its Alzheimer's program, advancing Chemistry, Manufacturing, and Controls ("CMC") activities and preparing for a pre-IND meeting with the Food and Drug Administration ("FDA") and GLP-enabling studies to support an IND submission.

INM-089: Neuroprotection in the treatment of dry age-related macular degeneration ("AMD")

INM-089 is a proprietary small-molecule drug candidate under investigation for the treatment of dry AMD. The Company continues to advance preclinical studies demonstrating significant functional and pathological improvements in a dry AMD disease study model.

Financial Commentary:

BayMedica commercial business generated revenues of $1.1 million for the three months ending September 30, 2025, compared to $1.3 million for the same period last year, reflecting an 11% decrease. This decrease is primarily attributed to pricing adjustments on BayMedica's products over the prior year. Cost of goods sold decreased by 7% for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. The decrease in cost of goods sold is primarily the result of the Company lowering its supply chain and manufacturing costs which has led to improved margins over time.

The Company's research and development expenses were $0.6 million for the three months ending September 30, 2025, compared with $0.7 million for the three months ending September 30, 2024. The decrease in research and development expenses was primarily due to reduced spending on external contractors and compensation. We expect research and development expenses to increase substantially through the remainder of fiscal year 2026 as the Company advances preclinical work and IND-enabling studies on INM-901.

The Company incurred general and administrative expenses of $1.5 million for the three months ended September 30, 2025 and 2024. We anticipate general and administrative expenses to remain relatively stable for the remainder of fiscal 2026.

As of September 30, 2025, the Company's cash and cash equivalents were $9.3 million, which compares to $11.1 million on June 30, 2025. The Company continues to closely monitor expenses while advancing its pharmaceutical pipeline candidates. Based on current forecasts, the Company expects its cash will be sufficient to fund its planned operating expenses and capital expenditure into the fourth quarter of calendar year 2026, depending on the level and timing of BayMedica commercial revenues, as well as the level and timing of our operating expenses.

Table 1. Consolidated Balance Sheet
Expressed in U.S. Dollars

			September 30,			June 30,
			2025			2025
			(unaudited)
ASSETS			$			$
Current
Cash and cash equivalents			9,331,077			11,075,871
Short-term investments			42,859			43,384
Accounts receivable, net			343,469			465,104
Inventories, net			890,807			961,173
Prepaids and other current assets			191,755			321,747
Total current assets			10,799,967			12,867,279
Non-Current
Property, equipment and ROU assets, net			881,549			992,199
Intangible assets, net			1,579,569			1,620,562
Other assets			100,000			100,000
Total Assets			13,361,085			15,580,040
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities			1,130,219			1,404,283
Current portion of lease obligations			424,765			435,507
Total current liabilities			1,554,984			1,839,790
Non-current
Lease obligations, net of current portion			215,478			305,755
Total Liabilities			1,770,462			2,145,545
Commitments and Contingencies (Note 10)
Shareholders' Equity
Common shares, no par value, unlimited authorized shares: 2,604,186 and 2,002,186 as of September 30, 2025 and June 30, 2025, respectively, issued and outstanding			91,806,396			91,221,174
Additional paid-in capital			38,620,449			39,322,644
Accumulated deficit			(118,964,791	)		(117,237,892	)
Accumulated other comprehensive income			128,569			128,569
Total Shareholders' Equity			11,590,623			13,434,495
Total Liabilities and Shareholders' Equity			13,361,085			15,580,040

 

Table 2. Consolidated Statements of Operations
Expressed in U.S. Dollars

				For the Three Months Ended
				September 30, 2025			September 30, 2024
				$			$
Sales				1,120,121			1,264,638
Cost of sales				716,962			771,225
Gross profit				403,159			493,413
Operating Expenses
Research and development				581,612			700,145
General and administrative				1,532,015			1,492,961
Amortization and depreciation				53,202			54,579
Foreign Exchange (Gain) Loss				56,994			(19,310	)
Total operating expenses				2,223,823			2,228,375
Other Income (Expense)
Interest and other income				93,765			57,094
Loss before income tax expense				(1,726,899	)		(1,677,868	)
Income tax expense				-			-
Net loss for the period				(1,726,899	)		(1,677,868	)
Net loss per share for the period
Basic and diluted				(0.44	)		(2.71	)
Weighted average outstanding common shares
Basic and diluted				3,954,549			620,127

