InMed Reports First Quarter Fiscal 2027 Financial Results and Provides Corporate Update

InMed expects its cash to fund planned spending into mid-November while it pursues a merger expected to close in the fourth quarter.

Rhea-AI Summary

InMed Pharmaceuticals (NASDAQ: INM) reported a $2,330,778 net loss for its fiscal first quarter ended September 30, 2026. The loss widened from $1,726,899 a year earlier, while basic and diluted loss per share narrowed to $0.42 from $0.44. Cash fell to $1,094,488 from $2,194,413 at June 30. InMed expects available cash to fund planned spending into mid-November, depending on expenditure timing and merger completion.

InMed expects its proposed Mentari Therapeutics merger to close in the fourth quarter of 2026, subject to required shareholder approvals and other remaining conditions. Mentari announced private placements with approximately US$490 million in expected gross proceeds. Shareholders meet November 4 to consider the transaction. Nasdaq accepted InMed's compliance plan, granting until March 15, 2027, to restore minimum shareholders' equity; equity was negative $1,199,396 at September 30.

12 points · 1 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 13 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Mentari's transaction-related private placements total approximately US$490 million in expected aggregate gross proceeds. 55× market cap
• Moderate pointOperating cash use decreased to $1,142,342 from $1,930,803 in the year-earlier quarter.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Nasdaq compliance plan accepted, with until March 15, 2027, to regain minimum-equity compliance.
• Minor point. Forward-looking: it has not happened yet and may not happen.Transaction financing is expected to support operations into 2029, including both lead programs' Phase 2a readouts.
• Minor point. Forward-looking: it has not happened yet and may not happen.Proposed contingent value rights would let eligible InMed shareholders participate in potential legacy-asset monetization proceeds.

7 minor points

• Minor pointINM-901 pre-IND meeting completed with FDA alignment on next development steps for Alzheimer's disease.
• Minor point. Forward-looking: it has not happened yet and may not happen.Legacy programs INM-901, INM-089 and INM-755 remain under consideration for divestiture, licensing or other opportunities.
• Minor pointResearch and development expenses fell to $206,015 from $575,458 in the year-earlier quarter.
• Minor pointBasic and diluted loss per share narrowed to $0.42 from $0.44 in the year-earlier quarter.
• Minor pointWarrant exercises provided $40,000 in financing proceeds during the quarter.
• Minor pointAmortization and depreciation expense fell to $168 from $52,603 in the year-earlier quarter.
• Minor pointForeign exchange shifted to a $1,488 gain from a $56,994 loss in the year-earlier quarter.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.Cash runway extends only into mid-November, depending on expenditures and timing of the proposed merger.
• Moderate pointCash and cash equivalents fell to $1,094,488 at September 30 from $2,194,413 at June 30, 2026.
• Moderate pointShareholders' equity fell to negative $1,199,396 from positive $1,075,007 at June 30, 2026.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Nasdaq minimum-equity noncompliance remains unresolved; InMed expects merger completion and associated pre-closing financing to restore compliance.
• Moderate pointProposed merger remains subject to required shareholder approvals; closing is expected in fourth-quarter 2026.
• Moderate pointNet loss widened to $2,330,778 from $1,726,899 in the year-earlier quarter.
• Moderate pointAccounts payable and accrued liabilities rose to $2,493,903 from $1,843,327 at June 30, 2026.

6 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Combined company's proposed MTRI Nasdaq Capital Market trading remains subject to Nasdaq approval.
• Minor pointContinuing-operations net loss widened to $1,995,012 from $1,830,348 in the year-earlier quarter.
• Minor pointDiscontinued operations recorded a $335,766 loss versus $103,449 income in the year-earlier quarter.
• Minor pointGeneral and administrative expenses rose to $1,804,625 from $1,239,058 in the year-earlier quarter.
• Minor pointInterest and other income fell to $14,308 from $93,765 in the year-earlier quarter.
• Minor pointCommon shares outstanding increased to 5,493,735 from 5,339,436 at June 30, 2026, diluting existing holders.

