Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 001-39685

INMED PHARMACEUTICALS INC.

(Exact name of registrant as specified in its charter)

British Columbia, Canada		98-1428279
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Suite 1445 - 885 W. Georgia Street,

Vancouver, B.C.

Canada

V6C 3E8

(Address of Principal Executive Offices)

(Zip Code)

(604) 669-7207

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Shares, no par value		INM		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act): Yes ☐ No ☒

As of February 7, 2025, the registrant had 1,207,186 common shares, without par value, outstanding.

INDEX

	Page
PART I – FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	1

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	21

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	31

ITEM 4. CONTROLS AND PROCEDURES	31

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS	32

ITEM 1A. RISK FACTORS	32

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	33

ITEM 3. DEFAULTS UPON SENIOR SECURITIES	33

ITEM 4. MINE SAFETY DISCLOSURE	33

ITEM 5. OTHER INFORMATION	33

ITEM 6. EXHIBITS	33

SIGNATURES	34

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains “forward-looking statements” within the meaning of United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities law, which are included but are not limited to statements with respect to the Company’s anticipated results and progress of the Company’s operations, research and development in future periods, plans related to its business strategy, and other matters that may occur in the future. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. We may, in some cases, use words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and similar expressions that convey uncertainty of future events or outcomes to identify these forward-looking statements. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. Forward-looking statements in this Quarterly Report include, but are not limited to, statements about:

	●	Ongoing compliance with applicable standards and requirements for the continued listing on Nasdaq of our common shares, no par value (the “Common Shares”);

	●	The efficacy of the Company’s Reverse Stock Split which was effected by the Company on November 14, 2024, including its direct and indirect impact on the liquidity of our Common Shares;

●

The Company’s ability to stem operating losses and the Company’s ability to obtain additional financing to fund its operations, including under the terms of the SEPA (as defined below) and Amended ATM Agreement (as defined below);

●

The revenues of BayMedica, LLC (“BayMedica”) and the commercial viability of its product portfolio;

●

The Company’s ability to effectively research, develop, manufacture and commercialize pharmaceutical drug candidates that will treat diseases with high unmet medical needs;

●

The continued optimization of key, proprietary manufacturing approaches and technologies;

●

Our ability to commercialize and, where required, register products in the pharmaceutical R&D programs (“Product Candidates”) and those targeted to the health and wellness sector (“Products”) in the United States and other jurisdictions;

●

Our success in initiating discussions with potential partners for licensing various aspects of our Product Candidates;

●

Our ability to successfully access existing manufacturing capacity via leases with third-parties or to transfer our manufacturing processes to contract manufacturing organizations;

●

Our belief that our manufacturing approaches that we are developing are robust and effective and will result in commercially viable yields of cannabinoids and will be a significant improvement upon existing manufacturing platforms;

●

Our ability to successfully scale up our IntegraSyn approach to cannabinoid manufacturing. InMed has created genetically engineered microbes that produce proprietary enzymes, which are then used to optimize subsequent biotransformation reactions or other cost-effective manufacturing approaches;

●

The success of the key next steps in our manufacturing approaches, including continuing efforts to diversify the number of products produced, scaling-up the processes to larger vessels and identifying external vendors to assist in the commercial scale-up of the process;

●

Our ability to successfully make determinations as to which research and development programs to continue based on several strategic factors;

●

Our ability to continue to outsource the majority of our research and development activities through scientific collaboration agreements and arrangements with various scientific collaborators, academic institutions, and their personnel;

●

The success of work to be conducted under the research and development collaboration between us and various contract development and manufacturing organizations (“CDMOs”);

●

Our ability to develop our therapies through early human testing;

●

Our ability to evaluate the financial returns on various commercialization approaches for our Product Candidates, such as a ‘go-it-alone’ commercialization effort, out-licensing to third parties, or co-promotion agreements with strategic collaborators;

●

Our ability to find a partnership early in the development process for our various programs;

●

Our ability to explore our manufacturing technologies as processes which may confer certain benefits, including cost, yield, speed, or all the above, when pursuing specific types of molecules, and filing a provisional patent application for same;

●

Plans regarding our next steps, options, and targeted benefits of our manufacturing technologies;

●

Our Products being bio-identical to the naturally occurring molecules, and offering superior ease, control and quality of manufacturing when compared to alternative methods;

●

U.S. Food and Drug Administration (“FDA”) regulatory acceptance of Product Candidates for potential use in the pharmaceutical industry;

●

Our ability to successfully file, prosecute and defend patent applications;

●

The potential for any of our patent applications to provide intellectual property protection for us;

●

The termination or renegotiation of our supplier, technology and other material contracts, including the invoking of force majeure or termination clauses, and actual or threatened claims of our failure to comply with any obligations set forth under such contracts;

●

The adequacy of, or gaps in, insurance coverage upon the occurrence of a catastrophic or other material adverse event, as well as our ability to (i) expand our insurance coverage to include the commercial sale of Products and Product Candidates and (ii) secure insurance coverage for shipping and storage of Product Candidates, and clinical trial insurance;

●

Developing patentable New Chemical Entities (“NCE”) which, if issued, will confer market exclusivity to us for the potential development into pharmaceutical Product Candidates, license, partner or sell to interested external parties;

●

Our ability to initiate discussions and conclude strategic partnerships to assist with the development of certain programs;

●

Our ability to position ourselves to achieve value-driving, near term milestones for our Product Candidates with limited investment;

●

Our ability to effectively execute our business strategy;

●

The sufficiency of our internal controls, including any exposure arising from the failure to (i) establish and maintain effective internal control over financial reporting in accordance with applicable regulatory requirements, and (ii) fully remediate any material weakness identified with respect to such internal controls;

●

Epidemics, pandemics, global health crises, or other public health events and concerns, including any future resurgence of COVID-19, and the effectiveness of associated vaccinations and treatments;

●

Consolidation of our competitors and suppliers;

●

Effects of new products and new technology on the market, including with respect to automation and the use of artificial intelligence;

●

The impact of geopolitical, global, regional or local economic and financial market risks and challenges, applicability of foreign laws, including foreign labor and employment laws, foreign tax and customs regimes, and foreign currency exchange rate risk;

●

Political disturbances, geopolitical instability and tensions, or terrorist attacks, and associated changes in global trade policies and economic sanctions, including, but not limited to, in connection with (i) the Russo-Ukrainian war and (ii) any impact, effect, damage, destruction and/or bodily harm directly or indirectly relating to the ongoing hostilities in the Middle East;

●

The transition to a new presidential administration in the United States, including but not limited to the potential use and effects of tariffs to address the administration’s policy goals, could materially impact the macroeconomic framework in which we operate; and

●

Our ability to effectively and readily identify suitable strategic transaction candidates, including mergers, acquisitions, in- or out-licensing, at reasonable valuations, consummate any transactions and/or successfully integrate any acquired business into our operations, or otherwise consummate a wide range of strategic transactions, and the fact that any such transaction, even if consummated, may not be successful or improve our operating results and financial condition.

This list is not exhaustive of the factors that may affect our forward-looking statements. Some of the important risks and uncertainties that could affect forward-looking statements are described further under IA. “Risk Factors” in our Form 10-K for the year ended June 30, 2024, which was filed with the SEC on September 30, 2024 (the “2024 Annual Report”), Item 1A. “Risk Factors” in this Quarterly Report and Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report. Although we have attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated, or expected. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made and are based only on the information available to us at that time. Except as required by law, we disclaim any obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

iii

PART I

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

Unaudited Condensed Consolidated Financial Statements of

InMed Pharmaceuticals Inc.

For the Three and Six Months Ended December 31, 2024 and 2023

InMed Pharmaceuticals Inc.

(Expressed in U.S. Dollars)

December 31, 2024

INDEX		Page
Financial Statements (Unaudited)

●	Condensed Consolidated Balance Sheets	3
●	Condensed Consolidated Statements of Operations	4
●	Condensed Consolidated Statements of Shareholders’ Equity	5
●	Condensed Consolidated Statements of Cash Flows	6
●	Notes to the Condensed Consolidated Financial Statements	7-20

InMed Pharmaceuticals Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

Expressed in U.S. Dollars

	December 31,			June 30,
	2024			2024
	Unaudited
	$			$
ASSETS
Current
Cash and cash equivalents		3,419,422			6,571,610
Short-term investments		40,787			43,064
Accounts receivable (less provision for credit losses of $nil in each of December 31, 2024 and June 30, 2024)		262,569			352,838
Inventories, net		1,103,356			1,244,324
Prepaids and other current assets		643,986			477,749
Total current assets		5,470,120			8,689,585

Non-Current
Property, equipment and operating lease right-of-use (“ROU”) assets, net		1,230,961			1,249,999
Intangible assets, net		1,701,211			1,783,198
Other assets		100,000			100,000
Total Assets		8,502,292			11,822,782

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current
Accounts payable and accrued liabilities		1,371,233			1,654,011
Current portion of operating lease obligations		419,711			317,797
Total current liabilities		1,790,944			1,971,808

Non-current
Operating lease obligations, net of current portion		529,248			644,865
Total Liabilities		2,320,192			2,616,673
Commitments and Contingencies (Note 11)

Shareholders’ Equity
Common Shares, unlimited authorized shares: 724,152 and 445,908, as of December 31, 2024 and June 30, 2024, respectively, issued and outstanding		84,537,194			82,784,400
Additional paid-in capital		34,844,988			35,368,899
Accumulated deficit		(113,328,651	)		(109,075,759	)
Accumulated other comprehensive income		128,569			128,569
Total Shareholders’ Equity		6,182,100			9,206,109
Total Liabilities and Shareholders’ Equity		8,502,292			11,822,782

The accompanying notes form an integral part of these condensed consolidated financial statements.

InMed Pharmaceuticals Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Expressed in U.S. Dollars

	For the Three Months Ended						For the Six Months Ended
	December 31,						December 31,
	2024			2023			2024			2023
	$			$			$			$
Sales		1,111,707			1,240,200			2,376,345			2,142,062
Cost of sales		650,813			916,058			1,422,038			1,796,678
Gross profit		460,894			324,142			954,307			345,384

Operating Expenses
Research and development and patents		1,060,367			609,791			1,831,547			1,901,884
General and administrative		1,553,583			1,363,958			2,975,509			2,662,689
Amortization and depreciation		53,202			55,234			107,781			110,066
Foreign exchange loss (gain)		47,753			(59,896	)		28,443			(11,439	)
Total operating expenses		2,714,905			1,969,087			4,943,280			4,663,200

Other Income (Expense)
Interest and other income		30,536			166,760			87,630			302,803
Finance expense		(351,549	)		-			(351,549	)		-
Loss before income taxes		(2,575,024	)		(1,478,185	)		(4,252,892	)		(4,015,013	)

Tax expense		-			-			-			-
Net loss for the period		(2,575,024	)		(1,478,185	)		(4,252,892	)		(4,015,013	)

Net loss per share for the period
Basic and diluted		(3.64	)		(3.71	)		(6.43	)		(14.21	)
Weighted average outstanding common shares
Basic and diluted		706,546			398,673			661,052			282,541

The accompanying notes form an integral part of these condensed consolidated financial statements.

InMed Pharmaceuticals Inc.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)

For the Three and Six Months ended December 31, 2024 and 2023

Expressed in U.S. Dollars

	Common Shares				Additional Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Income		Total
		#	$			$			$			$		$
Balance July 1, 2024		445,908	82,784,400			35,368,899			(109,075,759	)		128,569		9,206,109
Private placement		186,361	1,030,063			-			-			-		1,030,063
Share issuance costs		-	(191,824	)		-			-			-		(191,824	)
Exercise of pre-funded warrants		34,700	576,034			(576,034	)		-			-		-
Loss for the period		-	-			-			(1,677,868	)		-		(1,677,868	)
Share-based compensation		-	-			28,964			-			-		28,964
Balance September 30, 2024		666,969	84,198,673			34,821,829			(110,753,627	)		128,569		8,395,444
Private Placement		57,183	396,153			-			-			-		396,153
Share issuance costs		-	(57,632	)		-			-			-		(57,632	)
Loss for the period		-	-			-			(2,575,024	)		-		(2,575,024	)
Share-based compensation		-	-			23,159			-			-		23,159
Balance December 31, 2024		724,152	84,537,194			34,844,988			(113,328,651	)		128,569		6,182,100

	Common Shares			Additional Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Income		Total
		#	$		$			$			$		$
Balance July 1, 2023		166,410	77,620,252		35,741,115			(101,400,209	)		128,569		12,089,727
Loss for the period		-	-		-			(2,536,828	)		-		(2,536,828	)
Share-based compensation		-	-		25,191			-			-		25,191
Balance September 30, 2023		166,410	77,620,252		35,766,306			(103,937,037	)		128,569		(9,578,090	)
Private placement		116,989	2,316,381		2,899,812			-			-		5,216,193
Share issuance costs		-	-		(562,151	)		-			-		(562,151	)
Loss for the period		-	-		-			(1,478,185	)		-		(1,478,185	)
Share-based compensation		-	-		18,264			-			-		18,264
Balance December 31,2023		283,399	79,936,633		38,122,231			(105,415,222	)		128,569		12,772,211

The accompanying notes form an integral part of these condensed consolidated financial statements.

InMed Pharmaceuticals Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Six Months ended December 31, 2024 and 2023

Expressed in U.S. Dollars

	2024			2023
	$			$
Cash provided by (used in):

Operating Activities
Net loss		(4,252,892	)		(4,015,013	)
Items not requiring cash:
Amortization and depreciation		107,782			110,063
Share-based compensation		52,123			43,455
Amortization of ROU assets		166,277			191,909
Interest income received on short-term investments		(874	)		(1,019	)
Unrealized foreign exchange loss		20,338			978
Inventory write-down		-			263,404
Changes in operating assets and liabilities:
Inventories		140,968			608,113
Prepaids and other currents assets		(166,237	)		(614,944	)
Other non-current assets		-			4,908
Accounts receivable		90,269			(112,470	)
Accounts payable and accrued liabilities		(282,778	)		(321,106	)
Deferred rent		-			12,485
Operating lease obligations		(203,924	)		(193,109	)
Total cash used in operating activities		(4,328,948	)		(4,022,346	)

Investing Activities
Sale of short-term investments		24,002			21,317
Purchase of short-term investments		(24,002	)		(21,317	)
Purchase of property and equipment		-			(9,291	)
Total cash used in investing activities		-			(9,291	)

Financing Activities
Proceeds from the private placement		1,426,216			5,216,193
Private placement issuance costs		(249,456	)		(562,151	)
Total cash provided by financing activities		1,176,760			4,654,042
(Decrease) increase in cash during the period		(3,152,188	)		622,405
Cash and cash equivalents beginning of the period		6,571,610			8,912,517
Cash and cash equivalents end of the period		3,419,422			9,534,922

SUPPLEMENTARY CASH FLOW INFORMATION:
Cash Paid During the Period for:
Income Taxes	$	-		$	-
Interest	$	-		$	-

SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Fair value of warrant modification recorded as equity issuance costs	$	-			3,508,749
Preferred investment options to its placement agent	$	-			325,699
Recognition of ROU asset and corresponding operating lease liability	$	187,223		$	968,376

The accompanying notes form an integral part of these condensed consolidated financial statements.

InMed Pharmaceuticals Inc.

Notes to the Condensed Consolidated Financial Statements

1.	CORPORATE INFORMATION AND CONTINUING OPERATIONS

Business

InMed Pharmaceuticals Inc. (“InMed” or the “Company”) was incorporated in the Province of British Columbia on May 19, 1981 under the Business Corporations Act of British Columbia. InMed is a clinical stage pharmaceutical company developing a pipeline of prescription-based products, including rare cannabinoids and novel cannabinoid analogs, targeting the treatment of diseases with high unmet medical needs as well as developing proprietary manufacturing technologies to produce rare cannabinoids for sale in the health and wellness industry.

The Company’s shares are listed on the Nasdaq Capital Market (“Nasdaq”) under the trading symbol “INM”. InMed’s office and principal place of business is located at Suite 1445– 885 West Georgia Street, Vancouver, B.C., Canada, V6C 3E8.

Going Concern

In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40), the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the unaudited condensed consolidated financial statements are issued.

Through December 31, 2024, the Company has funded its operations primarily with proceeds from the sale of the Company’s common shares, no par value per share (the “Common Shares”). The Company has incurred recurring losses and negative cash flows from operations since its inception, including net losses of approximately $4.3 and $4.0 million for the six months ended December 31, 2024 and 2023, respectively. In addition, the Company has an accumulated deficit of approximately $113.3 million as of December 31, 2024. The Company expects to continue to generate operating losses for the foreseeable future.

As of the issuance date of these unaudited condensed consolidated financial statements, the Company expects its cash, cash equivalents and short-term investments of $3.5 million as of December 31, 2024 and the receipt of $2.9M in gross proceeds from financing activities which took place in January 2025 (refer to note 7 – Share Capital and Reserves and note 13 – Subsequent Events included in this Quarterly Report), to be sufficient to fund its operating expenses and capital expenditure requirements through the end of the second quarter of calendar 2025, depending on the level and timing of realizing BayMedica revenues from the sale of bulk rare cannabinoids in the ‘health & wellness’ sector as well as the level and timing of Company operating expenses. The future viability of the Company is dependent on its ability to raise additional capital to finance its operations.