 

Table 3. Consolidated Statements of Cash Flows
Expressed in U.S. Dollars

			For the Three Months Ended
			September 30, 2025			September 30, 2024
Cash provided by (used in):			$			$
Operating Activities
Net loss			(1,726,899	)		(1,677,868	)
Items not requiring cash:
Amortization and depreciation			53,202			54,579
Share-based compensation			20,205			28,964
Amortization of right-of-use assets			103,478			90,401
Unrealized foreign exchange loss			1,358			5,270
Changes in operating assets and liabilities:
Inventories			70,366			24,251
Prepaids and other currents assets			129,992			328,867
Accounts receivable			122,160			67,624
Accounts payable and accrued liabilities			(274,066	)		(642,392	)
Payments on lease obligations			(107,412	)		(106,506	)
Total cash used in operating activities			(1,607,616	)		(1,826,810	)
Investing Activities
Sale of short-term investments			20,957			21,324
Purchase of short-term investments			(20,957	)		(21,324	)
Total cash used in investing activities			-			-
Financing Activities
Proceeds from the private placement			-			1,030,063
Share issuance costs			(137,178	)		(191,824	)
Total cash provided by financing activities			(137,178	)		838,239
Decrease in cash and cash equivalents during the period			(1,744,794	)		(988,571	)
Cash and cash equivalents beginning of the period			11,075,871			6,571,610
Cash and cash equivalents end of the period			9,331,077			5,583,039
SUPPLEMENTARY CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes	$		-			-
Interest	$		-		$	-
						-
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Recognition of Right-of-use asset and corresponding operating lease	$		-		$	187,223

 

About InMed:

InMed Pharmaceuticals is a pharmaceutical drug development 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.

Investor Contact:

Colin Clancy
Vice President, Investor Relations
and Corporate Communications
T: +1.604.416.0999
E: ir@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 potential efficacy of INM-901, INM-901's ability to treat Alzheimer's, marketability and uses for INM-901; data from its INM-901 program at the Alzheimer's Association International Conference (AAIC) 2025; statements regarding InMed's belief in the potential of INM-901 as a multi-mechanism small molecule drug candidate for Alzheimer's disease; fiscal 2026 is shaping up to be another strong year for InMed advancing INM-901 toward clinical readiness; entering an important stage in translating INM-901's scientific promise into clinical evaluation; the advancement of chemistry, manufacturing, and controls (CMC) activities, the planning of GLP-enabling studies, and the preparation of an IND submission; the further development, potential efficacy, and marketability of INM-089 for dry age-related macular degeneration; expectations regarding the sufficiency of the Company's strengthened balance sheet to fund operations, advance pharmaceutical development programs, and achieve milestones into the fourth quarter of calendar year 2026; and, other business initiatives, strategies, and prospects of the Company.

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/273506

FAQ

How much cash did InMed (INM) have at September 30, 2025 and how long will it last?

InMed reported $9.3 million in cash and cash equivalents and expects this to fund operations into Q4 calendar 2026, depending on revenue and expense timing.

What did InMed report for BayMedica revenue in Q1 fiscal 2026 (INM)?

BayMedica generated $1.12 million in revenue for the quarter, an 11% decline versus the prior-year period.

What progress did InMed announce for INM-901 (INM) in November 2025?

InMed presented a 7-month 5xFAD mouse study at AAIC showing cognitive and pathology improvements and is advancing IND-enabling and CMC activities for INM-901.

Will InMed (INM) need more funding after Q4 2026?

Management said cash is expected to fund planned operations into Q4 2026, but additional funding may be required depending on BayMedica revenues and the timing of increased R&D spend.

How did InMed's net loss and R&D expense compare in Q1 fiscal 2026 (INM)?

Net loss was $1.73 million and research and development expense was $0.58 million for the quarter.