InMed Pharmaceuticals Reports First Quarter Fiscal 2021 IFRS Financial Results
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.
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SOURCE InMed Pharmaceuticals Inc.