News Explained

The proposed merger’s CVR structure is intended to let eligible InMed shareholders participate in potential proceeds from future monetization of InMed’s legacy assets, but neither an asset transaction nor any CVR payment is assured.

Key Figures

Expected aggregate gross proceeds: Approximately US$490 million Expected financing runway: Into 2029 Lead-program readouts: 2 Phase 2a readouts +5 more

Expected aggregate gross proceeds

Approximately US$490 million

Private placements in connection with the proposed transaction

Expected financing runway

Into 2029

Expected to support operations, including through lead-program readouts

Lead-program readouts

2 Phase 2a readouts

Both of Mentari's lead PACAP-targeted programs

Shareholders' equity vs. Nasdaq minimum

$1,075,007 vs. $2.5 million

Equity reported for fiscal 2026 was below the listing requirement

Compliance deadline

March 15, 2027

Deadline to regain compliance with Nasdaq's minimum shareholders' equity requirement

Cash and cash equivalents

$1,094,488

September 30, 2026

Net loss

$2,330,778

Three months ended September 30, 2026

Expected cash runway

Into mid-November

Based on current forecasts and subject to spending and merger timing

Previous Earnings Reports

1 past event · Latest: Nov 06

Same Type 1 event

1. Nov 06

   Q1 earnings

   24h Move

   -6.2%

   Reported Q1 FY26 net loss of $1.73 million and cash of $9.3 million.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

md&a, contingent value rights, pre-ind, form s-4

4 terms

md&a financial

"full financial statements and related MD&A for the quarter"

Management’s Discussion and Analysis (MD&A) is a section of a company’s financial filing where executives explain recent results, the reasons behind changes, risks faced, and expectations for the future in plain language alongside the numbers. Investors use it like an owner’s narrative to understand the story behind the raw financial data — what drove performance, potential pitfalls, and management’s plans — helping judge whether the company’s numbers are likely to improve or worsen.

contingent value rights financial

"proposed contingent value rights ("CVR") structure"

Contingent value rights are special financial instruments that give their holder the potential to receive additional payments if certain future events or conditions happen, such as the achievement of specific business milestones. They are like a promise of extra rewards that depend on how well a project or company performs later on. Investors care about them because they offer a chance for extra gains but also carry uncertainty, as the extra payments are not guaranteed.

pre-ind regulatory

"completed a pre-IND meeting with the FDA"

"Pre-ind" is short for "pre-indication" and refers to the period before a formal announcement or official signal that a significant change or event is about to happen, such as a company preparing to release important news. For investors, it can signal a time of increased activity or uncertainty, as market participants try to interpret hints and anticipate future developments. Recognizing pre-ind conditions helps investors make more informed decisions ahead of major shifts.

form s-4 regulatory

"filed with the SEC a registration statement on Form S-4"

A Form S-4 is a legal document that companies file with the government to announce and explain a major business move, such as a merger or acquisition. It provides detailed information to help investors understand how the deal might affect the company's value and future prospects, similar to a detailed blueprint that clarifies the impact of a significant change.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Vancouver, British Columbia--(Newsfile Corp. - November 3, 2026) - 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 reported financial results for its first quarter of fiscal 2027, ended September 30, 2026, and provided a corporate update.

The Company's full financial statements and related MD&A for the quarter ended September 30, 2026, are available at www.inmedpharma.com, www.sedarplus.ca and www.sec.gov.

"We are approaching an important milestone in our proposed merger with Mentari Therapeutics, with our annual general and special meeting scheduled for November 4, 2026," commented Eric A. Adams, InMed President and CEO. "Our focus remains on completing the transaction, which we believe provides shareholders with an opportunity to participate in the development of Mentari's migraine prevention pipeline. In parallel, we continue to pursue opportunities to realize value from InMed's legacy pharmaceutical assets for our shareholders through the proposed contingent value rights structure."

Corporate Update

Proposed Merger with Mentari Therapeutics
InMed continues to work toward completing its proposed merger with Mentari Therapeutics, Inc. ("Mentari"), a privately held biotechnology company developing therapies for migraine prevention. Following completion of the transaction, the combined company is expected to operate under the Mentari Therapeutics name and seek to trade on the Nasdaq Capital Market under the ticker symbol "MTRI," subject to Nasdaq approval.

