InMed Pharmaceuticals Inc.
For the period ended Sep 30, 2026. Filed Nov 3, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 3, 2026
INM$15.56+17.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001213900-26-052920
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-03.
0001213900-26-115083
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 87 previous paragraphs and 80 current paragraphs.
34 unchanged; 24 reworded; 22 added; 29 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 48 previous and 33 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
On March 4, 2026, our board of directors ratified, confirmed and approved the decision of the board members of BayMedica, LLC (“BayMedica”) to wind down and exit BayMedica's commercial operations business segment, which constituted our only revenue-generating commercial operations. As of September 30, 2026, BayMedica had wound down all of its operating activities. Following the wind down, our remaining activities have consisted of preclinical development of our Product Candidates, and we do not currently intend to devote significant resources to advancing them. If the Merger (as defined below) is completed, the combined company will seek to out-license or sell the Product Candidates and related intellectual property, and holders of Common Shares (as defined below) as of immediately prior to the First Effective Time (as defined below) will receive contingent value rights entitling them to the net proceeds, if any, of any such transaction. See “Recent Developments” below.
Current report
Merger Agreement with Mentari Therapeutics, Inc.
Current report
As previously reported, on May 19, 2026, InMed, Indigo Merger Sub Corp., a Delaware corporation and a wholly owned subsidiary of the Company (the “First Merger Sub”), Indigo Merger Sub II, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company (the “Second Merger Sub” and, together with First Merger Sub, the “Merger Subs”), and Mentari Therapeutics, Inc., a Delaware corporation (“Mentari”), entered into an Agreement and Plan of Merger and Reorganization, which agreement was subsequently amended on July 6, 2026 (as amended, the “Merger Agreement”), pursuant to which, among other matters and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, (i) the First Merger Sub will merge with and into Mentari, with Mentari surviving the merger as a wholly owned subsidiary of the Company (the “First Merger”), and (ii) immediately following the First Merger and as part of the same overall transaction as the First Merger, Mentari will merge with and into the Second Merger Sub, with the Second Merger Sub surviving such merger (the “Second Merger” and, together with the First Merger, the “Merger”). Subject to the terms and conditions of the Merger Agreement, at the effective time of the First Merger (the “First Effective Time”), each share of Mentari capital stock outstanding immediately prior to the First Effective Time (including shares issued in the pre-closing financing and excluding treasury shares and dissenting shares) will be converted into the right to receive a number of the Company’s common shares (the “Common Shares”) equal to the exchange ratio determined under the Merger Agreement (the “Exchange Ratio”); provided that, in the event the issuance of Common Shares to any holder would exceed such holder’s applicable beneficial ownership limitation, the Company may issue pre-funded warrants in lieu of Common Shares in excess of that limitation. In addition, each outstanding share of Mentari’s Series Seed Preferred Stock will be converted into the right to receive a number of the Company’s Non-Voting Convertible Preferred Shares (the “Convertible Preferred Shares”) equal to the Exchange Ratio divided by 1,000. Outstanding Mentari options, restricted stock units and warrants will be treated in accordance with the Merger Agreement.
Current report
Prior to the closing of the Merger, the Company expects to effect a consolidation of its Common Shares, change its name to “Mentari Therapeutics, Inc.” and continue from the Province of British Columbia to the State of Nevada.
Current report
The Exchange Ratio is derived from the valuation framework in the Merger Agreement, which ascribes a fixed equity value of $125.0 million to Mentari (plus certain proceeds of Mentari's pre-closing financing) and a valuation to the Company that is adjusted based on the Company's net cash at closing. Based on the capitalization of the Company and Mentari as of September 25, 2026 and assuming the Company's net cash at closing of approximately $(4.4) million, pre-Merger Mentari securityholders (including investors in Mentari's pre-closing financing) are expected to own approximately 99.03%, and pre-Merger Company securityholders approximately 0.97%, of the combined company on a fully-diluted basis. These percentages are subject to adjustment based on the Company's net cash at closing.
Current report
On July 22, 2026, the securities purchase agreement for Mentari's pre-closing financing was amended to increase the aggregate commitment to approximately $490.0 million (including $50.0 million of proceeds previously received by Mentari from the issuance of convertible notes and accrued interest thereon).
