Cannabinol

Closed calendar year 2022 with strong cash position of $11.5 millionApproaches completion of enrollment for Ph 2 clinical trial in EBAdvances research using rare cannabinoids in treating glaucoma and neurodegenerative diseases such as Alzheimer’s, Huntington’s and Parkinson’s VANCOUVER, British Columbia, Feb. 17, 2023 (GLOBE NEWSWIRE) -- InMed Pharmaceuticals Inc. (“InMed” or the “Company”) (Nasdaq: INM), a leader in the pharmaceutical research, development and manufacturing of rare cannabinoids and cannabinoid analogs, today announced financial results for the second quarter of fiscal year 2023 which ended December 31, 2022. The Company’s full financial statements and related MD&A for the second quarter ended December 31, 2022, are available at www.inmedpharma.com, www.sedar.com and at www.sec.gov. “This period was another strong operational quarter for the Company as we advanced our pharmaceutical programs, including the launch of INM-900 series compounds for the evaluation of neurodegenerative diseases. We are currently approaching the end of enrollment in our Ph 2 clinical trial in Epidermolysis Bullosa (“EB”). As we move into calendar 2023, we have a strong pipeline of programs at various stages of development,” said Eric A. Adams, President and CEO of InMed. “Fiscal Q2 saw significant cost savings across the different business segments resulting in a reduced cash burn. In addition, our strong cash position of over $11 million enables us to pursue several material milestones throughout calendar 2023.” Business update Pharmaceutical Development Programs INM-755 – Phase 2 Clinical Trial in EBTo date, the Ph 2 clinical trial has enrolled 17 patients of its targeted 20 patients. Several additional prospective patients have been identified for screening at the clinical sites and enrollment is expected to complete at the end of March 2023, with initial read out expected in early calendar 3Q 2023. INM-088 – Glaucoma ProgramThe Company continues to conduct the required IND enabling preclinical testing and has planned GLP toxicology studies in mid-2023. Human clinical trials remain on track to commence in calendar 2024. INM-900 – Neurodegenerative Diseases ProgramTwo cannabinoid analogs are being assessed in in vivo models of neurodegenerative diseases and the Company expects these studies to be completed and a candidate selected for further development in calendar 2Q 2023. Our research demonstrated the neuroprotective effects of specific cannabinoid analogs and their potential to improve neuronal function. BayMedica Commercial Business BayMedica continues to be a leading producer of cannabichromene (CBC) with increased revenue in the last two quarters, including a 46% quarter over quarter increase in fiscal 2Q 2023. Management continues to evaluate strategic options and long-term supply agreements for this business segment. Financing Activities and Results of Operations (expressed in US Dollars):On November 21, 2022, the Company closed a private placement of its common shares and issued an aggregate of 1,818,185 common shares (or pre-funded warrants in lieu of), for gross proceeds of approximately $6 million. For the six months ended December 31, 2022, the Company recorded a net loss of $5.6 million, or $3.54 per share, compared with a net loss of $7.3 million, or $14.03 per share, for the six months ended December 31, 2021. Research and development and patents expenses were $2.2 million for the six months ended December 31, 2022, compared with $4.0 million for the six months ended December 31, 2021. The decrease in research and development and patents expenses was primarily due to decreased expenditures related to the transition from capital intensive GLP toxicology into relatively less capital intensive clinical trials. The Company incurred general and administrative expenses of $3.0 million for the six months ended December 31, 2022, compared with $3.2 million for the six months ended December 31, 2021. The decrease was due to lower personnel expenses, insurance fees, investor relation expenses, accounting fees and stock-based compensation expenses, and was partially offset by higher consulting fees and