InMed Pharmaceuticals Inc. reported its financial results for the three months ended September 30, 2024, showing significant improvements in revenue and profitability compared to the same period in the previous year. The company generated sales of $1,264,638, a 40% increase from $901,862 in the prior year. Gross profit surged to $493,413, up from just $21,242, reflecting a substantial enhancement in operational efficiency.

Despite the increase in revenue, InMed Pharmaceuticals recorded a net loss of $1,677,868 for the quarter, which is an improvement from the net loss of $2,536,828 reported in the same quarter of 2023. The loss per share also decreased significantly to $(2.71) from $(15.24), indicating a more favorable financial position. The weighted average number of shares outstanding rose to 620,127 from 166,410, contributing to the improved loss per share metrics.

Total current assets decreased to $7,279,892 as of September 30, 2024, down from $8,689,585 at the end of June 2024. Total assets also fell to $10,465,106 from $11,822,782. Conversely, total liabilities decreased to $2,069,662 from $2,616,673, leading to a reduction in total shareholders' equity to $8,395,444 from $9,206,109.

The company’s cash and cash equivalents stood at $5,583,039, down from $6,571,610 at the end of the previous quarter. InMed's cash position is expected to fund operations through the end of Q1 2025, contingent on revenues from its BayMedica segment and ongoing operating expenses.

Strategically, InMed Pharmaceuticals executed a reverse stock split at a ratio of 20-to-1 on November 14, 2024, aimed at regaining compliance with Nasdaq's minimum bid price requirement. This action reduced the number of common shares outstanding from approximately 14.4 million to about 718,032. The company also raised $1,030,063 through a private placement of 186,364 shares during the reporting period.

Research and development expenses decreased to $763,000 from $1,271,000 year-over-year, primarily due to reduced external contractor costs. However, the company anticipates that future R&D expenses will rise as it advances its drug candidates, including INM-901 for Alzheimer's disease and INM-755 for Epidermolysis Bullosa.

InMed Pharmaceuticals continues to face challenges regarding its financial viability, with substantial doubt about its ability to continue as a going concern within one year from the issuance of the financial statements. The company plans to seek additional funding through various means, including equity and debt financings, to support its ongoing operations and development efforts.