Current report
In connection with the Merger, the Company will seek the approval of its shareholders for the matters required by the Merger Agreement, including, without limitation, approval of the issuance of Common Shares representing more than 20% of the Company’s outstanding Common Shares and the resulting change of control pursuant to Nasdaq rules, a potential reduction of capital in connection with distributions contemplated by the Merger Agreement, and approval of the continuation of the Company from the Province of British Columbia to Nevada. The Merger is expected to close in the fourth quarter of calendar 2026, subject to the satisfaction or waiver of the closing conditions set out in the Merger Agreement.
Current report
Nasdaq Minimum Shareholders’ Equity Notice
Current report
On September 18, 2026, InMed announced that it had received a written letter (the “Letter”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (for purposes of this section, “Nasdaq”) notifying InMed that its shareholders' equity of $1,075,007, as reported in its 2026 Annual Report, was below the minimum shareholders' equity of $2,500,000 required for continued listing on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(b)(1). The decline in InMed's shareholders' equity is attributable largely to transaction-related expenses accrued in connection with the pending Merger, costs associated with the wind down of BayMedica, increased general and administrative expenses, impairment charges related to InMed's intangible assets, and continued operating losses. The Letter has no immediate impact on the listing of the Common Shares, which continue to trade on The Nasdaq Capital Market under the symbol “INM”, subject to InMed's continued compliance with the other listing requirements of The Nasdaq Capital Market.
Current report
Nasdaq provided InMed with 45 calendar days to submit a plan to regain compliance with the minimum shareholders' equity requirement. If InMed's plan is accepted, Nasdaq may grant an extension of up to 180 calendar days from the date of the Letter to evidence compliance. If InMed does not evidence compliance within the relevant period, Nasdaq may notify InMed that the Common Shares are subject to delisting, in which case InMed may appeal such determination to a Nasdaq Hearings Panel.
Current report
On October 30, 2026, InMed submitted its compliance plan. If the plan is accepted by Nasdaq, the Company can be granted up to 180 calendar days from September 16, 2026 (or until March 15, 2027) to evidence compliance with Nasdaq Listing Rule 5550(b)(1).
Current report
As a result of Mentari's pre-closing financing, the combined company is expected to receive aggregate gross proceeds of approximately $490.0 million (including $50.0 million of proceeds previously received by Mentari from the issuance of convertible notes and accrued interest on such notes). Accordingly, InMed expects that the closing of the Merger will result in InMed regaining compliance with the minimum shareholders' equity requirement. However, there can be no assurance that InMed's plan will be accepted by Nasdaq, that the Merger will be completed on the anticipated timeline or at all, or that InMed will regain compliance within the required timeframe. InMed intends to take all reasonable measures available to regain compliance and remain listed on Nasdaq, including continuing to pursue the completion of the Merger.
Current report
On October 2, 2026, Pashman Stein Walder Hayden P.C. was engaged by BayMedica in connection with a potential assignment for the benefit of its creditors proceeding under the laws of the State of Delaware (the “ABC”) as a means of completing the wind down of substantially all of BayMedica’s commercial operations. In connection with the ABC, BayMedica expects to assign all or substantially all of its remaining assets to an assignee that would be responsible for liquidating those assets and distributing the net proceeds to BayMedica's creditors in accordance with applicable law. Although the Company is BayMedica’s largest secured creditor, the Company does not currently expect to receive any proceeds from the ABC. The Company has at all times held an indirect beneficial interest in BayMedica through InMed Pharmaceuticals Ltd., a Delaware corporation and wholly-owned direct subsidiary of the Company, and the Company is not a guarantor of BayMedica's obligations. The timing, costs and outcome of the ABC are uncertain, and there can be no assurance as to (i) whether or when the ABC will be completed, (ii) the amounts, if any, that will be available to BayMedica's creditors, or (iii) the effects of the ABC on the Company.