BayMedica operating costs. Revenues increased by $0.5 million to $0.8 million in our BayMedica segment, or 198%, for the six months ended December 31, 2022, compared to the six months ended December 31, 2021. The increase in sales results from expanded marketing efforts to sell inventory on-hand and the Company acquired BayMedica on October 13, 2021, so the six months ended December 31, 2021 results were approximately 2 and a half months. At December 31, 2022, the Company's total issued and outstanding shares were 1,589,992. Subsequent to quarter end, 1,738,204 pre-funded warrants were exercised. As of the date of these filings, the issued and outstanding shares are 3,328,196. During the three and six months ending December 31, 2022, the weighted average number of common shares was 2,300,526 and 1,583,073, which is used for the calculation of loss per share for the respective interim periods. At December 31, 2022, the Company’s cash, cash equivalents and short-term investments were $11.5 million, which compares to $6.2 million at June 30, 2022. The increase in cash, cash equivalents and short-term investments during the six months to December 31, 2022, was primarily the result of both the September 13, 2022 and November 21, 2022 private placements partially offset by cash outflows from operating activities. With the completion of recent financings and depending on how we prioritize investment into our various development activities, InMed has a projected cash runway to the end of calendar 2023, allowing the Company to pursue certain material milestones over the coming year which we believe will increase shareholder value. Table 1: Condensed Consolidated Interim Balance Sheets: InMed Pharmaceuticals Inc. CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (unaudited) As at December 31, 2022 and June 30, 2022 Expressed in U.S. Dollars December 31, June 30, 2022 2022 ASSETS$$Current Cash and cash equivalents11,452,578 6,176,866 Short-term investments43,053 44,804 Accounts receivable, net81,647 88,027 Inventories1,613,506 2,490,854 Prepaids and other current assets826,931 797,225 Total current assets14,017,715 9,597,776 Non-Current Property, equipment and ROU assets, net703,922 904,252 Intangible assets, net2,026,929 2,108,915 Other assets171,130 176,637 Total Assets16,919,696 12,787,580 LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable and accrued liabilities1,970,265 2,415,265 Current portion of lease obligations414,307 404,276 Deferred rent16,171 - Acquisition consideration payable- 500,000 Total current liabilities2,400,743 3,319,541 Non-current Lease obligations, net of current portion183,902 389,498 Total Liabilities2,584,645 3,709,039 Shareholders' Equity Common shares, no par value, unlimited authorized shares: 1,589,992 (June 30, 2022 - 650,667) issued and outstanding 74,862,424 70,718,461 Additional paid-in capital38,407,932 31,684,098 Accumulated deficit(99,063,874)(93,452,587) Accumulated other comprehensive income128,569 128,569 Total Shareholders' Equity14,335,051 9,078,541 Total Liabilities and Shareholders' Equity16,919,696 12,787,580 Table 2: Condensed Consolidated Interim Statements of Operations: InMed Pharmaceuticals Inc. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (unaudited) For the three and six months ended December 31, 2022 and 2021 Expressed in U.S. Dollars Three Months EndedSix Months Ended December 31December 31 2022 2021 2022 2021 $ $ $ $ Sales469,783 265,092 790,571 265,092 Cost of sales338,620 153,537 573,654 153,537 Inventory write-down- - 576,772 - Gross profit (loss)131,163 111,555 (359,855)111,555 Operating Expenses Research and development and patents851,356 2,537,070 2,230,009 4,028,322 General and administrative1,464,879 1,836,786 3,025,356 3,209,653 Amortization and depreciation49,049 49,797 98,097 78,329 Total operating expenses2,365,284 4,423,653 5,353,462 7,316,304 Other Income (Expense) Interest and other income115,797 26,277 188,384 31,425 Foreign exchange gain (loss)20,237 3,007 (76,554)(81,105)Loss before income taxes(2,098,087)(4,282,814)(5,601,487)(7,254,429) Tax expense(3,000)- (9,800)- Net loss for the period(2,101,087)(4,282,814)(5,611,287)(7,254,429) Net loss per share for the period Basic and diluted(0.91)(7.73)(3.54)(14.03)Weighted average outstanding common shares Basic and diluted2,300,526 553,894 1,583,073 516,933 Table 3: Condensed Consolidated Interim Statements of Cash Flows: InMed Pharmaceuticals Inc. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (unaudited)For the six months ended December 31, 2022 and 2021 Expressed in U.S. Dollars 2022 2021 Cash provided by (used in):$ $ Operating Activities Net loss(5,611,287)(7,254,429)Items not requiring cash: Amortization and depreciation98,097 78,329 Share-based compensation187,318 325,921 Amortization of right-of-use assets197,767 126,080 Loss on disposal of assets- 11,355 Interest income received on short-term investments(418)- Unrealized foreign exchange loss2,167 1,038 Inventory write-down576,772 - Bad debts25,085 - Changes in operating assets and liabilities: Inventories300,576 (501,700) Prepaids and other currents assets(29,706)847,374 Other non-current assets5,507 6,030 Accounts receivable(18,705)(2,285) Accounts payable and accrued liabilities(508,871)296,437 Deferred rent16,171 3,248 Lease obligations(209,112)(125,123)Total cash used in operating activities(4,968,639)(6,187,725) Investing Activities Cash acquired from acquisition of BayMedica- 91,566 Payment of acquisition consideration payable(500,000)- Purchase of property and equipment- (35,555)Total cash (used in) provided by investing activities(500,000)56,011 Financing Activities Shares issued for cash12,000,262 12,000,001 Share issuance costs(1,255,911)(1,294,247) Repayment of debt- (232,202) Settlement of debt upon acquisition of subsidiary- (425,000)Total cash provided by financing activities10,744,351 10,048,552 Increase in cash during the period5,275,712 3,916,838 Cash and cash equivalents beginning of the period6,176,866 7,363,126 Cash and cash equivalents end of the period11,452,578 11,279,964 About InMed: InMed Pharmaceuticals is a global leader in the research, development and manufacturing of rare cannabinoids, including clinical and preclinical programs targeting the treatment of diseases with high unmet medical needs. We also have significant know-how in developing proprietary manufacturing approaches to produce cannabinoids for various market sectors. For more information, visit www.inmedpharma.com. Investor Contact: Colin ClancyVice President, Investor Relationsand Corporate CommunicationsT: +1.604.416.0999E: cclancy@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: having a unique offering as the only company that has the breadth and depth in cannabinoid drug research, development and significant manufacturing know; several material milestones anticipated in the coming quarters; additional prospective patients have been identified for screening; advancing preclinical toxicology and having planned GLP studies planned for 2023 in advance of human clinical trials; being on track to begin the clinical trial in 2024; expecting in vivo studies to be completed and a candidate selected for further development in calendar 2Q 2023; BayMedica continuing to be a leading producer of CBC globally; having a strong pipeline of programs at various stages of development evaluating strategic options and long-term supply agreements for the BayMedica commercial segment; having projected cash runway to the end of calendar 2023, depending on how we prioritize our investment into various development activities; belief that hitting certain material milestones will increase shareholder value; all plans for our preclinical and clinical programs; being a global leader in the manufacturing and development of rare cannabinoids and delivering new treatment alternatives to patients that may benefit from cannabinoid-based pharmaceutical drugs. With respect to the forward-looking information contained in this news release, InMed has made numerous assumptions. 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. A complete discussion of the risks and uncertainties facing InMed’s stand-alone business is disclosed in InMed’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission on www.sec.gov. 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.