The Company expects to continue to seek additional funding through equity financings, debt financings or other capital sources, including collaborations with other companies, government contracts or other strategic transactions. The Company may not be able to obtain financing on acceptable terms, or at all. The terms of any financing may adversely affect the holdings or the rights of the Company’s existing shareholders.

In connection with the Company’s assessment of going concern considerations in accordance with Subtopic 205-40, management has determined that the Company’s liquidity condition raises substantial doubt about the Company’s ability to continue as a going concern, which is considered to be for a period of one year from the issuance of these condensed consolidated financial statements. These unaudited condensed consolidated financial statements do not include any adjustments relating to recoverability and classification of recorded asset amounts or the amounts of classification of liabilities that might result from the outcome of this uncertainty. Such adjustments could be material.

2.	SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles as applied in the United States (“US GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for financial information.

These unaudited condensed consolidated financial statements reflect all adjustments, consisting solely of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The results of operations for the three and six months ended December 31, 2024 and 2023 are not necessarily indicative of results that can be expected for a full year. These unaudited condensed consolidated financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company for the fiscal year ended June 30, 2024.

On November 14, 2024, the Company effected a reverse stock split of the Company’s issued and outstanding Common Shares, by a ratio of 20-to-1 (the “Reverse Stock Split”). Accordingly, all Common Shares, stock options, warrants, as well as per share information, for all periods presented in the condensed consolidated financial statements and notes thereto have been adjusted retrospectively to reflect this Reverse Stock Split.

Reclassifications

Certain prior year amounts in the unaudited condensed consolidated financial statements and the notes thereto have been reclassified where necessary to conform to the current year’s presentation. These reclassifications did not affect the prior period’s total assets, total liabilities, stockholders’ deficit, net loss or net cash used in operating activities. During the year ended June 30, 2024, the Company adopted ASU 2023-07 - Improvements to Reportable Segment Disclosures which has required prior periods to reflect the change in presentation. Refer to discussion on Recent Accounting Pronouncements below.

Use of Estimates

The preparation of financial statements in compliance with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the balance sheet date, and the corresponding revenues and expenses for the periods reported. It also requires management to exercise judgment in applying the Company’s accounting policies. In the future, actual experience may differ from these estimates and assumptions. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to these unaudited condensed consolidated financial statements are the application of the going concern assumptions, determining the fair value of share-based payments, income tax provisions, write-down of inventories to net realizable value, and the assumptions used in the determination of research & development accruals.

Actual results could differ from those estimates.

Basis of Consolidation

These unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries, InMed Pharmaceutical Ltd; BayMedica, LLC; Biogen Sciences Inc.; and Sweetnam Consulting Inc. Biogen Sciences Inc. and Sweetnam Consulting Inc. are inactive subsidiaries. A subsidiary is an entity that the Company controls, either directly or indirectly, where control is defined as the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All inter-company transactions and balances including unrealized income and expenses arising from intercompany transactions are eliminated in preparing these condensed consolidated financial statements.

Foreign Currency

The functional currency of the Company and its subsidiaries is the U.S. Dollar. These unaudited condensed consolidated financial statements are presented in U.S. Dollars. References to “$” and “US$” are to United States (“U.S.”) dollars and references to “C$” are to Canadian dollars.

Cash and Cash Equivalents

Cash and cash equivalents include cash-on-hand, demand deposits with financial institutions and other short-term, highly liquid investments with original maturities of three months or less when acquired that are readily convertible to known amounts of cash and subject to an insignificant risk of change in value. As of December 31, 2024 and June 30, 2024, the Company held $1,031,568 and $1,939,482, respectively, of cash equivalents in a money market fund that is considered Level 1 in the financial instruments hierarchy due to the readily available quoted prices in active markets for identical instruments.

Short-term Investments

Short-term investments include fixed and variable rate guaranteed investment certificates, with terms greater than three months and less than twelve months. Due to the short-term nature of these investments the fair value of the investments approximates the current value. Guaranteed investment certificates are convertible to known amounts of cash and are subject to an insignificant risk of change in value.

Accounts Receivable

Accounts receivable are recorded at invoiced amounts, net of any credit losses. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable.

The Company evaluates the collectability of accounts receivable on a regular basis based upon various factors including the financial condition and payment history of customers, an overall review of collections experience on other accounts and economic factors or events expected to affect future collections experience.

Concentration of Credit Risk and Other Risks and Uncertainties

At times, cash balances may exceed the Federal Deposit Insurance Corporation (“FDIC”) or Canadian Deposit Insurance Corporation insurable limits. The Company has not previously experienced any losses related to these balances. The uninsured cash balance as of December 31, 2024 was $0.9 million. The Company does not believe it is exposed to significant credit risk on cash and cash equivalents.

The Company’s customers are primarily concentrated in the United States.

Concentration of customers

The following tables summarizes the information about the Company’s concentration of customers:

	Customer A			Customer B			Customer C			Customer D			Customer E

Three Months Ended December 31, 2024
Revenues, customer concentration risk		34	%		33	%		13	%		*			*

Three Months Ended December 31, 2023
Revenues, customer concentration risk		*			20	%		52	%		*			*

Six Months Ended December 31, 2024
Revenues, customer concentration risk		28	%		25	%		17	%		*			12	%

Six Months Ended December 31, 2023
Revenues, customer concentration risk		11	%		13	%		44	%		14	%		10	%

As of December 31, 2024
Accounts receivable, customer concentration risk		52	%		38	%		*			*			11	%

As of June 30, 2024
Accounts receivable, customer concentration risk		32	%		20	%		15	%		15	%		14	%

*	Less than 10%.

Inventories

Inventories are initially valued at weighted average cost and subsequently valued at the lower of weighted average cost and net realizable value. Costs included in inventories are the purchase price of goods and cost of services rendered, freight costs, warehousing costs, purchasing costs and production and labor costs related to manufacturing.

In determining any valuation allowances, the Company reviews inventory for obsolete, redundant, and slow-moving goods.

Property, Equipment and ROU Assets, Net

Computer equipment, lab equipment and furnishings are recorded at cost, less accumulated depreciation and accumulated impairment losses. The initial cost of computer equipment, lab equipment and furnishings comprises their purchase price. The computer equipment, lab equipment and furnishings are reviewed at least once per year for impairment. Equipment and furniture are depreciated using the straight-line method based on their estimated useful lives as follows:

	●	Computer equipment — 5 years

	●	Lab equipment — 6 - 10 years

●

Furnishings — 5 years

Computer equipment, lab equipment and furnishings, acquired or disposed of during the year, are depreciated proportionately for the period they are in use.

The ROU assets are initially measured based on the initial amount of the operating lease liability adjusted for any lease payments made at or before the commencement date, less any lease incentives received. The assets are amortized to the earlier of the end of the useful life of the ROU asset or the lease term using the straight-line method as this most closely reflects the expected pattern of consumption of the future economic benefits. The lease term includes periods covered by an option to extend if the Company is reasonably certain to exercise that option. In addition, the ROU assets are periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability (see Note 2 Lease (i)).

Intangible Assets, Net

Intangible assets are comprised of acquired intellectual property, which consists of certain patents and technical know-how. The intellectual property is recorded at cost and is amortized on a straight-line basis over an estimated useful life of 18 years net of any accumulated impairment losses. There was no impairment loss during the three and six months ended December 31, 2024 and 2023.

Impairment of Long-Lived Assets

The Company assesses the recoverability of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the long-lived asset is measured by a comparison of the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset or assets. If carrying value exceeds the sum of undiscounted cash flows, the Company then determines the fair value of the underlying asset. Any impairment to be recognized is measured as the amount by which the carrying amount of the asset group exceeds the estimated fair value of the asset group. Assets classified as held for sale are reported at the lower of the carrying amount or fair value, less costs to sell.

Fair Value Measurements

Financial Assets

Financial assets are initially recognized at fair value, plus transaction costs that are directly attributable to their acquisition or issue and subsequently carried at amortized cost, using the effective interest rate method, less any impairment losses. No financial assets are elected to be carried at fair value through profit or loss, or where changes in fair value are recognized in these consolidated statements of operations and comprehensive loss in other comprehensive loss.

Short-term investments are subsequently recorded at cost plus accrued interest, which approximates fair value due to their short-term nature. Accounts receivable are reported at outstanding amounts, net of credit losses.

Financial Liabilities

To determine the fair value of financial instruments, the Company uses the fair value hierarchy for inputs used to measure fair value of financial assets and liabilities. This hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels: Level 1 (highest priority), Level 2, and Level 3 (lowest priority).

Level 1 –

Unadjusted quoted prices in active markets for identical instruments.

Level 2 –

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3 –

Inputs are unobservable and reflect the Company’s assumptions as to what market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.

The carrying value of cash and cash equivalents, short-term investments, accounts receivable, and accounts payable and accrued liabilities, approximate their carrying values as of December 31, 2024 and June 30, 2024 due to their immediate or short-term maturities.

Revenue Recognition

The Company recognizes revenue when the Company satisfies the performance obligations under the terms of a contract and control of its products and services is transferred to its customers in an amount that reflects the consideration the Company expects to receive from its customers in exchange for those products and services. ASC 606, Revenue from Contracts with Customers defines a five-step process to recognize revenue that requires judgment and estimates, including identifying the contract with the customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when or as the performance obligation is satisfied.

Revenue consists of manufacturing and distribution sales of bulk rare cannabinoids, which are generally recognized at a point in time. The Company recognizes revenue when control over the products has been transferred to the customer and the Company has a present right to payment. Sales and other taxes that are required to be remitted to regulatory authorities are recorded as liabilities and excluded from sales. Limited rights of return for claims of damaged or non-compliant products, exist with the Company’s customers.

The Company has elected the practical expedient that allows it to recognize the incremental costs of obtaining a contract as an expense, when incurred, if the amortization period of the asset that the Company otherwise would have recognized is one year or less.

Revenues within the scope of ASC 606 do not include material amounts of variable consideration. Customer payments are generally due in advance of when control is transferred to the customer. Some of our larger customers are eligible for payment terms up to ‘net 30 days’.

Cost of Sales

Cost of sales consists primarily of the purchase price of goods and cost of services rendered, freight costs, warehousing costs, and purchasing costs. Cost of sales also includes production and labor costs for the Company’s manufacturing business.

Shipping and Handling

The Company records freight billed to customers within net sales. Shipping and handling costs associated with inbound freight and goods shipped to customers are recorded in cost of sales. Other shipping and handling costs, such as for quality assurance, are recorded in operating expenses.

Earnings (Loss) Per Share

Basic earnings (loss) per Common Share (“EPS”) is computed by dividing the net income or loss applicable to Common Shares by the weighted average number of Common Shares outstanding for the relevant period. Diluted earnings (loss) per Common Share (“Diluted EPS”) is computed by dividing the net income or loss applicable to Common Shares by the sum of the weighted average number of Common Shares issued and outstanding and all additional Common Shares that would have been outstanding, if potentially dilutive instruments were converted. If the conversion of outstanding stock options and warrants into Common Shares is anti-dilutive, then diluted EPS is not presented separately from EPS.

The following table sets forth the number of potential Common Shares that have been excluded from diluted net income (loss) per because their effect was anti-dilutive:

	As of December 31,
	2024		2023
Options		62,416		3,621
Warrants		509,580		509,602
		571,996		512,923

Share-based Payments

The Company follows the requirements of FASB ASC 718-10-10, Share-Based Payments with regards to stock-based compensation issued to employees and non-employees. The Company has agreements and arrangements that call for stock to be awarded to the employees and consultants at various times as compensation and periodic bonuses. The expense for this stock-based compensation is equal to the fair value of the stock price on the day the stock was awarded multiplied by the number of shares awarded. The Company has a relatively low forfeiture rate of stock-based compensation and forfeitures are recognized as they occur.

The valuation methodology used to determine the fair value of the options issued during the period is the Black-Scholes option-pricing model. The Black-Scholes model requires the use of a number of assumptions, including the volatility of the stock price, the average risk-free interest rate, and the weighted average expected life of the options. Risk-free interest rates are calculated based on continuously compounded risk-free rates for the appropriate term. The dividend yield is assumed to be zero as the Company has never paid or declared any cash dividends on its Common Shares and does not intend to pay dividends on its Common Shares in the foreseeable future. The expected forfeiture rate is estimated based on management’s best assessment.

Estimated volatility is a measure of the amount by which InMed’s stock price is expected to fluctuate each year during the expected life of the award. The Company’s calculation of estimated volatility is based on historical stock prices over a period equal to the expected life of the awards.

Research and Development Costs

The Company conducts research and development programs and incurs costs related to these activities, including research and development personnel compensation, services provided by contract research organizations and lab supplies. Research and development costs are expensed in the periods in which they are incurred.

Patents and Intellectual Property Costs

The costs of filing for patents and of prosecuting and maintaining intellectual property rights are expensed as incurred due to the uncertainty surrounding the drug development process and the uncertainty of future benefits. Patents and intellectual property acquired from third parties for approved products or where there are alternative future uses are capitalized and amortized over the remaining life of the patent.

Segment Reporting

The Company’s operations consist of two operating and reportable segments, the “InMed Pharma” segment and the “BayMedica Commercial” segment.

The InMed Pharma segment is largely organized around the research and development of small molecule pharmaceuticals drug candidates and the BayMedica Commercial segment is largely organized around manufacturing technologies to produce and commercialize bulk rare cannabinoids for sale as ingredients in the health and wellness industry (See Note 10).

Leases

At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The lease liability is initially measured as the present value of future lease payments excluding payments made at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. The lease liability is measured at amortized cost using the effective interest method. It is re-measured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension, or termination option. When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of the ROU asset or is recorded in profit or loss if the carrying amount of the ROU asset has been reduced to nil.

The Company has lease arrangements that include both lease and non-lease components. The Company accounts for each separate lease component and its associated non-lease components as a single lease component for all of its asset classes.

The Company has elected to apply the practical expedient to exclude initial direct costs such as annual operating costs from the measurement of the ROU asset at the date of initial application. The Company has elected to apply the practical expedient not to recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less. The lease payments associated with these leases is recognized as an expense on a straight-line basis over the lease term.

Recent Accounting Pronouncements

The Company has reviewed recent accounting pronouncements and concluded that they are either not applicable to the Company or that there was no material impact or no material impact is expected in these unaudited condensed consolidated financial statements as a result of future adoption.

In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting Comprehensive Income - Expense Disaggregation Disclosures, which requires disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The amendments in this update improve financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. This ASU should be applied on a prospective basis, with retrospective application permitted. The amendments in this update are effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the future effect the adoption of this ASU will have on our consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure of specific categories meeting a quantitative threshold within the income tax rate reconciliation, as well as disaggregation of income taxes paid by jurisdiction. This ASU, which can be applied either prospectively or retrospectively, is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of this ASU and expects to include updated income tax disclosures in its fiscal year 2026.

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances reportable segment disclosure requirements primarily through expanded disclosures around significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods presented in the financial statements. The Company has early adopted this accounting pronouncement.

3.	INVENTORIES

Inventories consisted of the following:

	December 31, 2024		June 30, 2024
	$		$
Raw materials		172,200		372,695
Work in process		255,992		30,817
Finished goods		675,164		840,812
Inventories		1,103,356		1,244,324

In determining any valuation allowances, the Company reviews inventory for obsolete, redundant, and slow-moving goods. During the three months ended December 31, 2024 and 2023, the write-down of inventories to net realizable value was $nil and $170,474, respectively. During the six months ended December 31, 2024 and 2023, the write-down of inventories to net realizable value was $nil and $263,404, respectively. Contributing factors to the decrease in net realizable value included lower demand and downward pricing pressure for certain products. As of December 31, 2024 and June 30, 2024, the Company has $103,434 as a valuation allowance to reduce weighted average cost to new basis.

4.	PROPERTY, EQUIPMENT AND ROU ASSETS, NET

Property, equipment and ROU assets consisted of the following:

	December 31, 2024			June 30, 2024
	$			$
ROU Assets (leases)		1,901,692			2,135,811
Equipment		429,091			429,090
Furnishings		40,409			40,409
Property and equipment		2,371,192			2,605,310
Less: accumulated depreciation and amortization		(1,140,231	)		(1,355,311	)
Property, equipment and ROU assets, net		1,230,961			1,249,999

Depreciation expense on computer equipment, lab equipment and furnishing for the three months ended December 31, 2024 and 2023, was $12,209 and $14,242, respectively, and was recorded in general and administrative expenses. Amortization expense related to the ROU assets for the three months ended December 31, 2024 and 2023, was $75,876 and $93,085, respectively, and was recorded in general and administrative expenses.

Depreciation expense on computer equipment, lab equipment and furnishing for the six months ended December 31, 2024 and 2023, was $25,795 and $28,080, respectively, and was recorded in general and administrative expenses. Amortization expense related to the ROU assets for the six months ended December 31, 2024 and 2023, was $166,277 and $191,909, respectively, and was recorded in general and administrative expenses.

5.	INTANGIBLE ASSETS

The following table summarizes the Company’s intangible assets:

	December 31, 2024			June 30, 2024
	$			$
Intellectual property		1,736,420			1,736,420
Patents		1,191,000			1,191,000
Intangible assets		2,927,420			2,927,420
Less: accumulated amortization		(1,226,209	)		(1,144,222	)
Intangible assets, net		1,701,211			1,783,198

Acquired intellectual property is recorded at cost and is amortized on a straight-line basis over 18 years. Acquired patents consist of patents related to the development of cannabinoid analogs. This intangible asset is being amortized over an estimated useful life of 18 years. As of December 31, 2024, the definite-lived intangible assets had a weighted average estimated remaining useful life of approximately 11 years.