Current report
Economic and Trade Policy Uncertainty
Current report
We continue to monitor the potential impact of evolving trade policies, including the threat of additional tariffs imposed by the U.S. and other jurisdictions. While no specific tariffs have been implemented that directly and materially affect our operations, the potential for future changes in cross-border trade arrangements and import/export duties contributes to broader economic uncertainty and could impact the counterparties with whom we commercially engage. As of the date of this Quarterly Report, management has not identified any material and adverse effects on our financial position, results of operations, or estimates related to credit losses or asset impairments as a result of the implementation of such tariffs and trade policies; however, the ultimate outcome and impact of such trade policies are not fully ascertainable as of the date hereof. See “Risk Factors—The threat or actual adoption of tariffs, retaliatory tariffs and duties, trade barriers and restrictions, and related international trade conflicts, including by the United States, Canada or other jurisdictions, could materially impact the macroeconomic framework in which we operate.”
Current report
Research and development activities account for a significant portion of our operating expenses. In the event that the Merger is not consummated and subject to our ability to attract sufficient funding to continue operations, we expect our research and development expenses to increase significantly in future periods as we continue to implement our business strategy, which includes advancing our drug candidates and our manufacturing technologies through the extensive preclinical testing and into clinical development, expanding our research and development efforts, including hiring additional personnel to support our research and development efforts, ultimately seeking regulatory approvals for our drug candidates that successfully complete clinical trials, and further developing selected R&D and commercial activities.
Current report
General and Administrative Expenses
Current report
Loss from discontinued operations
Current report
We have one operating and reportable segment based on the management approach which designates the internal reporting used by the Chief Operating Decision Maker (“CODM”), which is our Chief Executive Officer and the senior management team, for making decisions and assessing performance as the source of our reportable segment. We have determined our reportable segment to be InMed Pharmaceuticals (“InMed Pharma”) based on the information used by the CODM.
Current report
Research and development expenses decreased by $0.4 million, or 64%, for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. The decrease in research and development expenses is primarily due to a reduction in operating activity resulting from the pending Merger.
Current report
General and Administrative Expenses
Current report
Loss from discontinued operations
Removed paragraphs (29)
Previous report
NASDAQ Delisting Notice
Previous report
As previously reported, on March 27, 2026, we received a written notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC, or Nasdaq, notifying us that the closing bid price of our common shares over a period of 30 consecutive trading days was below the minimum $1.00 per share requirement for continued listing on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2), or the Minimum Bid Price Rule, during the February 11, 2026 to March 26, 2026 period.
Previous report
In accordance with applicable Nasdaq procedures, we have a period of 180 calendar days following the receipt of the written notice mentioned above to cure the deficiency and regain compliance. The notice has no immediate impact on the listing of our common shares, which will continue to trade on The Nasdaq Capital Market subject to our continued compliance with the other listing requirements of The Nasdaq Capital Market. Our common shares will continue to trade under the symbol “INM”. We intend to monitor the closing share price for our common shares and explore available options to regain compliance.
Previous report
In the event we do not evidence compliance with the Minimum Bid Price Rule during the 180-day grace period, we may be eligible for an additional 180 calendar day grace period. To qualify, we will be required to meet the continued listing requirement for market value of publicly held shares and all other listing standards for The Nasdaq Capital Market, with the exception of the Minimum Bid Price Rule, and will need to provide written notice of our intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary, to Nasdaq. If it appears to the staff of Nasdaq that we will not be able to cure the deficiency, or if we are otherwise not eligible, we will not be entitled to an additional 180 calendar days grace period and Nasdaq will provide notice to us that our securities will be subject to delisting. If we do not regain compliance within the allotted compliance period(s), including any extensions that may be granted by Nasdaq, it is expected that Nasdaq would notify us that our common shares are subject to delisting. If we are notified by Nasdaq that our securities are subject to delisting, we may appeal such determination to a Nasdaq Hearings Panel, or the Panel, but our securities would be automatically suspended from trading on The Nasdaq Capital Market pending the completion of the appeal process. There can be no assurance that any such appeal would be successful or that we would be able to evidence compliance with the terms of any extension that may be granted by the Panel.