Complete Phase 2 clinical trial enrollment in Epidermolysis Bullosa in 1Q 2023 Progress preclinical research in glaucoma in preparation for human trials Advance research using rare cannabinoids in treating neurodegenerative diseases such as Alzheimer’s, Huntington’s and Parkinson’s VANCOUVER, British Columbia, Jan. 10, 2023 (GLOBE NEWSWIRE) -- InMed Pharmaceuticals Inc. (“InMed” or the “Company”) (Nasdaq: INM), a leader in the pharmaceutical research, development and manufacturing of rare cannabinoids and cannabinoid analogs, today outlines key accomplishments from 2022 and provides business update and catalysts for 2023. “Over the course of 2022, we strengthened our position as a leader in rare cannabinoid R&D, creating a unique offering as the only company that has the breadth and depth in cannabinoid drug research, development and significant manufacturing know-how. Despite the many economic pressures affecting businesses on a global scale, including challenging capital markets, particularly in biotech, InMed was able to advance its programs and achieve a number of key milestones. As we move forward into 2023, we are very encouraged by the strength of our pharmaceutical programs, with several material milestones anticipated in the coming quarters,” commented Eric A. Adams, InMed President and CEO. Key accomplishments in 2022: INM-755 in Epidermolysis Bullosa Activated 11 clinical trial sites in seven countries for the Phase 2 study Expanded from adult subjects to include adolescents following independent review of early safety data Progressed clinical trial with enrollment and treatment of 15 patients, with the 16th patient enrolled for treatment in early January 2023 INM-088 in Glaucoma Completed a pre-Investigational New Drug (“pIND”) application meeting with the FDA and gained alignment on the proposed design of the Phase 1-2 clinical trial program Advanced preclinical toxicology in preparation for clinical trial INM-900 Series in Neurodegenerative diseases Launched and advanced neurodegenerative disease program following promising research showing how specific cannabinoid analogs may inhibit or slow disease progression Filed international patent application using rare cannabinoids and analogs for the potential treatment of neurodegenerative diseases Grant received by research partner from NSERC to support preclinical research Cannabinoid Analogs Published North American patent for several cannabinoid analogs with broad claims of molecular structure, uses and methods of manufacturing Initiated research collaboration with leading expert to screen cannabinoid analogs for pharmacological properties and potential therapeutic applications Advanced two analogs for further lead identification in neurodegenerative disease Commercial Launched B2B sales of premium rare cannabinoids CBT, CBDV and THCV in addition to existing CBC sales in the health and wellness sector via our subsidiary, BayMedica Publications Published peer-reviewed study highlighting potential role of THCV, CBC and other rare cannabinoids on various skin conditions Published peer-reviewed article on the use of CBN as a potential treatment for glaucoma Corporate Raised in excess of $16M through several financings to fund advancement of pharmaceutical programs and corporate activities through the end of calendar year 2023. Business update and upcoming milestones: INM-755 – Phase 2 clinical trial in the treatment of Epidermolysis Bullosa To date, the Phase 2 clinical trial has enrolled 16 patients of its targeted 20 patients. Several additional prospective patients have been identified for screening at the clinical sites; therefore, the Company decided to extend the enrollment period to the end of March 2023. The clinical trial is evaluating the safety of INM-755 cannabinol cream and its preliminary efficacy in treating symptoms of itch, pain, and wound healing in patients with epidermolysis bullosa. As the trial is double blinded, InMed will remain blinded to INM-755 treatment outcomes until the last patient has completed treatment and the database is locked and analyzed. INM-088 – Advancing towards human trials The Company continues to conduct the required preclinical work, including toxicology studies, and has planned several GLP studies in 2023 in advance of human clinical trials. Outcomes from our pre-IND meeting with the FDA in 2022 provided important feedback on our proposed preclinical studies and for the design of human clinical trials. Advancing to human trials in a disease indication with a very large patient population like glaucoma will be a significant development for the Company. We are on track to begin this clinical trial in 2024. INM-900 – Developing a new approach in neurodegenerative disease Cannabinoids are known to be highly lipophilic and can cross the blood brain barrier, making the non-psychedelic cannabinoids attractive pharmaceutical agents for targeting neurological disorders. Our pipeline was expanded this year with the addition of our neurodegenerative disease program. With recent promising preclinical data, InMed plans to expedite its INM-900 program for the potential treatment of neurodegenerative diseases such as Alzheimer’s Disease, Parkinson’s Disease, and Huntington’s