InMed Pharmaceuticals(INM) - 2025 Q2 - Quarterly Report

Financial Performance - For the six months ended December 31, 2024, the company reported a net loss of approximately $4.3 million, compared to a net loss of$4.0 million for the same period in 2023, indicating a year-over-year increase in losses of about 7.5%[29]. - Sales for the three months ended December 31, 2024, were $1.1 million, a decrease of approximately 10.3$1.2 million for the same period in 2023[19]. - Gross profit for the six months ended December 31, 2024, was $954,307, which is an increase of approximately 176.5$345,384 for the same period in 2023[19]. - The company incurred total operating expenses of $4.9 million for the six months ended December 31, 2024, compared to$4.7 million for the same period in 2023, reflecting an increase of approximately 6%[19]. - The company reported a net loss of $2,575,024 for the three months ended December 31, 2024, compared to a net loss of$1,478,185 for the same period in 2023[108]. Assets and Liabilities - Total current assets decreased from $8.7 million as of June 30, 2024, to$5.5 million as of December 31, 2024, reflecting a decline of approximately 37.5%[17]. - The company's cash and cash equivalents decreased from $6.6 million as of June 30, 2024, to$3.4 million as of December 31, 2024, a reduction of about 48%[17]. - The total liabilities decreased from $2.6 million as of June 30, 2024, to$2.3 million as of December 31, 2024, a decline of about 11.3%[17]. - The Company held $1,031,568 in cash equivalents as of December 31, 2024, down from$1,939,482 as of June 30, 2024, indicating a significant decrease in liquidity[41]. - As of December 31, 2024, the uninsured cash balance was $0.9 million, indicating potential exposure to credit risk[46]. Revenue Concentration - Customer A contributed 34$1.1 million, up from $609,791 in the same period of 2023, representing an increase of approximately 74$1.4 million during the six months ended December 31, 2024[91]. - The company has not issued any Common Shares under the Standby Equity Purchase Agreement as of December 31, 2024, which allows for up to $10 million in sales[92]. - As of December 31, 2024, the company had 509,580 outstanding warrants with a weighted average exercise price of$30.18, down from 544,280 warrants at $20.40 as of June 30, 2024[95]. Intangible Assets - The Company has intangible assets totaling$2,927,420 as of December 31, 2024, with accumulated amortization of $1,226,209[85]. - Amortization expense on intangible assets for the three months ended December 31, 2024, was$42,820, compared to $40,993 for the same period in 2023[87]. - The Company expects to incur amortization expense on intangible assets over the next five years totaling$1,701,211[87]. - The Company has not recognized any impairment losses on intangible assets during the three and six months ended December 31, 2024 and 2023[53]. Legal Matters - BayMedica has paid $300,000 for minimum payments due under the Patent License Agreement as of June 30, 2023[116]. - On February 10, 2023, BayMedica received a letter alleging a breach of the Patent License Agreement, which was disputed by the company[116]. - As of July 18, 2024, the Licensor again alleged breach of the Patent License Agreement, with BayMedica asserting no funds are owed[118]. - BayMedica intends to vigorously defend its position if a lawsuit is initiated regarding the Patent License Agreement[119]. - During Q4 2024, legal services rendered by Norton Rose Fulbright amounted to$194,428, compared to $116,951 in Q4 2023[120]. Shareholder Matters - At the 2024 AGM, shareholders withheld the election of Ms. Janet Grove, leading to her resignation from the Board[123].