Previous report
Delisting from The Nasdaq Capital Market could materially and adversely affect our ability to raise additional financing through the public or private sale of equity securities, would significantly affect the ability of investors to trade our securities and would negatively affect the value and liquidity of our securities, including our common shares. The actual or threatened delisting of our securities could also have other material and adverse consequences, including the potential loss of confidence by employees and other stakeholders, the loss of institutional investor interest and fewer business development opportunities, limited availability of market quotations for our securities, reduced liquidity with respect to our securities, a determination that our common shares is “penny stock,” which will require brokers trading in our common shares to adhere to more stringent rules, possibly resulting in a reduced level of trading activity in the secondary trading market for our common shares, and limited amount of news and analyst coverage of us. To the extent that our common shares became eligible to trade on the OTC Bulletin Board, another over-the-counter quotation system, or on the pink sheets, an investor may find it more difficult to dispose of their common shares or obtain accurate quotations as to the market value of our common shares.
Previous report
In connection with the wind down of commercial operations, BayMedica is expected to incur severance and other employee-related costs of approximately $550,000 and expects to incur additional related expenditures of approximately $120,000 through the end of the fiscal year. These expenditures are expected to be reduced by the profits from the sale of BayMedica’s products prior to the completion of operational wind down.
Previous report
The estimates of the charges and costs that BayMedica expects to incur, and the timing thereof, as well as its revenue expectations, are subject to a number of assumptions and actual results may differ materially from those described above. In addition, BayMedica may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur as a result of or in connection with the wind down of its commercial operations.
Previous report
Pharmaceutical Program Updates
Previous report
In March 2026, we provided a pharmaceutical development outlook for 2026.
Previous report
2026 Development Priorities for INM-901 included:
Previous report
Development priorities for INM-089 included:
Previous report
In March 2026, we announced new preclinical data demonstrating the effects of INM-901 in reducing neuroinflammation in 3D human brain organoid models of Alzheimer’s disease.
Previous report
These studies, conducted in collaboration with Stem Pharm, Inc. (“Stem Pharm”) using their proprietary platform of human neuro-immune organoids, represent a key step in translating prior animal model results for INM-901 into a human-relevant system, helping to de-risk the INM-901 program ahead of a first-in-human clinical trial.
Previous report
Thein vitro human organoid models represent some of the closest approximations to human brain tissue currently available, incorporating a complex cellular environment relevant to neurodegenerative disease. The organoids are composed of neurons, astrocytes, vascular cells and feature microglia, the brain’s resident immune cells, and can be used to bridge the gap between traditional animal models and human clinical trials.
Previous report
INM-901 was evaluated in two distinct human 3D organoid models: a general model of neuroinflammation induced with lipopolysaccharide (“LPS”) and interferon-gamma (“IFN-γ”); and, Stem Pharm’s proprietary neuroinflammation Alzheimer’s disease model with specific features observed in Alzheimer’s disease patients.
Previous report
Key Observations:
Previous report
The consistency of INM-901’s anti-inflammatory effects acrossin vivo animal models,ex vivo systems and now human 3D brain organoids provide increasing confidence in the compound’s potential to translate into clinical benefit in humans with neuroinflammatory conditions.
Previous report
Amortization and Depreciation
Previous report
Intangible assets are comprised of intellectual property that we acquired in 2014 and 2015 and trade secrets, product formulation knowledge, and patents that we acquired in October 2021. The acquired intellectual property and patents are amortized on a straight-line basis based on their estimated useful lives. Equipment and leasehold improvements are depreciated using the straight-line method based on their estimated useful lives.
Previous report
Research and development expenses increased by $0.6 million, or 141%, for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. The increase in research and development expenses was primarily due to higher external contractor and research supply costs.
Previous report
Comparison of the Nine Months Ended March 31, 2026 and 2025
Previous report
General and administrative expenses increased by $0.1 million in our Pharma segment, or 4%, for the nine months ended March 31, 2026, as compared to the nine months ended March 31, 2025. The increase is primarily due to higher legal expenses and severance expenses, offset by a decrease primarily in patent fees, and investor relations fees.
Previous report
Interest and Other Income
Previous report
Interest and other income increased by $0.1 million in our Pharma segment, or 108% for the nine months ended March 31, 2026, as compared to the nine months ended March 31, 2025. The increase primarily results from the increase in our average cash on hand during the current year.