Amortization expense on intangible assets for the three months ended December 31, 2024 and 2023 was $42,820 and $40,993, respectively. Amortization expense on intangible assets for the six months ended December 31, 2024 and 2023 was $81,986 and $81,986, respectively. The Company expects amortization expense to be incurred over the next five years as follows:

Year ending June 30,	$
2025 (remaining)		81,373
2026		162,746
2027		162,746
2028		162,746
2029		162,746
Thereafter		968,854
Total		1,701,211

6.	ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities consist of the following:

	December 31, 2024		June 30, 2024
	$		$
Trade payables		574,563		626,190
Accrued research and development expenses		249,784		242,066
Inventory related accruals		12,250		41,004
Employee compensation, benefits and related accruals		337,236		488,278
Accrued general and administrative expenses		197,400		256,473
Accounts payable and accrued liabilities		1,371,233		1,654,011

7.	SHARE CAPITAL AND RESERVES

Authorized

As of December 31, 2024, the Company’s authorized share structure consisted of an unlimited number of: (i) Common Shares; and (ii) preferred shares without par value. No preferred shares were issued and outstanding as of December 31, 2024 and June 30, 2024.

The Company may, from time to time, issue preferred shares and may, at the time of issuance, determine the rights, preferences and limitations pertaining to these shares. Holders of preferred shares may be entitled to receive a preference payment in the event of any liquidation, dissolution or winding up of the Company before any payment is made to the holders of Common Shares.

On June 27, 2024, the Company entered into an amendment (the “ATM Amendment”) to its At-the-Market Offering Agreement, dated April 7, 2022 (the “Original ATM Agreement” and together with the ATM Amendment, the “Amended ATM Agreement”), pursuant to which the Company may offer and sell Common Shares, from time to time, in “at the market” offerings through the Agent. The ATM Amendment amends the Original ATM Agreement to reflect, among other provisions, updates to certain sales settlement provisions and reimbursement terms, and to supplement the representations being made by the Company to the Agent. During the six months ended December 31, 2024, the Company issued 243,547 Common Shares for gross proceeds of approximately $1.4 million. This amount has been offset by financing fees of approximately $249,000. The Company’s Registration Statement on Form S-3 which was previously filed with the SEC in connection with the transactions contemplated by the Amended ATM Agreement expired on February 10, 2025.

On December 13, 2024, the Company entered into a Standby Equity Purchase Agreement (the “SEPA”) with YA II PN, LTD (the “Investor”) to sell up to $10 million in the aggregate of our Common Shares at any time during the 36-month period following the effective date of the SEPA (the “Effective Date”). The total number of Common Shares under the terms of the SEPA is limited to a number equivalent to 19.99% of the outstanding Common Shares as of the Effective Date unless certain pricing conditions are met, which could have the effect of limiting the total proceeds made available to the Company under the SEPA. In addition, the issuance of our Common Shares under the SEPA is subject to further limitations, including that the Common Shares beneficially owned by the Investor and its affiliates will not exceed 9.99% in the aggregate of our Common Shares issued and outstanding. The Common Shares issued and sold to the Investor will be priced at 97% of the Market Price (as defined in the SEPA) during a specified three-day pricing period.) The Company reserves the right to set a minimum acceptable price for the Common Share issuances made under the SEPA. The Company did not issue any Common Shares under the SEPA as at December 31, 2024. Certain terms of the SEPA, including with respect to the specified three-day pricing period discussed above, may be modified or waived, as mutually agreed upon by the Investor, on the one hand, and the Company, on the other, in accordance with Section 12.02 and the other provisions of the SEPA. The foregoing description of the terms of the SEPA does not purport to be complete and is qualified in its entirety by reference to the full text of the SEPA.

Under the terms of the SEPA, the Company paid the Investor a one-time structuring fee in the amount of $25,000 and the Company is also obligated to pay a commitment fee in an amount equal to 2.50% of the Commitment Amount (or $250,000), 25% of which was paid in December 2024. The remaining 75% of the Commitment Fee shall be paid in three equal quarterly installments beginning on the three-month anniversary of the Effective Date, with each such installment to be paid at the Company’s option either in cash or by the issuance to the Investor of such number of Common Shares that is equal to such portion of the deferred fee divided by the lowest daily VWAP of the Common Shares during the consecutive Trading Days immediately prior to the date of such installment at the Effective Date. The Commitment Fee and other SEPA related fees of $351,549 were expensed during the three and six months ended December 31, 2024, since at the inception of the arrangement, the fees exceeded the fair value of the asset recognized. The SEPA was precluded from equity treatment in accordance with ASC 815-40-25 as the SEPA was not deemed fixed according to the accounting standard.

Common Share Warrants

The Company did not grant any warrants during the six months ended December 31, 2024.

A summary of the Company’s warrant activity and related information for the periods covered were as follows:

	Number of Shares Under Warrants			Weighted Average Exercise Price
Balance as at June 30, 2024		544,280		$	20.40
Warrants Granted		-			-
Exercised		(34,700	)		-
Expire/Cancelled		-			-
Warrants Outstanding as at December 31, 2024		509,580		$	30.18

Warrants Exercisable as at December 31, 2024		509,580		$	30.18

As of December 31, 2024 and June 30, 2024, the warrants exercisable and outstanding have an intrinsic value of $nil and $184,539, respectively, with a weighted average remaining life of 4 years and 6 years, respectively.

8.	SHARE-BASED PAYMENTS

Option Plan Details

On March 24, 2017, and as amended on November 20, 2020, the Company’s shareholders approved: (i) the adoption of a new stock option plan (the “Plan”) pursuant to which the Company’s Board of Directors may, from time to time, in its discretion and in accordance with applicable regulatory requirements, grant to directors, officers, employees and consultants of the Company, non-transferable options to purchase Common Shares, provided that the number of Common Shares reserved for issuance will not exceed twenty percent (20%) of the issued and outstanding Common Shares at the date the options are granted (on a non-diluted and rolling basis); and (ii) the application of the Plan to all outstanding stock options of the Company that were granted prior to March 24, 2017 under the terms of the Company’s previous stock option plan. On December 18, 2024 and December 19, 2023, the Company’s Board of Directors approved the reservation of an additional 60,000 and 35,000 Common Shares under the Plan, respectively.

As of each of December 31, 2024 and June 30, 2024, there were 40,272 and 8,966 stock options immediately available for future allocation pursuant to applicable regulatory requirements. The maximum number of options issuable under the terms of the Plan equates to 20% of the then issued and outstanding shares. The option price under each option shall not be less than the closing price on the day prior to the date of grant. All options vest upon terms as set by the Board of Directors, either over time, up to 36 months, or upon the achievement of certain corporate milestones.

On December 20, 2024, the Company granted 28,700 stock options to its employees and external directors.

The weighted average assumptions used in the Black-Scholes option pricing model in valuing stock options granted during the three and six months ended December 31, 2024 and 2023, are summarized in the table below.

	2024			2023
Exercise price	$	4.14		$	7.4
Risk-free interest rate		4.21	%		3.95	%
Volatility		125	%		203	%
Expected life (years)		3.4			3.6
Dividend yield		0	%		0	%

The following is a summary of changes in outstanding options from July 1, 2024 to December 31, 2024 :

	Number			Weighted Average Exercise Price
Balance at July 1, 2024		33,722		$	56.68
Granted		28,700			4.14
Expired/Forfeited		(6	)		2,866.46
Balance at December 31, 2024		62,416		$	32.25
December 31, 2024:
Vested and exercisable		15,240		$	115.32
Unvested		47,176		$	5.42

Total expenses arising from share-based payment transactions recognized during the three months ended December 31, 2024 and 2023 were $23,159 and $18,264 respectively, of which $13,974 and $10,136, respectively, was allocated to general and administrative expenses, $9,035 and $8,128, respectively, was allocated to research and development expenses, and $150 and $nil, respectively, was allocated to Cost of Goods sold.

Total expenses arising from share-based payment transactions recognized during the six months ended December 31, 2024 and 2023 were $52,123 and $43,455 respectively, of which $31,539 and $25,567, respectively, was allocated to general and administrative expenses, $20,215 and $8,128, respectively, was allocated to research and development expenses, and $369 and $nil, respectively, was allocated to cost of goods sold.

Unrecognized compensation cost as of December 31, 2024 (which was related to unvested options) was $136,899, which will be recognized over a weighted-average vesting period of approximately 1.4 years.

9.	LEASE OBLIGATIONS

The Company is committed to minimum operating lease payments as follows:

Maturity Analysis	June 30,
	$
2025		230,141
2026		469,194
2027		313,230
2028		-
2029		-
Total undiscounted operating lease liabilities		1,012,565
Less: imputed interest		(63,606	)
Present value of operating lease liabilities		948,959

Less: Current portion of operating lease liabilities		(419,711	)
Non-current portion of operating lease liabilities		529,248

On July 29, 2024, the Company entered into a lease agreement for new office space. This office occupies approximately 2,243 square feet with a monthly basic rental rate and operating charges of an estimated C$12,296 for the two-year term of the agreement. The Company used an incremental borrowing rate of 7% and recognized a ROU asset and corresponding operating lease liability of $205,201.

On October 5, 2023, BayMedica amended its lease located at 458 Carlton Court, Suite C, South San Francisco, California, in order to extend its lease to May 14, 2027. The Company is obligated to pay $1,295,759 over the three-year period unless terminated before the end of the period. The Company used an incremental borrowing rate of 6.15% and recognized a ROU asset and corresponding operating lease liability of $953,935.

10.

SEGMENT INFORMATION

The Company reports segment information based on the management approach, which designates the internal reporting used by the Chief Operating Decision Maker (“CODM”), the Company’s Chief Executive Officer and the senior management team, for making decisions and assessing performance as the source of the Company’s reportable segments. The CODM allocates resources and assesses the performance of each operating segment based on potential licensing opportunities, historical and potential future product sales, operating expenses, and operating income (loss) before interest and taxes. The Company has determined its reportable segments to be ‘InMed Pharma’ and ‘BayMedica Commercial’ based on the information used by the CODM. As such, the pharmaceutical-related research and development carried out at BayMedica is included with the InMed Pharma segment. Other than cash, cash equivalents and short-term investments (“Unrestricted cash”) balances, the CODM does not regularly review asset information by reportable segment and, therefore, the Company does not report asset information by reportable segment.

The ‘InMed Pharma’ segment is largely organized around the research and development of small molecule pharmaceuticals drug candidates and the BayMedica Commercial segment is largely organized around manufacturing technologies to produce and commercialize bulk rare cannabinoids for sale as ingredients in the health and wellness industry. Total assets held in the ‘InMed Pharma’ segment as of December 31, 2024 and June 30, 2024 were $6.8 million and $9.2 million, respectively. Total assets as of December 31, 2024 and June 30, 2024, held in the BayMedica Commercial segment were $2.0 million and $2.6 million, respectively.

The following table presents information about the Company’s reportable segments for the three months ended December 31, 2024 and 2023:

	Three Months Ended December 31,
	2024									2023
	InMed			BayMedica			Total			InMed			BayMedica			Total
	$			$			$			$			$			$
Sales		-			1,111,707			1,111,707			-			1,240,200			1,240,200
Cost of sales		-			(650,813	)		(650,813	)		-			(916,058	)		(916,058	)
Research and development patents		(1,055,704	)		(4,663	)		(1,060,367	)		(567,139	)		(42,652	)		(609,791	)
General and Administrative		(1,332,919	)		(220,664	)		(1,553,583	)		(1,163,562	)		(200,396	)		(1,363,958	)
Amortization and depreciation		(52,603	)		(599	)		(53,202	)		(54,636	)		(598	)		(55,234	)
Foreign exchange gain (loss)		(47,753	)		-			(47,753	)		59,896			-			59,896
Interest and other income		30,536			-			30,536			165,383			1,377			166,760
Finance expense		(351,549	)		-			(351,549	)		-			-			-
Net Income (Loss)		(2,809,992	)		234,968			(2,575,024	)		(1,560,058	)		81,873			(1,478,185	)

The following table presents information about the Company’s reportable segments for the six months ended December 31, 2024 and 2023:

	Six Months Ended December 31,
	2024									2023
	InMed			BayMedica			Total			InMed			BayMedica			Total
	$			$			$			$			$			$
Sales		-			2,376,345			2,376,345			-			2,142,062			2,142,062
Cost of sales		-			(1,422,038	)		(1,422,038	)		-			(1,796,678	)		(1,796,678	)
Research and development patents		(1,818,578	)		(12,969	)		(1,831,547	)		(1,838,578	)		(63,306	)		(1,901,884	)
General and Administrative		(2,571,100	)		(404,409	)		(2,975,509	)		(2,227,222	)		(435,467	)		(2,662,689	)
Amortization and depreciation		(106,583	)		(1,198	)		(107,781	)		(108,877	)		(1,189	)		(110,066	)
Foreign exchange gain (loss)		(28,443	)		-			(28,443	)		11,439			-			11,439
Interest and other income		87,630			-			87,630			301,426			1,377			302,803
Finance expense		(351,549	)		-			(351,549	)		-			-			-
Net Income (Loss)		(4,788,623	)		535,731			(4,252,892	)		(3,861,812	)		(153,201	)		(4,015,013	)
Cash and Cash Equivalents		2,893,016			526,406			3,419,422			8,226,917			1,308,005			9,534,922

11.

COMMITMENTS AND CONTINGENCIES

Pursuant to the terms of agreements with various contract research organizations, as of December 31, 2024, the Company was committed for contract research services and materials at a cost of approximately $755,074, expected to occur in the following twelve-month period.

Pursuant to the terms of a certain Technology Assignment Agreement, dated as of May 31, 2017 (the “Technology Agreement”), between the Company and the University of British Columbia (“UBC”), the Company is committed to pay royalties to UBC on certain licensing and royalty revenues received by the Company for biosynthesis of certain drug products that are covered by the Technology Agreement. To date, no payments have been required to be made.

Pursuant to the terms of a certain Collaborative Research Agreement, dated as of December 13, 2018, between the Company and UBC, pursuant to which the Company owns all rights, title and interests in and to any intellectual property, in addition to funding research at UBC, the Company is committed to make a one-time payment upon filing of any PCT patent application arising from the research. To date, one such payment has been made to UBC.

Pursuant to the terms of a certain Contribution Agreement, dated as of November 1, 2018, between the Company and National Research Council Canada, as represented by its Industrial Research Assistance Program (NRC-IRAP), under certain circumstances contributions received, including the disposition of the underlying intellectual property developed in part with NRC-IRAP contributions, may become repayable. As of December 31, 2024, there have been no triggering events to cause a repayment.

Short-term investments include guaranteed investment certificates, with one-year terms, of $40,787 and $43,064 as of December 31, 2024 and June 30, 2024, respectively, that are pledged as security for a corporate credit card.

In addition to the foregoing, the Company has entered into certain agreements in the ordinary course of operations that may include indemnification provisions, which are common in such agreements. In some cases, the maximum amount of potential future indemnification is unlimited; however, the Company currently holds commercial general liability insurance. This insurance may limit the Company’s overall liability and may enable the Company to recover a portion of any future amounts paid. Historically, the Company has not made any indemnification payments under such agreements, and it believes that the fair value of these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations for any period presented.

Pursuant to that certain Technology Licensing Agreement, dated as of March 11, 2021, between the Company and EyeCRO LLC, the Company is committed to issue, subject to regulatory approval, up to 700 warrants to purchase 700 Common Shares upon the achievement of certain milestones. The exercise price of the warrants will be equal to the five-day VWAP of our Common Shares prior to each milestone achievement and the warrants will be exercisable for a period of three years from the issuance date. On May 10, 2024, the Company delivered a 90-day notice of termination to EyeCRO LLC with respect to the Technology Licensing Agreement, specifying an effective date of termination of August 8, 2024.

BayMedica entered into a patent license agreement (“Patent License Agreement”) with a third party (the “Licensor”) on February 15, 2021. The Company was required to begin making royalty payments to the Licensor based on net sales of licensed products in 2021 in order to maintain an exclusive license. In December 2021, the Company amended the Patent License Agreement, which amendment included the deferral of the 2021 minimum payments to 2022. As of June 30, 2023, the Company had paid $300,000 for the minimum payments due and payable under the Patent License Agreement. On February 10, 2023, BayMedica received a letter from the Licensor alleging a breach of the Patent License Agreement and asserting a right to monies due thereunder. On April 6, 2023, BayMedica sent a letter to the Licensor disputing the Licensor’s interpretation of the Patent License Agreement and asserted that the counterparty’s only remedy under the Patent License Agreement to be either (a) the conversion of an exclusive technology license into a non-exclusive license or (b) the termination of the Patent License Agreement.

On July 18, 2024, BayMedica received a letter from the Licensor alleging breach of the Patent License Agreement and asserting monies due thereunder. On August 7, 2024, BayMedica responded asserting that the counterparty’s interpretation of the Patent License Agreement was again incorrect and that BayMedica, therefore, does not owe any funds under the Patent License Agreement.