Mentari has announced private placements totaling approximately US$490 million in expected aggregate gross proceeds in connection with the transaction. This financing is expected to support operations into 2029, including through Phase 2a readouts for both of Mentari's lead PACAP-targeted programs.

The proposed merger is expected to close in the fourth quarter of calendar 2026, subject to the satisfaction or waiver of the remaining closing conditions, including the required shareholder approvals.

Annual General and Special Meeting - November 4, 2026
InMed's annual general and special meeting of shareholders is scheduled for November 4, 2026, at 12:00 p.m. Eastern Time. Shareholders will be asked to consider proposals necessary to complete the proposed merger and related transactions, together with customary annual meeting business.

The definitive proxy statement/prospectus and management information circular provides details of the transaction, the proposals to be considered and instructions for voting. Shareholders are encouraged to review these materials carefully and submit their votes before the applicable voting deadline. InMed's Board of Directors recommends that shareholders vote "FOR" the proposals described in the meeting materials.

Nasdaq Compliance Update
On September 16, 2026, InMed received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that its shareholders' equity of $1,075,007, as reported in its Annual Report on Form 10-K for the fiscal year ended June 30, 2026, was below the $2.5 million minimum required under Nasdaq Listing Rule 5550(b)(1). The notice had no immediate effect on the listing of the Company's common shares, and Nasdaq provided the Company with 45 calendar days to submit a plan to regain compliance.

On October 30, 2026, the Company submitted its compliance plan and Nasdaq indicated that it had accepted the compliance plan, and determined that InMed has until March 15, 2027, to regain compliance with Nasdaq Listing Rule 5550(b)(1). The Company expects completion of the proposed merger with Mentari and the associated pre-closing financing to enable it to regain compliance with the minimum shareholders' equity requirement. There can be no assurance that Nasdaq will accept the Company's plan or that the Company will regain compliance within any granted extension period.

InMed Pharmaceutical Assets
During the quarter, InMed completed a pre-IND meeting with the FDA and reached alignment on the next steps in the development of INM-901 in the treatment of Alzheimer's disease.

InMed continues to pursue potential divestiture, licensing and other strategic opportunities for its legacy pharmaceutical programs: INM-901 for Alzheimer's disease, INM-089 for dry age-related macular degeneration and INM-755 for dermatological indications.

The proposed merger transaction includes a contingent value rights ("CVR") structure intended to allow eligible InMed shareholders to participate in potential proceeds from the future monetization of these assets, subject to the terms of the CVR agreement. There can be no assurance that an asset transaction will be completed or that any payments will be made under the CVRs.

Financial Commentary
The Company's research and development expenses were $0.2 million for the three months ended September 30, 2026, compared with $0.6 million for the three months ended September 30, 2025. The decrease is primarily due to a reduction in operating activity resulting from the pending Merger.

The Company incurred general and administrative expenses of $1.8 million for the three months ended September 30, 2026, compared with $1.2 million for the same period in 2025.

As of September 30, 2026, the Company's cash and cash equivalents were $1.0 million, compared with $2.2 million as of June 30, 2026. The Company continues to closely monitor expenses while working toward completing the proposed merger with Mentari and pursuing strategic opportunities for its legacy pharmaceutical assets.

Based on current forecasts, the Company expects its available cash to fund planned operating expenses and capital expenditures into mid-November, depending on the level and timing of expenditures and the timing of completion of the proposed merger.