Previous report
Finance Expense
Previous report
Finance expenses decreased by $0.4 million in our Pharma segment, or 100% for the nine months ended March 31, 2026, as compared to the nine months ended March 31, 2025. The decrease relates to the fees incurred pursuant to the SEPA in December 2024.
Previous report
Loss from discontinued operations was $0.2 million for the three months ended March 31, 2026, compared to income of $0.5 million for the nine months ended March 31, 2025. The decrease is primarily due to lower gross profit and higher general and administrative expenses.
Previous report
Investing Activities
Previous report
During the nine months ended March 31, 2026 and 2025, cash used in investing activities was $nil, respectively.
Reworded paragraphs (24)
Previous wording
We are a pharmaceutical drug development company with a pipeline of proprietary small molecule drug candidates that are preferential signaling ligands of the endogenous CB1 and CB2 receptors as well as other receptor targets linked to human disease. CB1 and CB2 receptors are each part of the endocannabinoid system that is found throughout the human body and is responsible for many homeostatic functions. CB1 receptors are primarily located in the brain and central nervous system, while CB2 receptors are involved in modulating neuroinflammation and immune responses. Our research efforts target the treatment of diseases with high unmet medical needs. Together with our wholly owned subsidiary, BayMedica, LLC, or BayMedica, we also have significant know-how in developing proprietary manufacturing approaches to produce and sell bulk rare cannabinoids as ingredients for various market sectors, or Products
Current wording
We are a pharmaceutical drug development company with a pipeline of proprietary small molecule drug candidates that are preferential signaling ligands of the endogenous CB1 and CB2 receptors as well as other receptor targets linked to human disease. CB1 and CB2 receptors are each part of the endocannabinoid system that is found throughout the human body and is responsible for many homeostatic functions. CB1 receptors are primarily located in the brain and central nervous system, while CB2 receptors are involved in modulating neuroinflammation and immune responses. Our research efforts target the treatment of diseases with high unmet medical needs.
Previous wording
Our INM-901 is a proprietary small molecule, disease modifying drug candidate being developed as a potential treatment for Alzheimer’s disease. INM-901 has multiple potential mechanisms of action as a preferential signaling agonist for both CB1 and CB2 receptors, as well as impacting the peroxisome proliferator-activated receptor, or PPAR, signaling pathway. Across multiple preclinical studies, INM-901’s primary mechanism of action is the reduction of neuroinflammation, with statistically significant effects demonstrated in both ex vivo and in vivo models. Additionally, INM-901 targets several other mechanisms of action offering a unique treatment approach targeting several biological pathways associated with Alzheimer’s disease. More recently, these findings translated into advanced human brain organoid systems, where INM-901 showed significant dose-dependent reductions in key pro-inflammatory markers. Together, these data meaningfully de-risk the program and strengthen confidence as the program advances toward a pre-IND meeting and subsequent human clinical trials.
Current wording
Our INM-901 is a proprietary small molecule, disease modifying drug candidate being developed as a potential treatment for Alzheimer’s disease. INM-901 has multiple potential mechanisms of action as a preferential signaling agonist for both CB1 and CB2 receptors, as well as impacting the peroxisome proliferator-activated receptor, or PPAR, signaling pathway. Combined, these mechanisms of action may offer a unique treatment approach targeting several biological pathways associated with Alzheimer’s disease.
Previous wording
We have completed a Phase 2 clinical trial of INM-755 (cannabinol) cream studying its safety and efficacy in treating symptoms related to EB. Results from the Phase 2 clinical trial showed a positive indication of enhanced anti-itch activity for INM-755 cream versus the control cream alone in an exploratory clinical evaluation. We are also pursuing strategic partnership opportunities for INM-755 in EB and other itch-related skin conditions.
Current wording
We have completed a Phase 2 clinical trial of INM-755 (cannabinol) cream studying its safety and efficacy in treating symptoms related to EB. Results from the Phase 2 clinical trial showed a positive indication of enhanced anti-itch activity for INM-755 cream versus the control cream alone in an exploratory clinical evaluation.