To date, the Licensor has not initiated a lawsuit with respect to the foregoing matters. If a lawsuit is ultimately brought alleging a breach of the Patent License Agreement, the proceeding will be subject to final, binding and non-appealable arbitration under the Arbitration Act, 1991 (Ontario) and determined pursuant to Ontario law. BayMedica intends to vigorously defend its position. At this time, it is not possible to reasonably estimate a potential loss due to the terms of the Patent License Agreement, the nature of the legal theory advanced by the counterparty, and the ultimate outcome of any proceeding (including the interpretation by the arbitrator with respect to applicable requirements under Ontario law regarding contract formation).

12.

RELATED PARTY TRANSACTIONS

On February 11, 2022, the Board of Directors appointed Janet Grove as a director of the Company, a position she held until February 10, 2025, at which time the Company’s Board of Directors (the “Board”), upon the outcome of the Nominating & Governance Committee’s determination and recommendation, elected to accept her resignation from the Board (see Note 13 – Subsequent Events). Ms. Grove is a Partner of Norton Rose Fulbright Canada LLP (“NRFC”). During the three months ended December 31, 2024 and 2023, NRFC and Norton Rose Fulbright US LLP (“NRFUS” and together with NRFC, “NRF”) rendered legal services in the amount of $194,428 and $116,951, respectively, to the Company. During the six months ended December 31, 2024 and 2023, NRF rendered legal services in the amount of $316,978 and $131,154, respectively, to the Company. These transactions were in the normal course of operations and were measured at the exchange amount which represented the amount of consideration established and agreed to by NRF. No legal services rendered by NRF were provided by Ms. Grove directly.

13.

SUBSEQUENT EVENTS

The Company has evaluated subsequent events through the date of the filing of this Quarterly Report and determined that there have been no events that have occurred that would require adjustments to our disclosures in the unaudited condensed consolidated financial statements except for the matters described below.

In January 2025, the Company issued 413,336 Common Shares for gross proceeds of $2,455,600 pursuant to the terms of the SEPA.

In January 2025, the Company issued 69,698 Common Shares for gross proceeds of $479,400 pursuant to the terms of the Amended ATM Agreement.

At the Company’s 2024 Annual General Meeting held on December 18, 2024 (the “2024 AGM”), the Company’s shareholders withheld the election of one nominee, Ms. Janet Grove, from being appointed as a member of the Company’s Board of Directors (the “Board”), in accordance with the Company’s Majority Voting Policy. As a result, Ms. Grove offered her resignation to the Board, and the Company’s Nominating & Governance Committee, in accordance with the Majority Voting Policy, considered her resignation and ultimately recommended to the Board to accept Ms. Grove’s resignation. On February 10, 2024, the Board elected to accept Ms. Grove’s resignation. The Board intends to initiate a search for an independent director to replace Ms. Grove as soon as reasonably practicable. In the interim, the Board will continue to operate with the remaining four directors, and each committee of the Board will be comprised of the three independent directors who were re-appointed for directorship at the 2024 AGM. The Board Chair will assume the role of Chair of the Nominating & Governance Committee.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

This discussion and analysis contains certain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, and is subject to the safe harbor created by those sections. For more information, see “Special Note Regarding Forward-Looking Statements.” When reviewing the discussion below, you should keep in mind the substantial risks and uncertainties that impact our business. In particular, we strongly encourage you to review the risks and uncertainties described in “Risk Factors” in the 2024 Annual Report, the “Risk Factors” identified in Item 1A. of this Quarterly Report, and other filings we make from time to time with the SEC. These risks and uncertainties could cause actual results to differ materially from those projected or implied by our forward-looking statements contained in this Quarterly Report on Form 10-Q. These forward-looking statements are made as of the date of this Quarterly Report on Form 10-Q, and we do not intend, and do not assume any obligation, to update these forward-looking statements, except as required by law.

The following discussion and analysis should be read in conjunction with our audited consolidated financial statements for the year ended June 30, 2024, and the related notes thereto, which have been prepared in accordance with U.S. GAAP. Additionally, the following discussion and analysis should be read in conjunction with our audited consolidated financial statements included in our Annual Report. Throughout this discussion, unless the context specifies or implies otherwise the terms “InMed,” “Company,” “we,” “us,” and “our” refer to InMed Pharmaceuticals Inc.

All dollar amounts stated herein are in U.S. dollars unless specified otherwise.

Overview

We are a pharmaceutical company developing 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 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.

InMed has sought to focus on the research and development of preferential signaling ligands of CB1 and CB2, and has produced a library of novel, proprietary drug candidates (“Product Candidates”). These Product Candidates are patentable new chemical entities (“NCEs”) for pharmaceutical development, aimed at targeting diverse clinical indications. Our current pharmaceutical pipeline consists of three programs, with drug candidates targeting Alzheimer’s disease, dry age-related macular degeneration, and Epidermolysis Bullosa.

InMed’s 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 (“PPAR”) signaling pathway. Combined, these mechanisms of action may offer a unique treatment approach targeting several biological pathways associated with Alzheimer’s disease.

Outcomes from our ocular research, based on the proprietary small molecule INM-089, indicates potentially promising neuroprotective effects in the back of the eye, which may lead to the preservation of the retinal function. Neuroprotection in dry Aged-related Macular Degeneration (“dry AMD”) remains an unmet medical need and a new treatment option may help solve this multifactorial disease.

InMed has completed a Phase 2 clinical trial of INM-755 (cannabinol) cream studying its safety and efficacy in treating symptoms related to Epidermolysis Bullosa (“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. The Company is also pursuing strategic partnership opportunities for INM-755 in epidermolysis bullosa and other itch-related skin conditions.

Together with our wholly owned subsidiary 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, InMed has 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 use. 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.

Recent Developments

NASDAQ Compliance

As previously reported by the Company, on March 19, 2024, the Company received written notification from the Listing Qualifications Department of Nasdaq (the “Nasdaq Staff”), that the Company has been granted an additional 180-day compliance period, or until September 16, 2024 (the “Extended Compliance Period”), to regain compliance with Nasdaq’s minimum bid price requirement for the continued listing on Nasdaq, as set forth in Nasdaq Listing Rule 5550(a)(2) (“the Minimum Bid Price Rule”). The Company was unable to regain compliance during the Extended Compliance Period and on September 17, 2024, the Company received an additional notification from the Nasdaq Staff stating that due to the deficiency, the Company’s securities would be delisted from Nasdaq on September 26, 2024, unless the Company appealed Nasdaq’s determination to a Hearings Panel (“the Panel”). The Company subsequently timely requested the Hearing before the Panel to appeal the determination by Nasdaq and present its plan to regain and sustain compliance with the Minimum Bid Price Rule. On October 31, 2024, the Hearing was held before the Panel regarding the Company’s request for (i) continued listing on Nasdaq and (ii) additional time to regain compliance with the Minimum Bid Price Rule. On November 1, 2024, the Panel issued its determination (the “Panel Determination Letter”) to the Company granting the Company’s request for the continued listing of the Common Shares on Nasdaq, but subject to the Company’s evidencing compliance with the Minimum Bid Price Rule for ten consecutive trading days as of December 2, 2024 (the “Requisite Compliance Date”) and of other conditions stipulated by the Panel Determination Letter. On November 14, 2024, the Company effected the Reverse Stock Split in order to regain compliance with the Minimum Bid Price Rule, and on December 2, 2024, the Company received a written notification from the Nasdaq Staff that (i) it had regained compliance with the Minimum Bid Price Rule prior to the Requisite Compliance Date, and (ii) the Panel had therefore determined to continue the listing of our Common Shares on the Nasdaq Stock Market and was closing this matter.

Reverse Stock Split

On November 14, 2024, the Company effected a reverse stock split of the Company’s issued and outstanding Common Shares, by a ratio of 20-to-1 (the “Reverse Stock Split”). Trading of our Common Shares on Nasdaq on a split-adjusted basis began as of November 14, 2024. As a result of the Reverse Stock Split, every twenty shares of Common Shares were combined into one Common Share, and the total number of Common Shares outstanding were reduced from approximately 14,361,550 Common Shares to approximately 718,032 Common Shares. No fractional Common Shares were issued if, as a result of the Reverse Stock Split, a registered shareholder would otherwise become entitled to a fractional share. Instead, shareholders who otherwise were entitled to receive fractional Common Shares because they held a number of Common Shares not evenly divisible by the ratio of the Reverse Stock Split were automatically entitled to receive an additional Common Share. Unless otherwise noted, the share-related information reflected herein reflects our Common Shares on a split-adjusted basis.

Renewal of ATM Program

As previously reported by the Company on the Company’s Current Report on Form 8-K filed on June 28, 2024, on June 27, 2024, the Company entered into an amendment (the “ATM Amendment”) to its At-the-Market Offering Agreement, dated April 7, 2022 (the “Original ATM Agreement” and together with the ATM Amendment, the “Amended ATM Agreement”), by and between the Company and H.C. Wainwright & Co., LLC (the “Agent”), as sales agent, pursuant to which the Company may offer and sell shares of our Common Shares, from time to time, in “at the market” offerings through the Agent. The Original ATM Agreement was previously filed with the Securities and Exchange Commission on April 7, 2022 on the Company’s Current Report on Form 8-K. The ATM Amendment amends the Original ATM Agreement to reflect, among other provisions, updates to certain sales settlement provisions and reimbursement terms, and to supplement the representations being made by the Company to the Agent. Our Common Shares sold under the Amended ATM Agreement will be offered and sold pursuant to the Company’s shelf registration statement on Form S-3, which was initially filed on February 4, 2022 and amended on February 9, 2022, and was declared effective by the SEC on February 11, 2022. The foregoing description of the terms of the ATM Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the ATM Amendment.

As of the date of this Quarterly Report, the Company has issued a total of 313,245 Common Shares for gross proceeds of $1.9 million, pursuant to the terms of the Amended ATM Agreement. The Company’s Registration Statement on Form S-3 which was previously filed with the SEC in connection with the transactions contemplated by the Amended ATM Agreement expired on February 10, 2025.

Standby Equity Purchase Agreement

As of the date of this Quarterly Report, the Company has issued a total of 413,336 Common Shares for gross proceeds of $2,455,600 pursuant to the terms of the SEPA.

Annual General Meeting – Director Resignation

Advancements to the INM-901 program

On January 21, 2025, we announced positive results from a long-term in vivo preclinical Alzheimer’s Disease (“AD”) study. In the study, INM-901 demonstrated a reduction in several plasma and brain markers of neuroinflammation, a recognized contributor to Alzheimer’s disease development and progression. Results from the long-term study of INM-901 in a well-characterized Alzheimer’s disease model demonstrated the following:

●

Improved cytokine profile – INM-901 treated groups showed a dose-dependent and statistically significant reduction in plasma pro-inflammatory cytokines such as TNF-α, IL-1ß and INF-γ. Cytokine networks, when deregulated, may contribute to tissue inflammation.

●

Reduction in neurodegeneration biomarker – INM-901 demonstrated a dose-dependent and statistically significant reduction in neurofilament light chain (“NfL”) in the plasma for the high dose treated group. NfL is a protein that is released from neurons in response to injury or disease. NfL levels are used to assess cellular damage in neurodegenerative disease.

●

Study supported by mRNA data – mRNA assessments showed a reduction of several key neuroinflammatory genes in the brain, such as GFAP, CD-33 and TLR-2, further supporting the overall results from the study.

Advancements to the INM-089 program

On February 3, 2025, we announced the selection of an intravitreal formulation for INM-089 as a drug candidate to be utilized in the Company’s ongoing development program targeting the treatment of Age-related Macular Degeneration (“AMD”). The Company’s proprietary IVT formulation, combined with the INM-089 active pharmaceutical ingredient (“API”), has been successfully delivered to the targeted area of the eye in preclinical studies in doses of up to 10 times the calculated safety margin relative to the therapeutic dose level. This INM-089 IVT formulation will be used in the next stages of preclinical studies, including GLP-enabling studies and subsequent stages of clinical development. Additionally, the Company has recently completed a series of dose-ranging in vivo studies, which will help guide the Company in selecting the appropriate doses for the pivotal preclinical toxicology studies.

Components of Results of Operations

Revenue

Our revenue consists of manufacturing and distribution sales of bulk rare cannabinoid Products, which are generally recognized at a point in time. The Company recognizes revenue when control over the products has been transferred to the customer and the Company has a present right to payment.

Cost of Sales

Operating Expenses

Research and Development and Patent Expenses

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:

●

external research and development expenses incurred under agreements with contract research organizations (“CROs”), CDMOs and consultants;

●

salaries, payroll taxes, employee benefits expenses for individuals involved in research and development efforts;

	●	research supplies; and

	●	legal and patent office fees related to patent and intellectual property matters.

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.

External costs represent a significant portion of our research and development expenses, which we track on a program-by-program basis following the nomination of a development candidate. Our internal research and development expenses consist primarily of personnel-related expenses, including salaries, benefits, and stock-based compensation expenses. We do not track our internal research and development expenses on a program-by-program basis as the resources are deployed across multiple projects.

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:

●

the timing and progress of preclinical and clinical development activities;

●

the number and scope of preclinical and clinical programs we decide to pursue;

●

our ability to raise additional funds necessary to complete preclinical and clinical development and commercialization of our Product Candidates, to further advance the development of our manufacturing technologies, and to develop and commercialize additional Products, if any;

●

our ability to maintain our current research and development programs and to establish new ones;

●

our ability to establish sales, licensing or collaboration arrangements;

●

the progress of the development efforts of parties with whom we may enter into collaboration arrangements;

●

the successful initiation and completion of clinical trials with safety, tolerability and efficacy profiles that are satisfactory to the FDA or any comparable foreign regulatory authority;

●

the receipt and related terms of regulatory approvals from applicable regulatory authorities;

●

the availability of materials for use in production of our Products and Product Candidates;

●

our ability to secure manufacturing supply through relationships with third parties or establish and operate a manufacturing facility;

●

our ability to consistently manufacture our Product Candidates in quantities sufficient for use in clinical trials;

●

our ability to obtain and maintain intellectual property protection and regulatory exclusivity, both in the United States and internationally;

●

our ability to maintain, enforce, defend and protect our rights in our intellectual property portfolio;

●

the commercialization of our Product Candidates, if and when approved, and of new Products;

●

our ability to obtain and maintain third-party payor coverage and adequate reimbursement for our Product Candidates, if approved;

●

the acceptance of our Product Candidates, if approved, by patients, the medical community and third-party payors;

●

competition with other products; and

●

a continued acceptable safety profile of our Product Candidates following receipt of any regulatory approvals.

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.

Research and development activities account for a significant portion of our operating expenses. Research and development expenses increased in the six months ended December 31, 2024, as compared to our six months ended December 31, 2023, primarily due to an increased level of work in support of our current programs. During the year, 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 into and through 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 research and development and commercial BayMedica activities. In addition, drug candidates in later stages of clinical development generally incur higher development costs than those in earlier stages of clinical development, primarily due to the increased size and duration of later-stage clinical trials. Accordingly, although we expect our research and development expenses to increase as our drug candidates advance into later stages of clinical development, we do not believe that it is possible, at this time, to accurately project total program-specific expenses through to commercialization. There are numerous factors associated with the successful commercialization of any of our Product Candidates, including future trial design and various regulatory requirements, many of which cannot be determined with accuracy at this time based on our stage of development.

General and Administrative Expenses

General and administrative expenses consist of personnel-related costs, including salaries, benefits and stock-based compensation expense, for our personnel in executive, finance and accounting, human resources, business operations and other administrative functions, investor relations activities, legal fees related to corporate matters, fees paid for accounting and tax services, consulting fees and facility-related costs.

Amortization and Depreciation

Intangible assets are comprised of intellectual property that we acquired in 2014 and 2015 and trade secrets, product formulation knowledge, 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.

Share-based Payments

Share-based payments are the stock-based compensation expense related to our granting of stock options to employees and others. The fair value, at the grant date, of equity-settled share awards is charged to our loss over the period for which the benefits of employees and others providing similar services are expected to be received. The vesting components of graded vesting employee awards are measured separately and expensed over the related tranche’s vesting period. The amount recognized as an expense is adjusted to reflect the number of share options expected to vest. The fair value of awards is calculated using the Black-Scholes option pricing model, which considers the exercise price, current market price of the underlying shares, expected life of the award, risk-free interest rate, expected volatility and the dividend yield.

Other Income

Other income consists primarily of interest income earned on our cash, cash equivalents and short-term investments.

Results of Operations

The Company has two operating and reportable segments based on the management approach which designates the internal reporting used by the CODM, the Company’s Chief Executive Officer and the senior management team, for making decisions and assessing performance as the source of the Company’s reportable segments. The CODM allocates resources and assesses the performance of each operating segment based on potential licensing opportunities, historical and potential future product sales, operating expenses, and operating income (loss) before interest and taxes. The Company has determined its reportable segments to be ‘InMed Pharma’ and ‘BayMedica Commercial’ based on the information used by the CODM.