InMed Pharmaceuticals Inc. CONDENSED CONSOLIDATED BALANCE SHEETS Expressed in U.S. Dollars
		September 30,			June 30,
		2026			2026
		Unaudited
		$			$
ASSETS
Current
Cash and cash equivalents		1,094,488			2,194,413
Short-term investments		40,331			39,670
Prepaids and other current assets		99,682			241,296
Held for sale equipment		17,583			20,000
Current assets of discontinued operations		11,355			181,327
Total current assets		1,263,439			2,676,706
Non-Current
Property, equipment and ROU assets, net		-			221,037
Other assets		42,423			132,324
Total Assets		1,305,862			3,030,067
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities		2,493,903			1,843,327
Current liabilities of discontinued operations		11,355			111,733
Total Liabilities		2,505,258			1,955,060
Commitments and Contingencies (Note 8)
Shareholders' Equity
Common shares, no par value, unlimited authorized shares: 5,493,735 and 5,339,436 as of September 30, 2026 and June 30, 2026, respectively, issued and outstanding		94,408,309			94,282,698
Additional paid-in capital		36,824,910			36,894,146
Accumulated deficit		(132,561,184	)		(130,230,406	)
Accumulated other comprehensive income		128,569			128,569
Total Shareholders' Equity		(1,199,396	)		1,075,007
Total Liabilities and Shareholders' Equity		1,305,862			3,030,067

 

InMed Pharmaceuticals Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Expressed in U.S. Dollars
		For the Three Months Ended
		September 30,
		2026			2025
		$			$
Operating Expenses
Research and development		206,015			575,458
General and administrative		1,804,625			1,239,058
Amortization and depreciation		168			52,603
Foreign exchange loss		(1,488	)		56,994
Total operating expenses		2,009,320			1,924,113
Other Income (Expense)
Interest and other income		14,308			93,765
Loss from continuing operations before taxes		(1,995,012	)		(1,830,348	)
Income tax expense		-			-
Net loss from continuing operations		(1,995,012	)		(1,830,348	)
Discontinued operations:
Income (Loss) from discontinued operations		(335,766	)		103,449
Net Loss		(2,330,778	)		(1,726,899	)
Net loss per share for the year
Basic and diluted:
Continuing operations		(0.36	)		(0.46	)
Discontinued operations		(0.06	)		0.03
Net loss per share attributable to Common Stockholders - basic and diluted		(0.42	)		(0.44	)
Weighted average outstanding common shares
Basic and diluted		5,469,448			3,954,549

 

InMed Pharmaceuticals Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Expressed in U.S. Dollars
		For the Three Months
		Ended September 30,
		2026			2025
		$			$
Cash provided by (used in):
Operating Activities
Net loss		(2,330,778	)		(1,726,899	)
Items not requiring cash:
Amortization and depreciation		168			53,202
Share-based compensation		16,375			20,205
Amortization of right-of-use assets		220,869			103,478
Interest income received on short-term		(661	)		-
Unrealized foreign exchange loss		-			1,883
Changes in operating assets and liabilities:
Prepaids and other currents assets		141,614			131,875
Other non-current assets		89,901			-
Accounts payable and accrued liabilities		650,577			(389,881	)
Lease obligations		-			(107,412	)
Operating cash flow used by discontinued operations		69,593			(17,254	)
Total cash used in operating activities		(1,142,342	)		(1,930,803	)
Investing Activities
Sale of held for sale equipment		2,417			-
Sale of short-term investments		-			20,957
Purchase of short-term investments		-			(20,957	)
Total cash provided by investing activities		2,417			-
Financing Activities
Proceeds from the exercise of warrants		40,000			-
Share issuance costs		-			(137,178	)
Total cash provided by (used in) financing activities		40,000			(137,178	)
Decrease in cash and cash equivalents during the period		(1,099,925	)		(2,067,981	)
Cash and cash equivalents beginning of the period		2,194,413			10,743,430
Cash and cash equivalents end of the period		1,094,488			8,675,449
SUPPLEMENTARY CASH FLOW INFORMATION:
Cash paid during the period for:		-			-
Income taxes	$	-		$	-
Interest	$	-		$	-

 

About InMed

InMed 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.

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 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 regarding the proposed merger with Mentari, including the anticipated timing and completion of the merger and other contemplated transactions; the expected aggregate proceeds from the pre-closing financing; the anticipated outcome of Nasdaq's review of the Company's compliance plan and the Company's ability to regain compliance with Nasdaq's minimum shareholders' equity requirement, including through completion of the proposed merger with Mentari and the associated pre-closing financing; the expected cash runway of the company; the potential future monetization of INM-901,INM-089 and INM-755; the Company's efforts to identify strategic opportunities for INM-901, INM-089 and INM-755 and the expected nature, focus and operations of the company following the merger.

With respect to the forward-looking information contained in this news release, InMed has made numerous assumptions regarding, among other things: the ability to obtain all necessary regulatory approvals on a timely basis, or at all; the satisfaction or waiver of the conditions to the completion of the proposed merger with Mentari, including the receipt of required shareholder and stockholder approvals; and continued economic and market stability. While InMed considers these assumptions to be reasonable, these assumptions are inherently subject to significant business, economic, competitive, market and social uncertainties and contingencies.

Additionally, there are known and unknown risk factors that 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, as may be updated from time to time by InMed's Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission available at 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.

No Offer or Solicitation

This communication is for informational purposes only and does not constitute an offer to sell, or the solicitation of an offer to buy, any securities, or the solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Without limiting the foregoing, this communication does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in connection with any private placement or other financing by Mentari or InMed. Any such securities have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act or an applicable exemption therefrom.

Important Additional Information About the Merger and Where to Find It

In connection with the proposed merger, InMed has filed with the SEC a registration statement on Form S-4 that includes a preliminary proxy statement/prospectus of InMed and a management information circular and will file other relevant documents with the SEC and applicable Canadian securities regulators. The Form S-4 has not yet become effective. After the Form S-4 is declared effective, InMed will mail a definitive proxy statement/prospectus and management information circular to its shareholders and to Mentari's stockholders. INVESTORS AND SECURITYHOLDERS OF INMED AND MENTARI ARE URGED TO READ THE FORM S-4, THE PROXY STATEMENT/PROSPECTUS AND MANAGEMENT INFORMATION CIRCULAR (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS) AND ALL OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC AND CANADIAN SECURITIES REGULATORS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT INMED, MENTARI, THE MERGER AND RELATED MATTERS. Investors and securityholders may obtain free copies of these documents (when available) through the SEC's website at www.sec.gov, on SEDAR+ at www.sedarplus.ca, or from InMed at inmedpharma.com/investors.

Participants in the Solicitation

InMed, Mentari and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from InMed's shareholders and Mentari's stockholders in connection with the proposed merger. Information regarding InMed's directors and executive officers and a description of their direct and indirect interests, by security holdings or otherwise, is set forth in InMed's most recent annual report on Form 10-K and its other filings with the SEC and on SEDAR+. Additional information regarding the participants and their interests is or will be contained in the proxy statement/prospectus and management information circular and other relevant materials filed or to be filed with the SEC and Canadian securities regulators. These documents may be obtained free of charge as described above.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/322203

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When is InMed's proposed merger with Mentari expected to close?

InMed expects the proposed merger to close in the fourth quarter of calendar 2026, subject to satisfaction or waiver of remaining closing conditions, including required shareholder approvals. The combined company is expected to operate under the Mentari Therapeutics name and seek Nasdaq Capital Market trading under MTRI, subject to Nasdaq approval.

How long does InMed expect its available cash to last?

InMed expects available cash to fund planned operating expenses and capital expenditures into mid-November, depending on the level and timing of expenditures and completion of the proposed merger. Cash and cash equivalents totaled $1,094,488 at September 30, 2026.

What would InMed shareholders receive through the proposed merger's contingent value rights?

The proposed contingent value rights would allow eligible InMed shareholders to participate in potential proceeds from future monetization of legacy pharmaceutical assets, subject to the CVR agreement. The programs are INM-901 for Alzheimer's disease, INM-089 for dry age-related macular degeneration and INM-755 for dermatological indications. Asset transactions and payments are not assured.

How can InMed shareholders vote on the proposed Mentari merger?

Shareholders can follow voting instructions in the definitive proxy statement/prospectus and management information circular and submit votes before the applicable deadline. The annual general and special meeting is scheduled for November 4, 2026, at 12:00 p.m. Eastern Time. InMed's board recommends voting FOR the proposals described in the meeting materials.

Why did InMed's research and development expenses decline?

InMed attributes the decrease primarily to reduced operating activity resulting from the pending merger. Research and development expenses were $206,015 for the three months ended September 30, 2026, compared with $575,458 for the same period in 2025.