Previous wording
Together with BayMedica, our manufacturing capabilities include traditional approaches such as chemical synthesis and biosynthesis, as well as a proprietary, integrated manufacturing approach called IntegraSyn. With multiple manufacturing approaches, we have sought to maintain enhanced flexibility to select the most cost-effective method to deliver high quality, high purity Products and Product Candidates fit for their intended uses. BayMedica’s commercial business specializes in the B2B commercialization of bulk rare, non-intoxicating cannabinoids as raw materials for the Health and Wellness sector that are bioidentical to those found in nature.** **
Current wording
Our manufacturing capabilities include traditional approaches such as chemical synthesis and biosynthesis, as well as a proprietary, integrated manufacturing approach called IntegraSyn. With multiple manufacturing approaches, we have sought to maintain enhanced flexibility to select the most cost-effective method to deliver high quality Product Candidates fit for their intended uses.
Previous wording
Wind Down of BayMedica’s Commercial Operations
Current wording
Wind Down of BayMedica’s Commercial Operations and Assignment for Benefit of Creditors
Previous wording
As previously reported, H.R. 5371, the “Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026” (the “Act”) in its current form and without further amendment, will have a material negative impact on BayMedica LLC (“BayMedica”), a wholly owned subsidiary of the Company. Specifically, certain aspects of BayMedica’s commercial business and its inventory of rare, non-intoxicating cannabinoids would be prohibited under the Act if it becomes effective as planned on November 12, 2026.
Current wording
As previously reported, H.R. 5371, the “Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026” (the “Subject Act”) in its current form and without further amendment, will have a material negative impact on BayMedica. Specifically, certain aspects of BayMedica’s commercial business and its inventory of rare, non-intoxicating cannabinoids would be prohibited under the Subject Act if it becomes effective as planned on November 12, 2026.
Previous wording
On March 4, 2026, our board of directors ratified, confirmed and approved the decision of the board members of BayMedica to wind down and exit BayMedica’s commercial operations business segment (“commercial operations”), which is the only revenue-generating commercial operations of the Company. BayMedica intends to substantially complete the wind down and exit prior to the end of its fiscal year ending June 30, 2026. During the interim period leading to the completion of operational wind down, BayMedica will continue its commercial operations including sales, marketing, limited manufacturing, and logistics. Following the wind down of commercial operations, we will focus exclusively on the development of our Product Candidates, including INM-901 for Alzheimer's disease and INM-089 for dry Age-related Macular Degeneration as they advance towards IND filings and initial human clinical trials.
Current wording
On March 4, 2026, the InMed Board ratified, confirmed and approved the decision of the board members of BayMedica to wind down and exit BayMedica’s commercial operations business segment (“commercial operations”), which is the only revenue-generating commercial operations of InMed. Following the wind down of commercial operations, InMed’s remaining activities have consisted of preclinical development of its Product Candidates, including INM-901 for Alzheimer’s disease, INM-089 for dry Age-related Macular Degeneration or dry AMD, and INM-755 (cannabinol) cream. InMed does not currently intend to devote significant resources to advancing these Product Candidates, and any further development of them would require InMed to obtain additional financing, of which there can be no assurance.
Previous wording
Research and development expenses represent costs incurred by us for the discovery and development of our Product Candidates and include:
Current wording
Research and development and patent expenses represent costs incurred by us for the discovery, development, and manufacture of our Products and Product Candidates and include:
Previous wording
We expense research and development costs as incurred. We recognize expenses for certain development activities, such as preclinical studies, based on an evaluation of the progress to completion of specific tasks using data or other information provided to us by our vendors. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of expenses incurred. Non-refundable advance payments for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses. These amounts are recognized as an expense as the goods are delivered or the related services are performed, or until it is no longer expected that the goods will be delivered, or the services rendered.
Current wording
We expense research and development costs as incurred. We recognize expenses for certain development activities, such as preclinical studies and manufacturing, based on an evaluation of the progress to completion of specific tasks using data or other information provided to us by our vendors. Payments for these activities are based on the terms of the individual agreements, which may differ from the pattern of expenses incurred. Non-refundable advance payments for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses. These amounts are recognized as an expense as the goods are delivered or the related services are performed, or until it is no longer expected that the goods will be delivered, or the services rendered.