Comparison of the three months ended December 31, 2024 and 2023 for InMed Pharma Segment

	Three Months Ended December 31,
	2024			2023			Change			% Change
	(in thousands)
Operating expenses:
Research and development and patents	$	1,056		$	567		$	489			86	%
General and administrative		1,333			1,164			169			15	%
Amortization and depreciation		53			55			(2	)		(4	)%
Foreign exchange (gain) loss		48			(60	)		108			(180	)%
Total operating expenses		2,490			1,726			764			44	%
Interest and other income		31			165			(134	)		(81	)%
Finance expense		(352	)		-			(352	)		(100	)%
Net loss	$	(2,811	)	$	(1,561	)	$	(1,250	)		80	%

Research and Development and Patents Expenses

Research and development and patents expenses increased by $489,000 in our InMed Pharma segment, or 86%, for the three months ended December 31, 2024, as compared to the three months ended December 31, 2023. The increase in research and development and patents expenses primarily resulted from an increase in external contractors relating to our INM-901 and INM-089 programs and patent fees, offset by a decrease in compensation expense. However, we expect our research and development expenses to increase significantly in future periods as we move closer towards clinical trials for the INM-901 and INM-089 programs which will result in higher costs related studies, drug supplies, and increased regulatory requirements, as we continue to implement our business strategy.

General and administrative expenses

General and administrative expenses increased by $169,000 in our InMed Pharma segment, or 15%, for the three months ended December 31, 2024, as compared to the three months ended December 31, 2023. The increase results primarily from a combination of changes including higher consulting fees, legal fees, and personnel expenses. This was offset by a decrease in lower office and administrative expenses.

Foreign exchange loss

The Company’s functional currency is the US dollar and our foreign exchange loss is predominantly due to transactions with foreign currency. Foreign exchange loss increased by $108,000 in our InMed Pharma segment, or 180%, for the three months ended December 31, 2024, as compared to the three months ended December 31, 2023, as a consequence of the Company holding non-U.S. denominated assets and liabilities combined with fluctuations in foreign exchange rates.

Finance expense

Finance expenses increased by $352,000 in our InMed Pharma segment, for the three months ended December 31, 2024, as compared to the three months ended December 31, 2023. The increase in finance expenses resulted from the fees incurred pursuant to the SEPA.

Comparison of the three months ended December 31, 2024 and 2023 for BayMedica Commercial Segment

	Three Months Ended December 31,
	2024		2023		Change			% Change
	(in thousands)
Sales	$	1,112	$	1,240	$	(128	)		(10	)%
Cost of sales		651		916		(265	)		(29	)%
Gross profit		461		324		137			42	%

Operating expenses:
Research and development and patents		5		43		(38	)		(88	)%
General and administrative		221		200		21			11	%
Amortization and depreciation		1		1		-			-
Total operating expenses		227		244		(17	)		(7	)%
Tax expense		-		1		(1	)		(100	)%
Net Income	$	234	$	81	$	153			189	%

Sales

Sales decreased by $128,000 in our BayMedica Commercial segment, or 10%, for the three months ended December 31, 2024, as compared to the three months ended December 31, 2023. The decrease in sales primarily resulted from the Company lowering product pricing due to increased competition. BayMedica will continue to evaluate opportunities for potential structured supply arrangements and collaborations for the commercial business. Sales and marketing efforts will remain focused on products that contribute the highest margins, where BayMedica continues to hold a strong competitive position.

Cost of Sales

Cost of goods sold decreased by $265,000 in our BayMedica Commercial segment, or 29%, for the three months ended December 31, 2024, as compared to the three months ended December 31, 2023. The decrease in cost of goods sold is primarily the result of a decrease in write-down of inventories to net realizable value during the three months ended December 31, 2024.

Comparison of the Six months ended December 31, 2024 and 2023 for InMed Pharma Segment

	Six Months Ended December 31,
	2024			2023			Change			% Change
	(in thousands)
Operating expenses:
Research and development and patents	$	1,819		$	1,839		$	(20	)		(1	)%
General and administrative		2,571			2,227			344			15	%
Amortization and depreciation		107			109			(2	)		(2	)%
Foreign exchange (gain) loss		28			(11	)		39			355	%
Total operating expenses		4,525			4,164			361			9	%
Interest and other income		88			301			(213	)		(71	)%
Finance expense		(352	)		-			(352	)		(100	)%
Net loss	$	(4,789	)		(3,863	)	$	(926	)		24	%

General and administrative expenses

General and administrative expenses increased by $344,000 in our InMed Pharma segment, or 15%, for the six months ended December 31, 2024, as compared to the six months ended December 31, 2023. The increase resulted primarily from a combination of changes including higher consulting fees, accounting and legal fees, personnel expenses, and investor relation expenses. This was offset by a decrease in lower office and administrative expenses.

Finance expense

Finance expenses increased by $352,000 in our InMed Pharma segment, for the six months ended December 31, 2024, as compared to the three months ended December 31, 2023. The increase in finance expenses resulted from the fees incurred pursuant to the SEPA.

Comparison of the six months ended December 31, 2024 and 2023 for BayMedica Commercial Segment

	Six Months Ended December 31,
	2024		2023			Change			% Change
	(in thousands)
Sales	$	2,376	$	2,142		$	234			11	%
Cost of sales		1,422		1,797			(375	)		(21	)%
Gross profit		954		345			609			177	%

Operating expenses:
Research and development and patents		13		63			(50	)		(79	)%
General and administrative		404		435			(31	)		(7	)%
Amortization and depreciation		1		1			-			-	%
Total operating expenses		418		499			(81	)		(16	)%
Tax expense		-		1			(1	)		(100	)%
Net Income	$	536	$	(153	)	$	689			450	%

Sales

Sales increased by $234,000 in our BayMedica Commercial segment, or 11%, for the six months ended December 31, 2024, as compared to the six months ended December 31, 2023. The increase in sales resulted from expanded marketing efforts and increased demand for certain cannabinoid products. BayMedica will continue to evaluate opportunities for potential structured supply arrangements and collaborations for the commercial business. Sales and marketing efforts will remain focused on products that are expected to contribute highest margins, where BayMedica continues to hold a strong competitive position.

Cost of Sales

Cost of goods sold decreased by $375,000 in our BayMedica Commercial segment, or 21%, for the six months ended December 31, 2024, as compared to the six months ended December 31, 2023. The decrease in cost of goods sold is primarily the result of a decrease in write-down of inventories to net realizable value during the six months ended December 31, 2024.

Liquidity and Capital Resources

Since our inception, we have incurred significant operating losses, generated limited revenue from product sales, and no sales from any other sources, and have negative cash flows from our operations. 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 our Common Shares.

As of December 31, 2024, we had cash, cash equivalents and short-term investments of $3.5 million.

The following table summarizes our cash flows for each of the periods presented:

(in thousands)	Six Months Ended December 31, 2024			Six Months Ended December 31, 2023
Net cash used in operating activities	$	(4,329	)	$	(4,022	)
Net cash used in investing activities		-			(9	)
Net cash provided by financing activities		1,177			4,653
Net (decrease) increase in cash and cash equivalents	$	(3,152	)	$	622

Operating Activities

During the six months ended December 31, 2024, we used cash in operating activities of $4.3 million, primarily resulting from our net loss of $4.3 million combined with a $218,000 decrease in changes in our non-cash working capital, partially offset by non-cash share-based compensation expenses and inventory write-down.

During the six months ended December 31, 2023, we used cash in operating activities of $4.0 million, primarily resulting from our net loss of $4.0 million combined with changes in our working capital and non-cash expenses contributing to net cash used in operating activities.

Investing Activities

During the six months ended December 31, 2023, cash used in investing activities of $9,291 resulted from the purchases and sale of short-term investments, as well as the purchase of property and equipment.

Financing Activities

During the six months ended December 31, 2024, cash provided by financing activities of $1.2 million consisted of $1.4 million in gross proceeds derived from the Amended ATM Agreement, offset by total transaction costs of $250,000. The Company’s Registration Statement on Form S-3 which was previously filed with the SEC in connection with the transactions contemplated by the Amended ATM Agreement expired on February 10, 2025.

During the six months ended December 31, 2023, cash provided by financing activities consisted of $4.7 million consisted of $5.2 million of gross proceeds from private placements of our common shares, offset by total transaction costs of $0.5 million.

Funding Requirements

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 any required investment into BayMedica’s research and development efforts targeting cannabinoid analogs. As a result, we expect to incur substantial operating losses and negative operating cash flows for the foreseeable future.

In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40), we have evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the unaudited condensed consolidated financial statements are issued.

Through December 31, 2024, we 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 $4.3 million and $4.0 million for the six months ended December 31, 2024 and 2023, respectively. In addition, we have an accumulated deficit of $113 million as of December 31, 2024. The Company expects to continue to generate operating losses for the foreseeable future.

As of the issuance date of these unaudited condensed consolidated financial statements, the Company expects its cash, cash equivalents and short-term investments of $3.5 million as of December 31, 2024 and the receipt of $2.9M in gross proceeds from financing activities which took place in January 2025 (refer to Note 7 – Share Capital and Reserves and Note 13 – Subsequent Events included in this Quarterly Report), to be sufficient to fund its operating expenses and capital expenditure requirements through the end of the second quarter of calendar 2025, depending on the level and timing of realizing BayMedica revenues from the sale of bulk rare cannabinoids in the ‘health & wellness’ sector as well as the level and timing of Company operating expenses. The future viability of the Company is dependent on its ability to raise additional capital to finance its operations. The Company has concluded that there is substantial doubt about its ability to continue as a going concern within one year after the date that the unaudited condensed consolidated financial statements are issued.

We expect to continue to seek additional funding through equity financings, debt financings or other capital sources, including collaborations with other companies, government contracts or other strategic transactions. We may not be able to obtain financing on acceptable terms, or at all. The terms of any financing may adversely affect the holdings or the rights of our existing shareholders.

Our funding requirements and timing and amount of our operating expenditures will depend largely on:

●

the scope, progress, results and costs of discovery research, preclinical development, laboratory testing and clinical trials for our Product Candidates;

●

the scope, progress, results and costs of development of our manufacturing technologies;

●

the number of and development requirements for other Products and Product Candidates that we pursue;

●

the costs, timing and outcome of regulatory review of our Product Candidates;

●

our ability to enter into contract manufacturing arrangements for supply of materials and manufacture of our Products and Product Candidates and the terms of such arrangements;

●

the impact of any acquired, or in-licensed, externally developed product(s) and/or technologies;

●

our ability to establish and maintain strategic collaborations, licensing or other arrangements, including sales arrangements, and the financial terms of such arrangements;

●

the sales, costs and timing of future commercialization activities, including product manufacturing, sales, marketing and distribution, for any of our Products and for Product Candidates for which we may receive marketing approval;

●

the costs and timing of preparing, filing and prosecuting patent applications, maintaining and enforcing our intellectual property and proprietary rights and defending any intellectual property- related claims;

●

expansion costs of our operational, financial and management systems and increases to our personnel, including personnel to support our clinical development, manufacturing and commercialization efforts and our operations as a dual listed company;

●

the costs to obtain, maintain, expand and protect our intellectual property portfolio; and

●

the level and timing of realizing revenues from the BayMedica commercial operations.

A change in the outcome of any of these, or other variables with respect to the development of any of our Products and Product Candidates, could significantly change the costs and timing associated with their development. We will need to continue to rely on additional financing to achieve our business objectives.

In addition to the variables described above, if and when any of our Product Candidates successfully complete development, we will incur substantial additional costs associated with regulatory filings, marketing approval, post-marketing requirements, maintaining our intellectual property rights, and regulatory protection, in addition to other commercial costs. We cannot reasonably estimate these costs at this time.

Until such time, if ever, as we can generate substantial revenues from either our Products or Product Candidates, we expect to finance our cash needs through a combination of equity or debt financings and collaboration arrangements. We currently have no credit facility or committed sources of capital. To the extent that we raise additional capital through the future sale of equity securities, the ownership interests of our shareholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our existing common shareholders. If we raise additional funds through the issuance of debt securities, these securities could contain covenants that would restrict our operations. We may require additional capital beyond our currently anticipated amounts, and additional capital may not be available on reasonable terms, or at all. If we raise additional funds through collaboration arrangements or other strategic transactions in the future, we may have to relinquish valuable rights to our technologies, future revenue streams, Products or Product Candidates, or grant licenses on terms that may not be favorable to us. If we are unable to raise additional funds through equity or debt financings when needed, we may be required to delay, limit, reduce or terminate development or future commercialization efforts or grant rights to develop and market Products or Product Candidates that we would otherwise prefer to develop and market ourselves.

Off-Balance Sheet Arrangements

During the periods presented, we did not have, and we do not currently have, any off-balance sheet arrangements, as defined in the rules and regulations promulgated by the SEC.

Critical Accounting Policies and Significant Judgments and Estimates

Our significant accounting policies are described in Note 2 of the Financial Statements. The estimates will require us to rely upon assumptions that were highly uncertain at the time the accounting estimates are made, and changes in them are reasonably likely to occur from period to period. Changes in estimates used in these and other items could have a material impact on our financial statements in the future. Our estimates will be based on our experience and our interpretation of economic, political, regulatory, and other factors that affect our business prospects. Actual results may differ significantly from our estimates. For detailed information regarding our critical accounting policies and estimates, see our financial statements and notes thereto included in this Report and in our 2024 Annual Report. There have been no material changes to our critical accounting policies and estimates from those disclosed in our 2024 Annual Report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and, as such, are not required to provide the information under this Item.

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures as of December 31, 2024. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to its management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of December 31, 2024, our principal executive officer and principal financial officer concluded that, as of such date, our disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the six-month period ended December 31, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II

ITEM 1. LEGAL PROCEEDINGS.

We are not presently involved in any active legal proceedings that we believe to be material to the Company. However, from time to time, we may be subject to various pending or threatened legal actions, claims and proceedings, including those that arise in the ordinary course of our business (including, but not limited to, the matters discussed in Note 11 of the unaudited condensed consolidated financial statements included in this Quarterly Report).

ITEM 1A. RISK FACTORS.

Reference is made to Part I, Item 1A, “Risk Factors” included in the 2024 Annual Report for information concerning risk factors, which should be read in conjunction with the factors set forth in “Cautionary Statement Regarding Forward-Looking Statements” of this Report. There have been no material changes with respect to the risk factors disclosed in our 2024 Annual Report, except as set forth below. You should carefully consider such factors in the 2024 Annual Report, and below, which could materially affect our business, financial condition or future results. The risks described in the 2024 Annual Report and below, are not exhaustive and therefore, there are additional risks facing the Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

We may require additional financing, and a failure to obtain this necessary capital when needed could force us to delay, limit, or reduce our investments in advertising and other strategic initiatives planned for future growth.

On December 13, 2024, we entered the SEPA with the Investor, whereby we have the right, but not the obligation, to sell to the Investor Common Shares up to the Commitment Amount during the 36-month period following the Effective Date, subject to certain conditions. The Common Shares that may be issued under the SEPA may be sold by us to the Investor at our discretion from time to time and sales of Common Shares under the SEPA will depend upon market conditions and other factors. Additionally, in no event may we sell and issue the aggregate number of Common Shares that is equal to or in excess of the Exchange Cap, unless we obtain shareholder approval to issue Common Shares in excess of the Exchange Cap in accordance with applicable Nasdaq rules and comply with certain other requirements as described in the SEPA. We are unable to predict or provide assurances as of the date of this Quarterly Report that such shareholder approval would be obtained on a timely manner, if at all. As a result, unless our stock price exceeds $5.15, we will be unable to sell the full Commitment Amount to the Investor without seeking stockholder approval to issue additional Common Shares in excess of the Exchange Cap. In addition, the issuance of Common Shares under the SEPA is subject to further limitations, including that the Common Shares beneficially owned by the Investor and its affiliates will not exceed 9.99%, in the aggregate.

We may ultimately decide to sell all or some of the Common Shares that may be available for us to sell pursuant to the SEPA. Because the purchase price per share to be paid by the Investor for the Common Shares that we may elect to sell under the SEPA will fluctuate based on the market prices of our Common Shares during the applicable pricing period for each of those sales, it is not possible for us to predict, as of the date of this Quarterly Report and prior to any such sales, the number of Common Shares that we will sell under the SEPA, the purchase price per share or the aggregate gross proceeds that we will receive from those purchases under the SEPA. Further, the resale by the Investor of a significant number of Common Shares at any given time, or the perception that such sales may or are likely to occur, could cause the market price of our Common Shares to materially decline and be highly volatile.

Accordingly, due to the foregoing, we may not have access to the full Commitment Amount unless the market price of our Common Shares remains stable throughout the term of the SEPA. Any significant decrease to the price of our Common Shares could materially limit our ability to sell the full Commitment Amount to the Investor. If the aggregate selling price of our Common Shares under the SEPA is below $5.15, it is possible that we may not be permitted to draw the full amount of proceeds of the drawdown request from the Investor, which may not provide adequate funding for our planned operations and may materially decrease our liquidity.

The transition to a new presidential administration in the United States, including the potential use and effects of tariffs to address the administration’s policy goals, could materially impact the macroeconomic framework in which we operate.

The transition to a new presidential administration in the United States could impact the macroeconomic framework in which we operate, and we are unable to precisely predict what actions the new administration will take. For example, on February 1, 2025, the current U.S. presidential administration announced the implementation of a 25% additional tariff on imports from Canada. While the administration agreed to put a 30-day pause on the implementation of such tariffs, such tariffs may ultimately be re-implemented in the event that the United States and Canada are ultimately unable to agree to economic terms. Any trade wars, through the implementation of tariffs or otherwise, has the potential to adversely affect us, including by impacting (a) the supply chains for our operations as well as the third parties with whom we engage, and (b) the macroeconomic markets at large.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURE.

None

ITEM 5. OTHER INFORMATION.

Rule 10b5-1 Plan and Non-Rule 10b5-1 Trading Arrangement Adoptions, Terminations, and Modifications

During the six months ended December 31, 2024, none of our directors or “officers” (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

Annual General Meeting – Director Resignation

At the 2024 AGM, the Company’s shareholders withheld the election of one nominee, Ms. Janet Grove, from being appointed as a member of the Board, in accordance with the Company’s Majority Voting Policy. As a result, Ms. Grove offered her resignation to the Board, and the Company’s Nominating & Governance Committee, in accordance with the Majority Voting Policy, considered her resignation and ultimately recommended to the Board to accept Ms. Grove’s resignation. On February 10, 2024, the Board elected to accept Ms. Grove’s resignation. The Board intends to initiate a search for an independent director to replace Ms. Grove as soon as reasonably practicable. In the interim, the Board will continue to operate with the remaining four directors, and each committee of the Board will be comprised of the three independent directors who were re-appointed for directorship at the 2024 AGM. The Board Chair will assume the role of Chair of the Nominating & Governance Committee.

ITEM 6. EXHIBITS.

Exhibits

The following exhibits are filed as part of this report:

Exhibit Number		Description
10.1		Standby Equity Purchase Agreement, dated December 13, 2024, between InMed Pharmaceuticals Inc. and YA II PN, Ltd. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on December 18, 2024).

31.1*		Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended

31.2*		Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended

32.1*		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2*		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS*		Inline XBRL Instance Document.

101.SCH*		Inline XBRL Taxonomy Extension Schema Document.

101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104*		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*	Filed herewith.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	INMED PHARMACEUTICALS INC.
	(Registrant)

Dated: February 12, 2025	By:	/s/ Netta Jagpal
		Chief Financial Officer

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Exhibit 31.1

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Eric A. Adams, certify that:

I have reviewed this Quarterly Report on Form 10-Q of InMed Pharmaceuticals Inc.;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 12, 2025

	/s/ Eric A. Adams
	Name:	Eric A. Adams
	Title:	President and Chief Executive Officer

Exhibit 31.2

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Netta Jagpal, certify that:

I have reviewed this Quarterly Report on Form 10-Q of InMed Pharmaceuticals Inc.;

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 12, 2025

	/s/ Netta Jagpal
	Name:	Netta Jagpal
	Title:	Chief Financial Officer

Exhibit 32.1

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Eric A. Adams, the President and Chief Executive Officer of InMed Pharmaceuticals Inc. (the “Company”), hereby certify that, to my knowledge:

The Quarterly Report on Form 10-Q for the quarter ended December 31, 2024 (the “Report”) of the Company fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 12, 2025

	/s/ Eric A. Adams
	Name:	Eric A. Adams
	Title:	President and Chief Executive Officer

Exhibit 32.2

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Netta Jagpal, the Chief Financial Officer of InMed Pharmaceuticals Inc. (the “Company”), hereby certify that, to my knowledge:

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 12, 2025

	/s/ Netta Jagpal
	Name:	Netta Jagpal
	Title:	Chief Financial Officer

Cover - shares	6 Months Ended
Cover - shares	Dec. 31, 2024	Feb. 07, 2025
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Dec. 31, 2024
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q2
Entity Information [Line Items]
Entity Registrant Name	INMED PHARMACEUTICALS INC.
Entity Central Index Key	0001728328
Entity File Number	001-39685
Entity Tax Identification Number	98-1428279
Entity Incorporation, State or Country Code	A1
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Incorporation, Date of Incorporation	May 19, 1981
Entity Contact Personnel [Line Items]
Entity Address, Address Line One	Suite 1445 - 885 W. Georgia Street
Entity Address, Address Line Two	Vancouver
Entity Address, City or Town	B.C
Entity Address, Country	CA
Entity Address, Postal Zip Code	V6C 3E8
Entity Phone Fax Numbers [Line Items]
City Area Code	(604)
Local Phone Number	669-7207
Entity Listings [Line Items]
Title of 12(b) Security	Common Shares, no par value
Trading Symbol	INM
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		1,207,186

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2024	Jun. 30, 2024
Current
Cash and cash equivalents	$ 3,419,422	$ 6,571,610
Short-term investments	40,787	43,064
Accounts receivable (less provision for credit losses of $nil in each of December 31, 2024 and June 30, 2024)	262,569	352,838
Inventories, net	1,103,356	1,244,324
Prepaids and other current assets	643,986	477,749
Total current assets	5,470,120	8,689,585
Non-Current
Property, equipment and operating lease right-of-use (“ROU”) assets, net	1,230,961	1,249,999
Intangible assets, net	1,701,211	1,783,198
Other assets	100,000	100,000
Total Assets	8,502,292	11,822,782
Current
Accounts payable and accrued liabilities	1,371,233	1,654,011
Current portion of operating lease obligations	419,711	317,797
Total current liabilities	1,790,944	1,971,808
Non-current
Operating lease obligations, net of current portion	529,248	644,865
Total Liabilities	2,320,192	2,616,673
Commitments and Contingencies (Note 11)
Shareholders’ Equity
Common Shares, unlimited authorized shares: 724,152 and 445,908, as of December 31, 2024 and June 30, 2024, respectively, issued and outstanding	84,537,194	82,784,400
Additional paid-in capital	34,844,988	35,368,899
Accumulated deficit	(113,328,651)	(109,075,759)
Accumulated other comprehensive income	128,569	128,569
Total Shareholders’ Equity	6,182,100	9,206,109
Total Liabilities and Shareholders’ Equity	$ 8,502,292	$ 11,822,782

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2024	Jun. 30, 2024
Statement of Financial Position [Abstract]
Accounts receivable less provision for credit losses (in Dollars)
Common shares, unlimited authorized	Unlimited	Unlimited
Common shares, shares issued	724,152	445,908
Common shares, shares outstanding	724,152	445,908

Condensed Consolidated Statements of Operations Unaudited - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Income Statement [Abstract]
Sales	$ 1,111,707	$ 1,240,200	$ 2,376,345	$ 2,142,062
Cost of sales	650,813	916,058	1,422,038	1,796,678
Gross profit	460,894	324,142	954,307	345,384
Operating Expenses
Research and development and patents	1,060,367	609,791	1,831,547	1,901,884
General and administrative	1,553,583	1,363,958	2,975,509	2,662,689
Amortization and depreciation	53,202	55,234	107,781	110,066
Foreign exchange loss (gain)	47,753	(59,896)	28,443	(11,439)
Total operating expenses	2,714,905	1,969,087	4,943,280	4,663,200
Other Income (Expense)
Interest and other income	30,536	166,760	87,630	302,803
Finance expense	(351,549)		(351,549)
Loss before income taxes	(2,575,024)	(1,478,185)	(4,252,892)	(4,015,013)
Tax expense
Net loss for the period	$ (2,575,024)	$ (1,478,185)	$ (4,252,892)	$ (4,015,013)
Net loss per share for the period
Basic (in Dollars per share)	$ (3.64)	$ (3.71)	$ (6.43)	$ (14.21)
Diluted (in Dollars per share)	$ (3.64)	$ (3.71)	$ (6.43)	$ (14.21)
Weighted average outstanding common shares
Basic (in Shares)	706,546	398,673	661,052	282,541
Diluted (in Shares)	706,546	398,673	661,052	282,541

Condensed Consolidated Statements of Shareholders’ Equity Unaudited - USD ($)	Common Shares	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	Total
Balance at Jun. 30, 2023	$ 77,620,252	$ 35,741,115	$ (101,400,209)	$ 128,569	$ 12,089,727
Balance (in Shares) at Jun. 30, 2023	166,410
Loss for the period			(2,536,828)		(2,536,828)
Share-based compensation		25,191			25,191
Balance at Sep. 30, 2023	$ 77,620,252	35,766,306	(103,937,037)	128,569	(9,578,090)
Balance (in Shares) at Sep. 30, 2023	166,410
Balance at Jun. 30, 2023	$ 77,620,252	35,741,115	(101,400,209)	128,569	12,089,727
Balance (in Shares) at Jun. 30, 2023	166,410
Loss for the period					(4,015,013)
Balance at Dec. 31, 2023	$ 79,936,633	38,122,231	(105,415,222)	128,569	12,772,211
Balance (in Shares) at Dec. 31, 2023	283,399
Balance at Sep. 30, 2023	$ 77,620,252	35,766,306	(103,937,037)	128,569	(9,578,090)
Balance (in Shares) at Sep. 30, 2023	166,410
Private placement	$ 2,316,381	2,899,812			5,216,193
Private placement (in Shares)	116,989
Share issuance costs		(562,151)			(562,151)
Loss for the period			(1,478,185)		(1,478,185)
Share-based compensation		18,264			18,264
Balance at Dec. 31, 2023	$ 79,936,633	38,122,231	(105,415,222)	128,569	12,772,211
Balance (in Shares) at Dec. 31, 2023	283,399
Balance at Jun. 30, 2024	$ 82,784,400	35,368,899	(109,075,759)	128,569	$ 9,206,109
Balance (in Shares) at Jun. 30, 2024	445,908				445,908
Private placement	$ 1,030,063				$ 1,030,063
Private placement (in Shares)	186,361
Share issuance costs	$ (191,824)				(191,824)
Exercise of pre-funded warrants	$ 576,034	(576,034)
Exercise of pre-funded warrants (in Shares)	34,700
Loss for the period			(1,677,868)		(1,677,868)
Share-based compensation		28,964			28,964
Balance at Sep. 30, 2024	$ 84,198,673	34,821,829	(110,753,627)	128,569	8,395,444
Balance (in Shares) at Sep. 30, 2024	666,969
Balance at Jun. 30, 2024	$ 82,784,400	35,368,899	(109,075,759)	128,569	$ 9,206,109
Balance (in Shares) at Jun. 30, 2024	445,908				445,908
Loss for the period					$ (4,252,892)
Balance at Dec. 31, 2024	$ 84,537,194	34,844,988	(113,328,651)	128,569	$ 6,182,100
Balance (in Shares) at Dec. 31, 2024	724,152				724,152
Balance at Sep. 30, 2024	$ 84,198,673	34,821,829	(110,753,627)	128,569	$ 8,395,444
Balance (in Shares) at Sep. 30, 2024	666,969
Private placement	$ 396,153				396,153
Private placement (in Shares)	57,183
Share issuance costs	$ (57,632)				(57,632)
Loss for the period			(2,575,024)		(2,575,024)
Share-based compensation		23,159			23,159
Balance at Dec. 31, 2024	$ 84,537,194	$ 34,844,988	$ (113,328,651)	$ 128,569	$ 6,182,100
Balance (in Shares) at Dec. 31, 2024	724,152				724,152

Condensed Consolidated Statements of Cash Flows Unaudited - USD ($)	6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Operating Activities
Net loss	$ (4,252,892)	$ (4,015,013)
Items not requiring cash:
Amortization and depreciation	107,782	110,063
Share-based compensation	52,123	43,455
Amortization of ROU assets	166,277	191,909
Interest income received on short-term investments	(874)	(1,019)
Unrealized foreign exchange loss	20,338	978
Inventory write-down		263,404
Changes in operating assets and liabilities:
Inventories	140,968	608,113
Prepaids and other currents assets	(166,237)	(614,944)
Other non-current assets		4,908
Accounts receivable	90,269	(112,470)
Accounts payable and accrued liabilities	(282,778)	(321,106)
Deferred rent		12,485
Operating lease obligations	(203,924)	(193,109)
Total cash used in operating activities	(4,328,948)	(4,022,346)
Investing Activities
Sale of short-term investments	24,002	21,317
Purchase of short-term investments	(24,002)	(21,317)
Purchase of property and equipment		(9,291)
Total cash used in investing activities		(9,291)
Financing Activities
Proceeds from the private placement	1,426,216	5,216,193
Private placement issuance costs	(249,456)	(562,151)
Total cash provided by financing activities	1,176,760	4,654,042
(Decrease) increase in cash during the period	(3,152,188)	622,405
Cash and cash equivalents beginning of the period	6,571,610	8,912,517
Cash and cash equivalents end of the period	3,419,422	9,534,922
Cash Paid During the Period for:
Income Taxes
Interest
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Fair value of warrant modification recorded as equity issuance costs		3,508,749
Preferred investment options to its placement agent		325,699
Recognition of ROU asset and corresponding operating lease liability	$ 187,223	$ 968,376

Corporate Information and Continuing Operations

6 Months Ended

Dec. 31, 2024

Corporate Information and Continuing Operations [Abstract]

CORPORATE INFORMATION AND CONTINUING OPERATIONS

1.	CORPORATE INFORMATION AND CONTINUING OPERATIONS

Business

Going Concern

Significant Accounting Policies

6 Months Ended

Dec. 31, 2024

Significant Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

2.	SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Reclassifications

Use of Estimates

Actual results could differ from those estimates.

Basis of Consolidation

Foreign Currency

Cash and Cash Equivalents

Short-term Investments

Accounts Receivable

Concentration of Credit Risk and Other Risks and Uncertainties

The Company’s customers are primarily concentrated in the United States.

Concentration of customers

The following tables summarizes the information about the Company’s concentration of customers:

	Customer A			Customer B			Customer C			Customer D			Customer E

Three Months Ended December 31, 2024
Revenues, customer concentration risk		34	%		33	%		13	%		*			*

Three Months Ended December 31, 2023
Revenues, customer concentration risk		*			20	%		52	%		*			*

Six Months Ended December 31, 2024
Revenues, customer concentration risk		28	%		25	%		17	%		*			12	%

Six Months Ended December 31, 2023
Revenues, customer concentration risk		11	%		13	%		44	%		14	%		10	%

As of December 31, 2024
Accounts receivable, customer concentration risk		52	%		38	%		*			*			11	%

As of June 30, 2024
Accounts receivable, customer concentration risk		32	%		20	%		15	%		15	%		14	%

*	Less than 10%.

Inventories

In determining any valuation allowances, the Company reviews inventory for obsolete, redundant, and slow-moving goods.

Property, Equipment and ROU Assets, Net

	●	Computer equipment — 5 years

	●	Lab equipment — 6 - 10 years

●

Furnishings — 5 years

Computer equipment, lab equipment and furnishings, acquired or disposed of during the year, are depreciated proportionately for the period they are in use.

Intangible Assets, Net

Impairment of Long-Lived Assets

Fair Value Measurements

Financial Assets

Financial Liabilities

Level 1 –

Unadjusted quoted prices in active markets for identical instruments.

Level 2 –

Level 3 –

Revenue Recognition

Cost of Sales

Shipping and Handling

Earnings (Loss) Per Share

The following table sets forth the number of potential Common Shares that have been excluded from diluted net income (loss) per because their effect was anti-dilutive:

	As of December 31,
	2024		2023
Options		62,416		3,621
Warrants		509,580		509,602
		571,996		512,923

Share-based Payments

Research and Development Costs

Patents and Intellectual Property Costs

Segment Reporting

The Company’s operations consist of two operating and reportable segments, the “InMed Pharma” segment and the “BayMedica Commercial” segment.

Leases

Recent Accounting Pronouncements

Inventories

6 Months Ended

Dec. 31, 2024

Inventories [Abstract]

INVENTORIES

3.	INVENTORIES

Inventories consisted of the following:

	December 31, 2024		June 30, 2024
	$		$
Raw materials		172,200		372,695
Work in process		255,992		30,817
Finished goods		675,164		840,812
Inventories		1,103,356		1,244,324

Property, Equipment and Rou Assets, Net

6 Months Ended

Dec. 31, 2024

Property, Equipment and ROU Assets, Net [Abstract]

PROPERTY, EQUIPMENT AND ROU ASSETS, NET

4.	PROPERTY, EQUIPMENT AND ROU ASSETS, NET

Property, equipment and ROU assets consisted of the following:

	December 31, 2024			June 30, 2024
	$			$
ROU Assets (leases)		1,901,692			2,135,811
Equipment		429,091			429,090
Furnishings		40,409			40,409
Property and equipment		2,371,192			2,605,310
Less: accumulated depreciation and amortization		(1,140,231	)		(1,355,311	)
Property, equipment and ROU assets, net		1,230,961			1,249,999

Intangible Assets

6 Months Ended

Dec. 31, 2024

Intangible Assets [Abstract]

INTANGIBLE ASSETS

5.	INTANGIBLE ASSETS

The following table summarizes the Company’s intangible assets:

	December 31, 2024			June 30, 2024
	$			$
Intellectual property		1,736,420			1,736,420
Patents		1,191,000			1,191,000
Intangible assets		2,927,420			2,927,420
Less: accumulated amortization		(1,226,209	)		(1,144,222	)
Intangible assets, net		1,701,211			1,783,198

Year ending June 30,	$
2025 (remaining)		81,373
2026		162,746
2027		162,746
2028		162,746
2029		162,746
Thereafter		968,854
Total		1,701,211

Accounts Payable and Accrued Liabilities

6 Months Ended

Dec. 31, 2024

Accounts Payable and Accrued Liabilities [Abstract]

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

6.	ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities consist of the following:

	December 31, 2024		June 30, 2024
	$		$
Trade payables		574,563		626,190
Accrued research and development expenses		249,784		242,066
Inventory related accruals		12,250		41,004
Employee compensation, benefits and related accruals		337,236		488,278
Accrued general and administrative expenses		197,400		256,473
Accounts payable and accrued liabilities		1,371,233		1,654,011

Share Capital and Reserves

6 Months Ended

Dec. 31, 2024

Share Capital and Reserves [Abstract]

SHARE CAPITAL AND RESERVES

7.	SHARE CAPITAL AND RESERVES

Authorized

Common Share Warrants

The Company did not grant any warrants during the six months ended December 31, 2024.