Disease. Our research demonstrated the neuroprotective effects of specific cannabinoid analogs and their potential to improve neuronal function. Two cannabinoid analogs are being assessed in in vivo models of neurodegenerative disease. Our approach may target multiple novel disease pathways versus the majority of drugs currently in clinical development for these diseases. Novel cannabinoid analogs – protecting the R&D investment InMed continues to develop a valuable library of novel, proprietary cannabinoid analogs. These analogs are being selectively screened and developed for targeting specific disease outcomes, safety pro and/or pharmacological properties such as improved delivery. In addition, these novel cannabinoid analogs are patentable, increasing their commercial attractiveness for internal development or as licensing candidates to other drug development companies. BayMedica commercial business Our efforts in the first half of 2022 were primarily focused on advancing the commercial side of the business following the acquisition of BayMedica in late 2021. Although BayMedica continues to be a reliable source of rare cannabinoids, demand has not accelerated as quickly as anticipated for a variety of reasons. As we enter 2023, we will continue to evaluate strategic options and long-term supply agreements for this business segment. In 2022, BayMedica supplied highly pure rare cannabinoids for use in Radicle Science, Inc.’s Radicle Energy rare cannabinoid study to assess the effects of delta-9 THCV on energy, focus/attention, appetite and weight/body mass index (BMI). The study is part of Radicle Science’s large-scale evaluations of several rare cannabinoids, involving up to 10,000 participants in total. The consumer-driven trial is complete and results are expected in the first half of 2023, providing much needed supportive data to demonstrate the effects of delta-9 THCV. Business development The Company continues to evaluate and pursue business development opportunities which align strategically with the Company’s current direction and pharmaceutical programs. In light of current capital market challenges, the Company’s main priority is to continue to adequately resource the Company’s activities while maintaining a healthy balance sheet. With the completion of recent financings and depending on how we prioritize investment into our various development activities, InMed has a projected cash runway into early 2024, allowing the Company to hit certain material milestones over the coming year which we believe will increase shareholder value. Management looks forward to updating shareholders over the coming months. About InMed: InMed Pharmaceuticals is a global leader in the research, development and manufacturing of rare cannabinoids, including clinical and preclinical programs targeting the treatment of diseases with high unmet medical needs. We also have significant know-how in developing proprietary manufacturing approaches to produce cannabinoids for various market sectors. For more information, visit . Investor Contact: Colin Clancy Vice President, Investor Relations and Corporate Communications T: +1.604.416.0999 E: cclancy@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: having a unique offering as the only company that has the breadth and depth in cannabinoid drug research, development and significant manufacturing know; being very encouraged by the strength of our pharmaceutical programs, with several material milestones anticipated in the coming quarters; research showing how specific cannabinoid analogs may inhibit or slow disease progression; additional prospective patients have been identified for screening at the clinical sites; extending the enrollment period to the end of March 2023; advancing preclinical toxicology and having several GLP studies planned for 2023 in advance of human clinical trials; being on track to begin this clinical trial in 2024; plans to expedite its INM-900 program for the potential treatment of neurodegenerative diseases such as Alzheimer’s Disease, Parkinson’s Disease, and Huntington’s Disease; analogs being selectively screened and developed for targeting specific disease outcomes, safety pro and/or pharmacological properties such as improved delivery; developing a valuable library of novel, proprietary cannabinoid analogs; commercial attractiveness of analogs for internal development or as licensing candidates; evaluating strategic options and long-term supply agreements for the BayMedica commercial segment; Radicle Science results expected in the first half of 2023; evaluating and pursuing business development opportunities which align strategically with the Company’s current direction and pharmaceutical programs; having projected cash runway into early 2024, depending on how we prioritize our investment into various development activities; belief that hitting certain material milestones will increase shareholder value; all plans for our preclinical and clinical programs; being a global leader in the manufacturing and development of rare cannabinoids and delivering new treatment alternatives to patients that may benefit from cannabinoid-based pharmaceutical drugs. 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.