VANCOUVER, BC, Nov. 13, 2020 /PRNewswire/ - InMed
Pharmaceuticals Inc. ("InMed" or the "Company") (NASDAQ: INM)
(TSX: IN), a clinical-stage pharmaceutical company developing
medications targeting diseases with high unmet medical need and
leading the way in the clinical development of cannabinol ("CBN"),
in compliance with continuous disclosure obligations in
Canada, today reported financial
results for the first quarter of fiscal year 2021 ("1Q21") which
ended September 30, 2020.
With yesterday's announced financing expected to close on
November 16, 2020, subject to
customary closing conditions, the conference call component of this
quarter's financial reporting has been cancelled. The Company looks
forward to updating investors during a future conference call.
Results of Operations (expressed in Canadian Dollars and
in accordance with IFRS):
- For the three months ended September 30,
2020, the Company recorded a net loss of $2.1 million, or $0.41 per share, compared with a net loss of
$3.4 million, or $0.65 per share, for the three months ended
September 30, 2019.
- Research and development expenses were $1.2 million for 1Q21, compared with $2.3 million for the three months ended
September 30, 2019. The decrease was
primarily due to a decrease in the costs associated with external
contractors and research supplies.
- The Company incurred general and administrative expenses of
$0.7 million for 1Q21, compared with
$1.0 million for the three months
ended September 30, 2019. The
decrease in general and administrative expenses for the three
months to September 30, 2020 was
primarily due to decreased accounting and legal expenses pertaining
to certain corporate initiatives, including certain current year
legal costs being capitalized as deferred financing costs offset by
higher accounting fees partly resulting from the preparation of
financial statements under both IFRS and US GAAP, as well as
decreased salaries and benefits.
- The Company also incurred non-cash, share-based payments, in
connection with the grant of stock options, of $0.1 million for 1Q21, compared with $0.2 million for the three months ended
September 30, 2019.
- At September 30, 2020, the
Company's cash, cash equivalents and short-term investments were
$6.1 million, which compares to
$8.0 million at June 30, 2020. The decrease in cash, cash
equivalents and short-term investments during the three months
ended September 30, 2020, was
primarily due to cash outflows from operating activities.
- At September 30, 2020, the
Company's total issued and outstanding shares were 5,220,707. In
addition, at September 30, 2020,
there were 556,817 outstanding stock options with a weighted
average exercise price of $14.96.
Table 1: Condensed consolidated interim statements
of financial position
(unaudited):
InMed
Pharmaceuticals Inc.
|
|
|
|
|
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(unaudited)
|
As at September 30,
2020 and June 30, 2020
|
|
|
|
|
Expressed in Canadian
Dollars
|
|
|
|
|
|
|
September
30,
|
|
June 30,
|
|
|
2020
|
|
2020
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
|
|
|
|
|
Cash and cash
equivalents
|
$
|
5,998,943
|
$
|
7,912,156
|
Short-term
investments
|
|
57,574
|
|
57,761
|
Accounts
receivable
|
|
69,193
|
|
61,794
|
Prepaids and other
assets
|
|
699,225
|
|
570,905
|
Total current
assets
|
|
6,824,935
|
|
8,602,616
|
|
|
|
|
|
Non-Current
|
|
|
|
|
Property and
equipment
|
|
512,923
|
|
549,869
|
Intangible
assets
|
|
1,068,981
|
|
1,091,642
|
Other
assets
|
|
18,659
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
$
|
8,425,498
|
$
|
10,244,127
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
|
|
|
|
|
Accounts payables and
accrued liabilities
|
$
|
2,404,526
|
$
|
2,190,432
|
Current portion of
lease obligations
|
|
95,243
|
|
93,986
|
Total current
liabilities
|
|
2,499,769
|
|
2,284,418
|
|
|
|
|
|
Non-current
|
|
|
|
|
Lease
obligations
|
|
314,264
|
|
337,989
|
|
|
2,814,033
|
|
2,622,407
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
Share
capital
|
|
68,579,890
|
|
68,579,890
|
Contributed
surplus
|
|
15,599,115
|
|
15,468,817
|
Accumulated
deficit
|
|
(78,567,540)
|
|
(76,426,987)
|
|
|
5,611,465
|
|
7,621,720
|
|
$
|
8,425,498
|
$
|
10,244,127
|
Table 2: Condensed consolidated interim statements
of operations and comprehensive loss
(unaudited):
InMed
Pharmaceuticals Inc.
|
|
|
|
|
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
(unaudited)
|
|
|
|
|
For the three months
ended September 30, 2020 and September 30, 2019
|
|
|
Expressed in Canadian
Dollars
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
30,
|
|
|
2020
|
|
2019
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
Research and
development
|
$
|
1,163,721
|
$
|
2,331,788
|
General and
administrative
|
|
740,929
|
|
958,331
|
Amortization and
depreciation
|
|
59,607
|
|
43,284
|
Share-based
payments
|
|
130,298
|
|
151,567
|
|
|
|
|
|
Total operating
expenses
|
|
2,094,555
|
-
|
3,484,970
|
|
|
|
|
|
Finance Costs and
Other Income (Loss)
|
|
|
|
|
Interest
income
|
|
6,618
|
|
77,119
|
Foreign exchange gain
(loss)
|
|
(52,616)
|
|
21,036
|
|
|
|
|
|
Total net loss and
comprehensive loss for the period
|
$
|
(2,140,553)
|
$
|
(3,386,815)
|
|
|
|
|
|
Basic and diluted
loss per share for the period
|
$
|
(0.41)
|
$
|
(0.65)
|
Table 3: Condensed consolidated interim statements
of cash flows (unaudited):
InMed
Pharmaceuticals Inc.
|
|
|
|
|
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(unaudited)
|
|
For the three months
ended September 30, 2020 and September 30, 2019
|
|
|
Expressed in Canadian
Dollars
|
|
|
|
|
|
|
2020
|
|
2019
|
|
|
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
Net loss for the
period
|
$
|
(2,140,553)
|
$
|
(3,386,815)
|
Adjustments to
reconcile loss to net cash used in operating activities
|
|
|
|
|
Amortization
and depreciation
|
|
59,607
|
|
43,284
|
Share-based
payments
|
|
130,298
|
|
151,567
|
Loss on sale
of assets
|
|
-
|
|
1,070
|
Interest
accretion on lease obligations
|
|
(830)
|
|
-
|
|
|
|
|
|
Changes in non-cash
working capital balances:
|
|
|
|
|
Prepaids and
other assets
|
|
(42,202)
|
|
111,053
|
Interest
income accrued on short-term investments
|
|
187
|
|
107,168
|
Other
non-current assets
|
|
(18,659)
|
|
-
|
Accounts
receivable
|
|
(7,399)
|
|
44,899
|
Accounts
payable and accrued liabilities
|
|
214,094
|
|
(194,997)
|
|
|
|
|
|
Total cash used in
operating activities
|
|
(1,805,457)
|
|
(3,122,771)
|
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
Maturity of
short-term investments
|
|
-
|
|
5,034,500
|
Purchase of
short-term investments
|
|
-
|
|
(34,500)
|
Purchase of property
and equipment
|
|
-
|
|
(42,953)
|
Proceeds on disposal
of property and equipment
|
|
-
|
|
726
|
Total cash
provided by investing activities
|
|
-
|
|
4,957,773
|
|
|
|
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
Payments on lease
obligations
|
|
(21,639)
|
|
-
|
Deferred financing
costs
|
|
(86,117)
|
|
-
|
|
|
|
|
|
Total cash used in
financing activities
|
|
(107,756)
|
|
-
|
|
|
|
|
|
Decrease in cash
during the period
|
|
(1,913,213)
|
|
1,835,002
|
|
|
|
|
|
Cash and cash
equivalents beginning of the period
|
|
7,912,156
|
|
12,873,961
|
|
|
|
|
|
Cash and cash
equivalents end of the period
|
$
|
5,998,943
|
$
|
14,708,963
|
About InMed: InMed Pharmaceuticals is a clinical-stage
pharmaceutical company developing a pipeline of cannabinoid-based
medications, initially focused on the therapeutic benefits of
cannabinol (CBN) in diseases with high unmet medical need. The
Company is dedicated to delivering new therapeutic alternatives to
patients that may benefit from cannabinoid-based medicines. For
more information, visit www.inmedpharma.com.
Cautionary Note Regarding Forward-Looking
Information:
This news release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
information") within the meaning of applicable securities
laws. Forward-looking information is based on management's
current expectations and beliefs and is subject to a number of
risks and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements.
Forward-looking information in this news release includes
statements about: leading the way in the clinical development of
cannabinol ("CBN"); developing a pipeline of cannabinoid-based
medications in diseases with high unmet medical need; delivering
new therapeutic alternatives to patients that may benefit from
cannabinoid-based medicines; and the closing of the Company's
financing on November 16, 2020 or at
all.
With respect to the forward-looking information contained in
this news release, InMed has made numerous assumptions regarding,
among other things: continued and timely positive preclinical and
clinical efficacy data; the speed of regulatory approvals; the
ability to contract with suitable partners; demand for InMed's
products; and continued economic and market stability. While
InMed considers these assumptions to be reasonable, these
assumptions are inherently subject to significant business,
economic, competitive, market and social uncertainties and
contingencies.
Additionally, there are known and unknown risk factors which
could cause InMed's actual results, performance or achievements to
be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
information contained herein. Known risk factors include, among
others: the outbreak and impact of COVID-19 may worsen; preclinical
and clinical testing may not produce the desired results on a
timely basis, or at all; regulatory applications may not be
approved on a timely basis, or at all; cannabis licensing/importing
issues may delay our projected development timelines; suitable
partners may not be located; economic or market conditions may
worsen; our existing cash runway may not allow us to complete our
forthcoming significant milestones; the development of a
proprietary biosynthesis manufacturing technology for the
production of pharmaceutical-grade cannabinoids as well as a
pipeline of medications targeting diseases with high unmet medical
needs may not be as successful as desired, if at all. A more
complete discussion of the risks and uncertainties facing InMed is
disclosed in InMed's most recent Annual Information Form and other
continuous disclosure filed with Canadian securities regulatory
authorities on SEDAR at www.sedar.com.
All forward-looking information herein is qualified in its
entirety by this cautionary statement, and InMed disclaims any
obligation to revise or update any such forward-looking information
or to publicly announce the result of any revisions to any of the
forward-looking information contained herein to reflect future
results, events or developments, except as required by law.
NEITHER THE TORONTO
STOCK EXCHANGE NOR ITS REGULATIONS
SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE.
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SOURCE InMed Pharmaceuticals Inc.