A summary of the Company’s warrant activity and related information for the periods covered were as follows:

	Number of Shares Under Warrants			Weighted Average Exercise Price
Balance as at June 30, 2024		544,280		$	20.40
Warrants Granted		-			-
Exercised		(34,700	)		-
Expire/Cancelled		-			-
Warrants Outstanding as at December 31, 2024		509,580		$	30.18

Warrants Exercisable as at December 31, 2024		509,580		$	30.18

Share-Based Payments

6 Months Ended

Dec. 31, 2024

Share-Based Payments [Abstract]

SHARE-BASED PAYMENTS

8.	SHARE-BASED PAYMENTS

Option Plan Details

On December 20, 2024, the Company granted 28,700 stock options to its employees and external directors.

	2024			2023
Exercise price	$	4.14		$	7.4
Risk-free interest rate		4.21	%		3.95	%
Volatility		125	%		203	%
Expected life (years)		3.4			3.6
Dividend yield		0	%		0	%

The following is a summary of changes in outstanding options from July 1, 2024 to December 31, 2024 :

	Number			Weighted Average Exercise Price
Balance at July 1, 2024		33,722		$	56.68
Granted		28,700			4.14
Expired/Forfeited		(6	)		2,866.46
Balance at December 31, 2024		62,416		$	32.25
December 31, 2024:
Vested and exercisable		15,240		$	115.32
Unvested		47,176		$	5.42

Lease Obligations

6 Months Ended

Dec. 31, 2024

Lease Obligations [Abstract]

LEASE OBLIGATIONS

9.	LEASE OBLIGATIONS

The Company is committed to minimum operating lease payments as follows:

Maturity Analysis	June 30,
	$
2025		230,141
2026		469,194
2027		313,230
2028		-
2029		-
Total undiscounted operating lease liabilities		1,012,565
Less: imputed interest		(63,606	)
Present value of operating lease liabilities		948,959

Less: Current portion of operating lease liabilities		(419,711	)
Non-current portion of operating lease liabilities		529,248

Segment Information

6 Months Ended

Dec. 31, 2024

Segment Information [Abstract]

SEGMENT INFORMATION

10.

SEGMENT INFORMATION

The following table presents information about the Company’s reportable segments for the three months ended December 31, 2024 and 2023:

	Three Months Ended December 31,
	2024									2023
	InMed			BayMedica			Total			InMed			BayMedica			Total
	$			$			$			$			$			$
Sales		-			1,111,707			1,111,707			-			1,240,200			1,240,200
Cost of sales		-			(650,813	)		(650,813	)		-			(916,058	)		(916,058	)
Research and development patents		(1,055,704	)		(4,663	)		(1,060,367	)		(567,139	)		(42,652	)		(609,791	)
General and Administrative		(1,332,919	)		(220,664	)		(1,553,583	)		(1,163,562	)		(200,396	)		(1,363,958	)
Amortization and depreciation		(52,603	)		(599	)		(53,202	)		(54,636	)		(598	)		(55,234	)
Foreign exchange gain (loss)		(47,753	)		-			(47,753	)		59,896			-			59,896
Interest and other income		30,536			-			30,536			165,383			1,377			166,760
Finance expense		(351,549	)		-			(351,549	)		-			-			-
Net Income (Loss)		(2,809,992	)		234,968			(2,575,024	)		(1,560,058	)		81,873			(1,478,185	)

The following table presents information about the Company’s reportable segments for the six months ended December 31, 2024 and 2023:

	Six Months Ended December 31,
	2024									2023
	InMed			BayMedica			Total			InMed			BayMedica			Total
	$			$			$			$			$			$
Sales		-			2,376,345			2,376,345			-			2,142,062			2,142,062
Cost of sales		-			(1,422,038	)		(1,422,038	)		-			(1,796,678	)		(1,796,678	)
Research and development patents		(1,818,578	)		(12,969	)		(1,831,547	)		(1,838,578	)		(63,306	)		(1,901,884	)
General and Administrative		(2,571,100	)		(404,409	)		(2,975,509	)		(2,227,222	)		(435,467	)		(2,662,689	)
Amortization and depreciation		(106,583	)		(1,198	)		(107,781	)		(108,877	)		(1,189	)		(110,066	)
Foreign exchange gain (loss)		(28,443	)		-			(28,443	)		11,439			-			11,439
Interest and other income		87,630			-			87,630			301,426			1,377			302,803
Finance expense		(351,549	)		-			(351,549	)		-			-			-
Net Income (Loss)		(4,788,623	)		535,731			(4,252,892	)		(3,861,812	)		(153,201	)		(4,015,013	)
Cash and Cash Equivalents		2,893,016			526,406			3,419,422			8,226,917			1,308,005			9,534,922

Commitments and Contingencies

6 Months Ended

Dec. 31, 2024

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

11.

COMMITMENTS AND CONTINGENCIES

Related Party Transactions

6 Months Ended

Dec. 31, 2024

RELATED PARTY TRANSACTIONS

12.

RELATED PARTY TRANSACTIONS

Subsequent Events

6 Months Ended

Dec. 31, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

13.

SUBSEQUENT EVENTS

In January 2025, the Company issued 413,336 Common Shares for gross proceeds of $2,455,600 pursuant to the terms of the SEPA.

In January 2025, the Company issued 69,698 Common Shares for gross proceeds of $479,400 pursuant to the terms of the Amended ATM Agreement.

Pay vs Performance Disclosure - USD ($)	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($)	Dec. 31, 2024	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2024	Dec. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (2,575,024)	$ (1,677,868)	$ (1,478,185)	$ (2,536,828)	$ (4,252,892)	$ (4,015,013)

Insider Trading Arrangements	6 Months Ended
Insider Trading Arrangements	Dec. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accounting Policies, by Policy (Policies)

6 Months Ended

Dec. 31, 2024

Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Reclassifications

Reclassifications

Use of Estimates

Use of Estimates

Actual results could differ from those estimates.

Basis of Consolidation

Basis of Consolidation

Foreign Currency

Foreign Currency

Cash and Cash Equivalents

Cash and Cash Equivalents

Short-term Investments

Short-term Investments

Accounts Receivable

Accounts Receivable

Concentration of Credit Risk and Other Risks and Uncertainties

Concentration of Credit Risk and Other Risks and Uncertainties

The Company’s customers are primarily concentrated in the United States.

Concentration of customers

The following tables summarizes the information about the Company’s concentration of customers:

	Customer A			Customer B			Customer C			Customer D			Customer E

Three Months Ended December 31, 2024
Revenues, customer concentration risk		34	%		33	%		13	%		*			*

Three Months Ended December 31, 2023
Revenues, customer concentration risk		*			20	%		52	%		*			*

Six Months Ended December 31, 2024
Revenues, customer concentration risk		28	%		25	%		17	%		*			12	%

Six Months Ended December 31, 2023
Revenues, customer concentration risk		11	%		13	%		44	%		14	%		10	%

As of December 31, 2024
Accounts receivable, customer concentration risk		52	%		38	%		*			*			11	%

As of June 30, 2024
Accounts receivable, customer concentration risk		32	%		20	%		15	%		15	%		14	%

*	Less than 10%.

Inventories

Inventories

In determining any valuation allowances, the Company reviews inventory for obsolete, redundant, and slow-moving goods.

Property, Equipment and ROU Assets, Net

Property, Equipment and ROU Assets, Net

	●	Computer equipment — 5 years

	●	Lab equipment — 6 - 10 years

●

Furnishings — 5 years

Computer equipment, lab equipment and furnishings, acquired or disposed of during the year, are depreciated proportionately for the period they are in use.

Intangible Assets, Net

Intangible Assets, Net

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Fair Value Measurements

Fair Value Measurements

Financial Assets

Financial Liabilities

Level 1 –

Unadjusted quoted prices in active markets for identical instruments.

Level 2 –

Level 3 –

Revenue Recognition

Revenue Recognition

Cost of Sales

Cost of Sales

Shipping and Handling

Shipping and Handling

Earnings (Loss) Per Share

Earnings (Loss) Per Share

The following table sets forth the number of potential Common Shares that have been excluded from diluted net income (loss) per because their effect was anti-dilutive:

	As of December 31,
	2024		2023
Options		62,416		3,621
Warrants		509,580		509,602
		571,996		512,923

Share-based Payments

Share-based Payments

Research and Development Costs

Research and Development Costs

Patents and Intellectual Property Costs

Patents and Intellectual Property Costs

Segment reporting

Segment Reporting

The Company’s operations consist of two operating and reportable segments, the “InMed Pharma” segment and the “BayMedica Commercial” segment.

Leases

Leases

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Significant Accounting Policies (Tables)

6 Months Ended

Dec. 31, 2024

Significant Accounting Policies [Abstract]

Schedule of Concentration of Customers

The following tables summarizes the information about the Company’s concentration of customers:

	Customer A			Customer B			Customer C			Customer D			Customer E

Three Months Ended December 31, 2024
Revenues, customer concentration risk		34	%		33	%		13	%		*			*

Three Months Ended December 31, 2023
Revenues, customer concentration risk		*			20	%		52	%		*			*

Six Months Ended December 31, 2024
Revenues, customer concentration risk		28	%		25	%		17	%		*			12	%

Six Months Ended December 31, 2023
Revenues, customer concentration risk		11	%		13	%		44	%		14	%		10	%

As of December 31, 2024
Accounts receivable, customer concentration risk		52	%		38	%		*			*			11	%

As of June 30, 2024
Accounts receivable, customer concentration risk		32	%		20	%		15	%		15	%		14	%

*	Less than 10%.

Schedule of Potential Common Shares

The following table sets forth the number of potential Common Shares that have been excluded from diluted net income (loss) per because their effect was anti-dilutive:

	As of December 31,
	2024		2023
Options		62,416		3,621
Warrants		509,580		509,602
		571,996		512,923

Inventories (Tables)

6 Months Ended

Dec. 31, 2024

Inventories [Abstract]

Schedule of Inventories

Inventories consisted of the following:

	December 31, 2024		June 30, 2024
	$		$
Raw materials		172,200		372,695
Work in process		255,992		30,817
Finished goods		675,164		840,812
Inventories		1,103,356		1,244,324

Property, Equipment and Rou Assets, Net (Tables)

6 Months Ended

Dec. 31, 2024

Property, Equipment and ROU Assets, Net [Abstract]

Schedule of Property, Equipment and ROU Assets

Property, equipment and ROU assets consisted of the following:

	December 31, 2024			June 30, 2024
	$			$
ROU Assets (leases)		1,901,692			2,135,811
Equipment		429,091			429,090
Furnishings		40,409			40,409
Property and equipment		2,371,192			2,605,310
Less: accumulated depreciation and amortization		(1,140,231	)		(1,355,311	)
Property, equipment and ROU assets, net		1,230,961			1,249,999

Intangible Assets (Tables)

6 Months Ended

Dec. 31, 2024

Intangible Assets [Abstract]

Schedule of Intangible Assets

The following table summarizes the Company’s intangible assets:

	December 31, 2024			June 30, 2024
	$			$
Intellectual property		1,736,420			1,736,420
Patents		1,191,000			1,191,000
Intangible assets		2,927,420			2,927,420
Less: accumulated amortization		(1,226,209	)		(1,144,222	)
Intangible assets, net		1,701,211			1,783,198

Schedule of Expects Amortization Expense

The Company expects amortization expense to be incurred over the next five years as follows:

Year ending June 30,	$
2025 (remaining)		81,373
2026		162,746
2027		162,746
2028		162,746
2029		162,746
Thereafter		968,854
Total		1,701,211

Accounts Payable and Accrued Liabilities (Tables)

6 Months Ended

Dec. 31, 2024

Accounts Payable and Accrued Liabilities [Abstract]

Schedule of Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of the following:

	December 31, 2024		June 30, 2024
	$		$
Trade payables		574,563		626,190
Accrued research and development expenses		249,784		242,066
Inventory related accruals		12,250		41,004
Employee compensation, benefits and related accruals		337,236		488,278
Accrued general and administrative expenses		197,400		256,473
Accounts payable and accrued liabilities		1,371,233		1,654,011

Share Capital and Reserves (Tables)

6 Months Ended

Dec. 31, 2024

Share Capital and Reserves [Abstract]

Schedule of Warrant Activity

A summary of the Company’s warrant activity and related information for the periods covered were as follows:

	Number of Shares Under Warrants			Weighted Average Exercise Price
Balance as at June 30, 2024		544,280		$	20.40
Warrants Granted		-			-
Exercised		(34,700	)		-
Expire/Cancelled		-			-
Warrants Outstanding as at December 31, 2024		509,580		$	30.18

Warrants Exercisable as at December 31, 2024		509,580		$	30.18

Share-Based Payments (Tables)

6 Months Ended

Dec. 31, 2024

Share-Based Payments [Abstract]

Schedule of Assumptions Used in the Black-Scholes Option Pricing Model

	2024			2023
Exercise price	$	4.14		$	7.4
Risk-free interest rate		4.21	%		3.95	%
Volatility		125	%		203	%
Expected life (years)		3.4			3.6
Dividend yield		0	%		0	%

Schedule of Changes in Outstanding Options

The following is a summary of changes in outstanding options from July 1, 2024 to December 31, 2024 :

	Number			Weighted Average Exercise Price
Balance at July 1, 2024		33,722		$	56.68
Granted		28,700			4.14
Expired/Forfeited		(6	)		2,866.46
Balance at December 31, 2024		62,416		$	32.25
December 31, 2024:
Vested and exercisable		15,240		$	115.32
Unvested		47,176		$	5.42

Lease Obligations (Tables)

6 Months Ended

Dec. 31, 2024

Lease Obligations [Abstract]

Schedule of Minimum Operating Lease Payments

The Company is committed to minimum operating lease payments as follows:

Maturity Analysis	June 30,
	$
2025		230,141
2026		469,194
2027		313,230
2028		-
2029		-
Total undiscounted operating lease liabilities		1,012,565
Less: imputed interest		(63,606	)
Present value of operating lease liabilities		948,959

Less: Current portion of operating lease liabilities		(419,711	)
Non-current portion of operating lease liabilities		529,248

Segment Information (Tables)

6 Months Ended

Dec. 31, 2024

Segment Information [Abstract]

Schedule of Reportable Segments

The following table presents information about the Company’s reportable segments for the three months ended December 31, 2024 and 2023:

	Three Months Ended December 31,
	2024									2023
	InMed			BayMedica			Total			InMed			BayMedica			Total
	$			$			$			$			$			$
Sales		-			1,111,707			1,111,707			-			1,240,200			1,240,200
Cost of sales		-			(650,813	)		(650,813	)		-			(916,058	)		(916,058	)
Research and development patents		(1,055,704	)		(4,663	)		(1,060,367	)		(567,139	)		(42,652	)		(609,791	)
General and Administrative		(1,332,919	)		(220,664	)		(1,553,583	)		(1,163,562	)		(200,396	)		(1,363,958	)
Amortization and depreciation		(52,603	)		(599	)		(53,202	)		(54,636	)		(598	)		(55,234	)
Foreign exchange gain (loss)		(47,753	)		-			(47,753	)		59,896			-			59,896
Interest and other income		30,536			-			30,536			165,383			1,377			166,760
Finance expense		(351,549	)		-			(351,549	)		-			-			-
Net Income (Loss)		(2,809,992	)		234,968			(2,575,024	)		(1,560,058	)		81,873			(1,478,185	)

The following table presents information about the Company’s reportable segments for the six months ended December 31, 2024 and 2023:

	Six Months Ended December 31,
	2024									2023
	InMed			BayMedica			Total			InMed			BayMedica			Total
	$			$			$			$			$			$
Sales		-			2,376,345			2,376,345			-			2,142,062			2,142,062
Cost of sales		-			(1,422,038	)		(1,422,038	)		-			(1,796,678	)		(1,796,678	)
Research and development patents		(1,818,578	)		(12,969	)		(1,831,547	)		(1,838,578	)		(63,306	)		(1,901,884	)
General and Administrative		(2,571,100	)		(404,409	)		(2,975,509	)		(2,227,222	)		(435,467	)		(2,662,689	)
Amortization and depreciation		(106,583	)		(1,198	)		(107,781	)		(108,877	)		(1,189	)		(110,066	)
Foreign exchange gain (loss)		(28,443	)		-			(28,443	)		11,439			-			11,439
Interest and other income		87,630			-			87,630			301,426			1,377			302,803
Finance expense		(351,549	)		-			(351,549	)		-			-			-
Net Income (Loss)		(4,788,623	)		535,731			(4,252,892	)		(3,861,812	)		(153,201	)		(4,015,013	)
Cash and Cash Equivalents		2,893,016			526,406			3,419,422			8,226,917			1,308,005			9,534,922

