10-Q · May 6, 2026
InMed Pharmaceuticals reported a significant decline in revenue in Q2 2026 with total revenue at $820,188, a decrease of 18% from Q1 2026 and a 18% decline year-over-year. The company is winding down its only…
Earnings analysis · 10-K
INM earnings analysis
Filed September 9, 2026 · Our reading of the company's report
The latest report
InMed is transitioning from a small commercial cannabinoid business to a cash-constrained pharmaceutical development company, while also pursuing the highly dilutive Mentari merger. Fiscal 2026 showed worsening losses,…
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InMed is transitioning from a small commercial cannabinoid business to a cash-constrained pharmaceutical development company, while also pursuing the highly dilutive Mentari merger. Fiscal 2026 showed worsening losses, $8.64 million of operating cash burn and only $2.19 million of cash and short-term investments at year-end; the company explicitly reports substantial doubt about its ability to continue as a going concern. The pipeline offers potential upside, including a completed Phase 2 INM-755 study, but development is early-stage, requires substantial additional financing and currently lacks a funded operating runway beyond calendar Q3 2026.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-3.12
- Segment
- InMed Pharma: continuing operations; no commercial revenue from Product Candidates. BayMedica Commercial: discontinued operations sales of $3.18 million, down from $4.94 million in 2025, with gross profit of $0.71 million versus $1.71 million.
What stood out
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Three-program pharmaceutical pipeline
The pipeline comprises three programs targeting Alzheimer’s disease, dry age-related macular degeneration and epidermolysis bullosa. INM-755 completed a Phase 2 trial, with results showing a “positive indication of enhanced anti-itch activity” versus control cream; INM-901 and INM-089 remain in development.
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Strategic shift to asset-focused R&D
The company exited BayMedica’s commercial operations, its only revenue-generating segment, on March 4, 2026. The remaining strategy is focused on preclinical Product Candidates and the IntegraSyn manufacturing platform, although management says it does not currently intend to devote significant resources to advancing the candidates without additional financing.
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Losses expanded materially
Net loss increased 54% to $12.56 million in fiscal 2026 from $8.16 million in fiscal 2025. Continuing-operations loss increased 31% to $11.37 million, while general and administrative expense rose 23% to $6.66 million and impairment charges totaled $1.65 million.
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Cash burn accelerated
Cash used in operating activities rose to $8.64 million from $8.10 million, while cash and cash equivalents declined to $2.19 million from $10.74 million. Financing provided only $94,496 in fiscal 2026 versus $12.27 million in fiscal 2025.
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Capital allocation prioritized liquidity
The company reduced its outstanding warrants from 4.54 million at June 30, 2025 to 581,512 at June 30, 2026, as investors exercised 3.96 million warrants for 3.08 million common shares. No equity repurchases occurred and the company states it does not intend to pay dividends for the foreseeable future.
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Merger remains transformational catalyst
The proposed Mentari transaction remains the principal strategic catalyst: the merger formula contemplates Mentari stockholders owning approximately 98.99% and pre-merger InMed shareholders approximately 1.01% of the combined company before the planned financing, subject to closing conditions.
What to watch
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Near-term liquidity shortfall
The auditor included a going-concern explanatory paragraph, and management concluded that substantial doubt exists about continuing as a going concern. The company had $2.2 million of cash, cash equivalents and short-term investments at June 30, 2026, expected to fund operations only into the end of calendar Q3 2026, while its accumulated deficit reached $130.2 million.
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Loss of only commercial revenue
BayMedica, the only revenue-generating business, was wound down; fiscal 2026 discontinued-operations sales fell to $3.18 million from $4.94 million and generated a $1.19 million loss versus $0.53 million of income in 2025. The wind-down generated approximately $555,000 of severance and employee-related costs and is expected to require another approximately $120,000.
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Material patent-license arbitration
The remaining Patent License Matter seeks approximately $3.4 million for alleged annual payments for 2022–2024 plus approximately $2.3 million of annual minimum payments for the remainder of the license term. Although the arbitrator struck significant claims on June 1, 2026, the minimum-payment claim remains active and an unfavorable outcome could materially affect the company’s financial condition.
Management's outlook
No formal revenue or EPS guidance was provided. Management states that $2.2 million of cash, cash equivalents and short-term investments as of June 30, 2026 is expected to fund operations into the end of the third quarter of calendar 2026, depending on operating expenses. The company expects continued operating losses and negative operating cash flows for the foreseeable future.
Earlier filings 4
10-Q · February 11, 2026
InMed reported quarterly sales of $820,188 (Q) and GAAP EPS of $(0.51). Revenue fell versus the prior-year quarter ($1,111,707) and prior quarter (~$1.0M), gross margin compressed to 22.5% from 41.5% a year earlier, and…
10-K · September 23, 2025
InMed’s 10-K emphasizes a dual strategy: advance a small-molecule pharmaceutical pipeline (three programs: INM-901 for Alzheimer’s, INM-089 for dry AMD, and INM-755 which completed a Phase 2) while commercializing bulk…
10-Q · November 14, 2024
InMed reported quarterly sales of $1,264,638 (up from $901,862 a year earlier) and gross profit of $493,413 (gross margin 39.0%). Loss narrowed vs. prior year: net loss per share was $(2.71) for the quarter. Liquidity…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.