Previous wording
The successful development of our Product Candidates is highly uncertain. At this time, we cannot reasonably estimate or know the nature, timing, and estimated costs of the efforts that will be necessary to complete the remainder of the development of our Product Candidates or to develop and commercialize additional Products. We are also unable to predict when, if ever, material net cash inflows will commence from our Product Candidates, if approved. This is due to the numerous risks and uncertainties associated with development, including the uncertainty related to:
Current wording
The successful development of our Products and Product Candidates is highly uncertain. At this time, we cannot reasonably estimate or know the nature, timing, and estimated costs of the efforts that will be necessary to complete the remainder of the development of our Product Candidates or to develop and commercialize additional Products. We are also unable to predict when, if ever, material net cash inflows will commence from our Product Candidates, if approved. This is due to the numerous risks and uncertainties associated with development, including the uncertainty related to:
Previous wording
A change in the outcome of any of these variables with respect to the development of any of Product Candidates would significantly change the costs and timing associated with the development of those Product Candidates.
Current wording
A change in the outcome of any of these variables with respect to the development of any of our Products or Product Candidates would significantly change the costs and timing associated with the development of those Products or Product Candidates.
Previous wording
General and administrative expenses increased by $0.2 million, or 10%, for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. The increase is primarily due to an increase in Salaries and Benefits.
Current wording
General and administrative expenses increased by $0.6 million, or 46%, for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. The increase is primarily due to transaction expenses associated with the pending Merger.
Previous wording
Loss from discontinued operations was $0.2 million for the three months ended March 31, 2026, compared to a loss of less than $0.1 million for the three months ended March 31, 2025. The decrease is primarily due to lower gross profit and higher general and administrative expenses.
Current wording
Loss from discontinued operations was $0.3 million for the three months ended September 30, 2026, compared to a gain of $0.1 million for the three months ended September 30, 2025. The increase in loss is primarily due to the wind down of BayMedica’s Commercial Operations.
Previous wording
Since our inception, we have generated revenue from BayMedica product sales and no sales from any other sources and have incurred significant operating losses and negative cash flows from our operation. We have not yet commercialized any of our Product Candidates and we do not expect to generate revenue from sales of any Product Candidates for several years, if at. We have funded our operations to date primarily with proceeds from the sale of Common Shares.
Current wording
Since our inception, we have generated revenue from BayMedica product sales and no sales from any other sources and have incurred significant operating losses and negative cash flows from our operation. We have not yet commercialized any of our Product Candidates and we do not expect to generate revenue from sales of any Product Candidates for several years, if at all. We have funded our operations to date primarily with proceeds from the sale of Common Shares.
Previous wording
As of March 31, 2026, we had cash, cash equivalents and short-term investments of $5.2 million.
Current wording
As of September 30, 2026, we had cash, cash equivalents and short-term investments of $1.1 million.
Previous wording
During the nine months ended March 31, 2026, we used cash in operating activities of $5.7 million, primarily resulting from our net loss of $6.7 million combined with $0.6 million used in changes in our non-cash working capital, partially offset by non-cash amortization expense and share-based compensation expenses.
Current wording
During the three months ended September 30, 2026, we used cash in operating activities of $1.1 million, primarily resulting from our net loss of $2.3 million combined with $0.9 million used in changes in our non-cash working capital, partially offset by non-cash amortization expense and share-based compensation expenses.
Previous wording
During the nine months ended March 31, 2025, we used cash in operating activities of $6.0 million, primarily resulting from our net loss of $6.4 million combined with a $0.1 million decrease in changes in our non-cash working capital, partially offset by non-cash expenses contributing to net cash used in operating activities.
Current wording
During the three months ended September 30, 2025, we used cash in operating activities of $1.9 million, primarily resulting from our net loss of $1.7 million combined with a $ 0.3 million decrease in changes in our non-cash working capital, partially offset by non-cash expenses contributing to net cash used in operating activities.
Previous wording
During the nine months ended March 31, 2025, cash provided by financing activities of $4.1 million consisted of $4.4 million in gross proceeds derived from the Amended ATM Agreement and SEPA, offset by total transaction costs of $0.3 million.