Corporate Information and Continuing Operations (Details) - USD ($)	3 Months Ended				6 Months Ended
	Dec. 31, 2024	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2024	Dec. 31, 2023	Jun. 30, 2024
Corporate Information and Continuing Operations [Abstract]
Date of incorporation					May 19, 1981
Net loss	$ (2,575,024)	$ (1,677,868)	$ (1,478,185)	$ (2,536,828)	$ (4,252,892)	$ (4,015,013)
Accumulated deficit	(113,328,651)				(113,328,651)		$ (109,075,759)
Cash, cash equivalents and short-term investments	$ 3,500,000				3,500,000
Receipt of gross proceeds					$ 2,900,000

Significant Accounting Policies (Details) - USD ($)	6 Months Ended
Significant Accounting Policies (Details) - USD ($)	Dec. 31, 2024	Dec. 31, 2023	Jun. 30, 2024
Significant Accounting Policies [Line Items]
Uninsured cash balance	$ 900,000
Estimated useful life	18 years
Impairment loss
Computer Equipment [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives	5 years
Furnishings [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives	5 years
Money Market Funds [Member]
Significant Accounting Policies [Line Items]
Cash equivalents	$ 1,031,568		$ 1,939,482
Minimum [Member] \| Lab Equipment [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives	6 years
Maximum [Member] \| Lab Equipment [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives	10 years

Significant Accounting Policies - Schedule of Concentration of Customers (Details) - Customer Concentration Risk [Member]

3 Months Ended

6 Months Ended

12 Months Ended

Dec. 31, 2024

Dec. 31, 2023

Dec. 31, 2024

Dec. 31, 2023

Jun. 30, 2024

Customer A [Member] | Revenue Benchmark [Member]

Concentration Risk [Line Items]

Percentage of concentration risk

34.00%

^[1]

28.00%

11.00%

Customer A [Member] | Accounts Receivable [Member]

Concentration Risk [Line Items]

Percentage of concentration risk

52.00%

32.00%

Customer B [Member] | Revenue Benchmark [Member]

Concentration Risk [Line Items]

Percentage of concentration risk

33.00%

20.00%

25.00%

13.00%

Customer B [Member] | Accounts Receivable [Member]

Concentration Risk [Line Items]

Percentage of concentration risk

38.00%

20.00%

Customer C [Member] | Revenue Benchmark [Member]

Concentration Risk [Line Items]

Percentage of concentration risk

13.00%

52.00%

17.00%

44.00%

Customer C [Member] | Accounts Receivable [Member]

Concentration Risk [Line Items]

Percentage of concentration risk

^[1]

15.00%

Customer D [Member] | Revenue Benchmark [Member]

Concentration Risk [Line Items]

Percentage of concentration risk

^[1]

14.00%

Customer D [Member] | Accounts Receivable [Member]

Concentration Risk [Line Items]

Percentage of concentration risk

^[1]

15.00%

Customer E [Member] | Revenue Benchmark [Member]

Concentration Risk [Line Items]

Percentage of concentration risk

^[1]

12.00%

10.00%

Customer E [Member] | Accounts Receivable [Member]

Concentration Risk [Line Items]

Percentage of concentration risk

11.00%

14.00%

[1]	Less than 10%.

Significant Accounting Policies - Schedule of Potential Common Shares (Details) - shares	6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Schedule of Potential Common Shares [Line Items]
Total share of anti-dilutive	571,996	512,923
Equity Option [Member]
Schedule of Potential Common Shares [Line Items]
Total share of anti-dilutive	62,416	3,621
Warrant [Member]
Schedule of Potential Common Shares [Line Items]
Total share of anti-dilutive	509,580	509,602

Inventories (Details) - USD ($)	3 Months Ended		6 Months Ended
Inventories (Details) - USD ($)	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023	Jun. 30, 2024
Inventories [Abstract]
Written-down net realizable value		$ 170,474		$ 263,404
Valuation allowance	$ 103,434		$ 103,434		$ 103,434

Inventories - Schedule of Inventories (Details) - USD ($)	Dec. 31, 2024	Jun. 30, 2024
Schedule of Inventories [Abstract]
Raw materials	$ 172,200	$ 372,695
Work in process	255,992	30,817
Finished goods	675,164	840,812
Inventories	$ 1,103,356	$ 1,244,324

Property, Equipment and Rou Assets, Net (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Property, Equipment and ROU Assets, Net [Abstract]
Depreciation expense	$ 12,209	$ 14,242	$ 25,795	$ 28,080
Amortization of ROU assets	$ 75,876	$ 93,085	$ 166,277	$ 191,909

Property, Equipment and Rou Assets, Net - Schedule of Property, Equipment and ROU Assets (Details) - USD ($)	Dec. 31, 2024	Jun. 30, 2024
Schedule of Property, Equipment and ROU Assets [Line Items]
Property and equipment	$ 2,371,192	$ 2,605,310
Less: accumulated depreciation and amortization	(1,140,231)	(1,355,311)
Property, equipment and ROU assets, net	1,230,961	1,249,999
ROU Assets (leases) [Member]
Schedule of Property, Equipment and ROU Assets [Line Items]
Property and equipment	1,901,692	2,135,811
Equipment [Member]
Schedule of Property, Equipment and ROU Assets [Line Items]
Property and equipment	429,091	429,090
Furnishings [Member]
Schedule of Property, Equipment and ROU Assets [Line Items]
Property and equipment	$ 40,409	$ 40,409

Intangible Assets (Details) - USD ($)	3 Months Ended		6 Months Ended
Intangible Assets (Details) - USD ($)	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Intangible Assets [Line Items]
Estimated useful life	18 years		18 years
Weighted average estimated remaining useful life			11 years
Amortization expense on intangible assets	$ 42,820	$ 40,993	$ 81,986	$ 81,986
Intellectual Property [Member]
Intangible Assets [Line Items]
Amortized period	18 years		18 years

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)	Dec. 31, 2024	Jun. 30, 2024
Schedule of Intangible Assets [Line Items]
Intangible assets	$ 2,927,420	$ 2,927,420
Less: accumulated amortization	(1,226,209)	(1,144,222)
Intangible assets, net	1,701,211	1,783,198
Intellectual Property [Member]
Schedule of Intangible Assets [Line Items]
Intangible assets	1,736,420	1,736,420
Patents [Member]
Schedule of Intangible Assets [Line Items]
Intangible assets	$ 1,191,000	$ 1,191,000

Intangible Assets - Schedule of Expects Amortization Expense (Details)	Jun. 30, 2024 USD ($)
Schedule of Expects Amortization Expense [Abstract]
2025 (remaining)	$ 81,373
2026	162,746
2027	162,746
2028	162,746
2029	162,746
Thereafter	968,854
Total	$ 1,701,211

Accounts Payable and Accrued Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($)	Dec. 31, 2024	Jun. 30, 2024
Schedule of Accounts Payable and Accrued Liabilities [Abstract]
Trade payables	$ 574,563	$ 626,190
Accrued research and development expenses	249,784	242,066
Inventory related accruals	12,250	41,004
Employee compensation, benefits and related accruals	337,236	488,278
Accrued general and administrative expenses	197,400	256,473
Accounts payable and accrued liabilities	$ 1,371,233	$ 1,654,011

Share Capital and Reserves (Details) - USD ($)		3 Months Ended			6 Months Ended	12 Months Ended
Share Capital and Reserves (Details) - USD ($)	Dec. 13, 2024	Dec. 31, 2024	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2024	Jun. 30, 2024
Share Capital and Reserves [Line Items]
Preferred shares, issued
Preferred shares, outstanding
Shares issued		724,152			724,152	445,908
Gross proceeds					$ 1,400,000
Equity purchase	$ 10,000,000	$ 57,632	$ 191,824	$ 562,151
Percentage of outstanding common shares	19.99%
Percentage of not exceed beneficially owned by the Investor and its affiliates	9.99%
Percentage of market price	97.00%
Fees paid		351,549			351,549
Warrant [Member]
Share Capital and Reserves [Line Items]
Outstanding intrinsic value						$ 184,539
Weighted average remaining life					4 years	6 years
SEPA [Member]
Share Capital and Reserves [Line Items]
Commitment fee					$25,000
Commitment Fee [Member]
Share Capital and Reserves [Line Items]
Commitment fee					$250,000
Commitment fee percentage					2.50%
Periodic Payment [Member]
Share Capital and Reserves [Line Items]
Commitment fee percentage					25.00%
Quarterly Instalments Beginning [Member]
Share Capital and Reserves [Line Items]
Commitment fee percentage					75.00%
ATM Agreement [Member]
Share Capital and Reserves [Line Items]
Shares issued		243,547			243,547

Share Capital and Reserves - Schedule of Warrant Activity (Details) - Warrant [Member]	6 Months Ended
	Dec. 31, 2024 $ / shares shares
Schedule of Warrant Activity [Line Items]
Number of Shares Under Warrants, Balance beginning \| shares	544,280
Weighted Average Exercise Price, Balance beginning \| $ / shares	$ 20.4
Number of Shares Under Warrants, Warrants Exercisable \| shares	509,580
Weighted Average Exercise Price, Warrants Exercisable \| $ / shares	$ 30.18
Number of Shares Under Warrants, Warrants Granted \| shares
Weighted Average Exercise Price, Warrants Granted \| $ / shares
Number of Shares Under Warrants, Exercised \| shares	(34,700)
Weighted Average Exercise Price, Exercised \| $ / shares
Number of Shares Under Warrants, Expire/Cancelled \| shares
Weighted Average Exercise Price, Expire/Cancelled \| $ / shares
Number of Shares Under Warrants, Balance ending \| shares	509,580
Weighted Average Exercise Price, Balance ending \| $ / shares	$ 30.18

Share-Based Payments (Details) - USD ($)			3 Months Ended		6 Months Ended
Share-Based Payments (Details) - USD ($)	Dec. 20, 2024	Mar. 24, 2017	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023	Jun. 30, 2024	Dec. 19, 2023	Dec. 18, 2023
Share-Based Payments [Line Items]
Percentage of common stock issued and outstanding		20.00%			20.00%
Stock options (in Shares)								35,000	60,000
Stock options granted (in Shares)					28,700
Share-based payment expense			$ 23,159	$ 18,264	$ 52,123	$ 43,455
Weighted-average vesting period					1 year 4 months 24 days
Share-Based Payment Arrangement, Option [Member]
Share-Based Payments [Line Items]
Stock options (in Shares)			40,272		40,272		8,966
Stock options granted (in Shares)	28,700
Unvested Options [Member]
Share-Based Payments [Line Items]
Unrecognized compensation cost			$ 136,899		$ 136,899
General and Administrative Expenses [Member]
Share-Based Payments [Line Items]
Share-based payment expense			13,974	10,136	31,539	25,567
Research and Development Expense [Member]
Share-Based Payments [Line Items]
Share-based payment expense			9,035	8,128	20,215	8,128
Cost of Goods Sold [Member]
Share-Based Payments [Line Items]
Share-based payment expense			$ 150		$ 369

Share-Based Payments - Schedule of Assumptions Used in the Black-Scholes Option Pricing Model (Details) - $ / shares	6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Schedule of Assumptions Used in the Black-Scholes Option Pricing Model [Abstract]
Exercise price (in Dollars per share)	$ 4.14	$ 7.4
Risk-free interest rate	4.21%	3.95%
Volatility	125.00%	203.00%
Expected life (years)	3 years 4 months 24 days	3 years 7 months 6 days
Dividend yield	0.00%	0.00%

Share-Based Payments - Schedule of Changes in Outstanding Options (Details)	6 Months Ended
	Dec. 31, 2024 $ / shares shares
Share-Based Payments [Abstract]
Number, Balance at beginning \| shares	33,722
Weighted Average Exercise Price, Balance at beginning \| $ / shares	$ 56.68
Number, Granted \| shares	28,700
Weighted Average Exercise Price, Granted \| $ / shares	$ 4.14
Number, Expired/Forfeited \| shares	(6)
Weighted Average Exercise Price, Expired/Forfeited \| $ / shares	$ 2,866.46
Number, Balance at ending \| shares	62,416
Weighted Average Exercise Price, Balance at ending \| $ / shares	$ 32.25
Number, Vested and exercisable \| shares	15,240
Weighted Average Exercise Price, Vested and exercisable \| $ / shares	$ 115.32
Number, Unvested \| shares	47,176
Weighted Average Exercise Price, Unvested \| $ / shares	$ 5.42

Lease Obligations (Details)	Jul. 29, 2024 USD ($) m²	Oct. 05, 2023 USD ($)
Leases Obligations [Abstract]
Square feet (in Square Meters) \| m²	2,243
Rental rate	$ 12,296
Agreement term	2 years
Borrowing rate, percentage	7.00%	6.15%
Corresponding operating lease liability	$ 205,201	$ 953,935
Extended date		extend its lease to May 14, 2027
Obligated to pay		$ 1,295,759
Termination period		three-year

Lease Obligations - Schedule of Minimum Operating Lease Payments (Details) - USD ($)	Dec. 31, 2024	Jun. 30, 2024
Schedule of Minimum Lease Payments [Abstract]
2025	$ 230,141
2026	469,194
2027	313,230
2028
2029
Total undiscounted operating lease liabilities	1,012,565
Less: imputed interest	(63,606)
Present value of operating lease liabilities	948,959
Less: Current portion of operating lease liabilities	(419,711)	$ (317,797)
Non-current portion of operating lease liabilities	$ 529,248	$ 644,865

Segment Information (Details) - USD ($) $ in Millions	Dec. 31, 2024	Jun. 30, 2024
InMed Pharma [Member]
Segment Information [Line Items]
Total assets	$ 6.8	$ 9.2
BayMedica Commercial [Member]
Segment Information [Line Items]
Total assets	$ 2.0	$ 2.6

Segment Information - Schedule of Reportable Segments (Details) - Reportable Subsegments [Member] - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Schedule of Reportable Segments [Line Items]
Sales	$ 1,111,707	$ 1,240,200	$ 2,376,345	$ 2,142,062
Cost of sales	(650,813)	(916,058)	(1,422,038)	(1,796,678)
Research and development patents	(1,060,367)	(609,791)	(1,831,547)	(1,901,884)
General and Administrative	(1,553,583)	(1,363,958)	(2,975,509)	(2,662,689)
Amortization and depreciation	(53,202)	(55,234)	(107,781)	(110,066)
Foreign exchange gain (loss)	(47,753)	59,896	(28,443)	11,439
Interest and other income	30,536	166,760	87,630	302,803
Finance expense	(351,549)		(351,549)
Net Income (Loss)	(2,575,024)	(1,478,185)	(4,252,892)	(4,015,013)
Cash and Cash Equivalents	3,419,422	9,534,922	3,419,422	9,534,922
InMed [Member]
Schedule of Reportable Segments [Line Items]
Sales
Cost of sales
Research and development patents	(1,055,704)	(567,139)	(1,818,578)	(1,838,578)
General and Administrative	(1,332,919)	(1,163,562)	(2,571,100)	(2,227,222)
Amortization and depreciation	(52,603)	(54,636)	(106,583)	(108,877)
Foreign exchange gain (loss)	(47,753)	59,896	(28,443)	11,439
Interest and other income	30,536	165,383	87,630	301,426
Finance expense	(351,549)		(351,549)
Net Income (Loss)	(2,809,992)	(1,560,058)	(4,788,623)	(3,861,812)
Cash and Cash Equivalents	2,893,016	8,226,917	2,893,016	8,226,917
BayMedica [Member]
Schedule of Reportable Segments [Line Items]
Sales	1,111,707	1,240,200	2,376,345	2,142,062
Cost of sales	(650,813)	(916,058)	(1,422,038)	(1,796,678)
Research and development patents	(4,663)	(42,652)	(12,969)	(63,306)
General and Administrative	(220,664)	(200,396)	(404,409)	(435,467)
Amortization and depreciation	(599)	(598)	(1,198)	(1,189)
Foreign exchange gain (loss)
Interest and other income		1,377		1,377
Finance expense
Net Income (Loss)	234,968	81,873	535,731	(153,201)
Cash and Cash Equivalents	$ 526,406	$ 1,308,005	$ 526,406	$ 1,308,005

Commitments and Contingencies (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2024	Jun. 30, 2024	Jun. 30, 2023	Mar. 11, 2021
Commitments and Contingencies [Line Items]
Contract research services and materials	$ 755,074
Guaranteed investment certificates		$ 40,787	$ 43,064
Warrants to purchase (in Shares)					700
Patent License Agreement [Member]
Commitments and Contingencies [Line Items]
Payable under the patent license agreement				$ 300,000
Common Stock [Member]
Commitments and Contingencies [Line Items]
Warrants to purchase (in Shares)					700

Related Party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended
Related Party Transactions (Details) - USD ($)	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Related Party Transactions [Line Items]
Legal services	$ 194,428	$ 116,951	$ 316,978	$ 131,154

Subsequent Events (Details) - Subsequent Event [Member]	Jan. 31, 2025 USD ($) shares
Standby Equity Purchase Agreement [Member]
Subsequent Events [Line Items]
Gross proceeds \| $	$ 2,455,600
Amended ATM Agreement [Member]
Subsequent Events [Line Items]
Gross proceeds \| $	$ 479,400
Common Stock [Member] \| Standby Equity Purchase Agreement [Member]
Subsequent Events [Line Items]
Share issued \| shares	413,336
Common Stock [Member] \| Amended ATM Agreement [Member]
Subsequent Events [Line Items]
Share issued \| shares	69,698

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