Current wording
During the three months ended September 30, 2026, cash provided by financing activities of $0.04 million from the exercise of warrants.
Previous wording
During the nine months ended March 31, 2026, cash used in financing activities of $0.1 million consisted of $0.2 million in gross proceeds from the SEPA, offset by total transaction costs of $0.1 million.
Current wording
During the three months ended September 30, 2025, cash used in financing activities of $0.1 million from share issuance costs.
Previous wording
We expect our expenses to increase substantially in connection with our ongoing research and development activities, particularly as we continue the research and development of and the clinical trials for our Product Candidates. In addition, we expect to incur additional costs associated with operating as a US-listed public company and associated with any required investment into our R&D efforts targeting cannabinoid analogs. As a result, we expect to incur substantial operating losses and negative operating cash flows for the foreseeable future.
Current wording
If the Merger does not consummate and subject to our ability to attract sufficient funding to continue operations, we expect our expenses to increase substantially in connection with our ongoing research and development activities, particularly as we continue the research and development of and the clinical trials for our Product Candidates. In addition, we expect to incur additional costs associated with operating as a US-listed public company and associated with any required investment into R&D efforts targeting cannabinoid analogs. As a result, we expect to incur substantial operating losses and negative operating cash flows for the foreseeable future.
Previous wording
Through March 31, 2026, we have funded our operations primarily with proceeds from the sale of our Common Shares. We have incurred recurring losses and negative cash flows from operations since its inception, including net losses of $6.7 million. In addition, we have an accumulated deficit of $124.0 million as of March 31, 2026.
Current wording
Through September 30, 2026, we have funded our operations primarily with proceeds from the sale of our Common Shares. We have incurred recurring losses and negative cash flows from operations since its inception, including net losses of $2.3 million. In addition, we have an accumulated deficit of $132.6 million as of September 30, 2026.
Previous wording
As of the issuance date of these condensed consolidated financial statements, we expect our cash, cash equivalents and short-term investments of approximately $5.2 million as of March 31, 2026 will be sufficient to fund our operating expenses and capital expenditure requirements into the fourth quarter of calendar 2026, depending on the level and timing of our operating expenses. Our future viability is dependent on our ability to raise additional capital to finance its operations. We have concluded that there is substantial doubt about our ability to continue as a going concern within one year after the date that the condensed consolidated financial statements are issued.
Current wording
As of the issuance date of these condensed consolidated financial statements, we expect our cash, cash equivalents and short-term investments of approximately $1.1 million as of September 30, 2026 will be sufficient to fund our operating expenses and capital expenditure requirements into the fourth quarter of calendar 2026, depending on the level and timing of our operating expenses. Our future viability is dependent on our ability to raise additional capital to finance its operations. We have concluded that there is substantial doubt about our ability to continue as a going concern within one year after the date that the condensed consolidated financial statements are issued.
Previous wording
We are exploring a number of potential strategic and/or transformative corporate opportunities and transactions, which may include collaborating or partnering with other companies, an acquisition or sale of the company, asset sales or acquisitions, licensing of intellectual property, among others, while continuing to seek additional funding through equity or debt financings and/or from other capital sources. We may not be successful in identifying or consummating any such transaction or obtaining the financing that we need to fund our operations on acceptable terms, or at all, and the terms of any transaction and/or financing we are able to consummate may adversely affect the holdings or the rights of our existing shareholders and/or the value and trading price of our shares.
Current wording
If the Merger is not completed, the Company expects to continue to seek additional funding through potential strategic and/or transformative corporate opportunities and transactions, which may include collaborating or partnering with other companies, an acquisition or sale of the company, asset sales or acquisitions, licensing of intellectual property, among others, while continuing to seek additional funding through equity or debt financings and/or from other capital sources. We may not be successful in identifying or consummating any such transaction or obtaining the financing that we need to fund our operations on acceptable terms, or at all, and the terms of any transaction and/or financing we are able to consummate may adversely affect the holdings or the rights of our existing shareholders and/or the value and trading price of our shares.
Previous wording
Our funding requirements and the timing and amount of our operating expenditures will depend largely on:
Current wording
If the Merger is not consummated, our funding requirements and the timing and amount of our operating expenditures will depend largely on: