Breaking Down InMed Pharmaceuticals Inc. (INM) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments in the pharmaceutical sector? Have you ever wondered about the financial stability and future prospects of companies like InMed Pharmaceuticals Inc. (INM)? With a recent fiscal year showing a net loss of $7.7M, but BayMedica segment sales reaching $4.6M, marking an 11% increase, understanding InMed's financial health is crucial. Let's dive into the key insights that can help you make informed decisions.

InMed Pharmaceuticals Inc. (INM) Revenue Analysis

Understanding InMed Pharmaceuticals Inc.'s financial health requires a detailed look at its revenue streams. Here's a breakdown of the company's revenue performance:

Breakdown of Primary Revenue Sources:

• InMed Pharmaceuticals Inc. primarily generates revenue through its wholly-owned subsidiary, BayMedica, LLC.
• BayMedica focuses on the commercialization of non-intoxicating rare cannabinoids in the health and wellness sector.

Year-over-Year Revenue Growth Rate:

• In the fiscal year 2024, InMed Pharmaceuticals reported total sales of $4.6 million for BayMedica.
• This represents an 11% increase compared to the previous fiscal year.
• For the trailing twelve months ending December 31, 2024, the company's revenue was $4.83 million, a decrease of 11.94% year-over-year.

Contribution of Different Business Segments to Overall Revenue:

• The company has two reportable segments: InMed Pharma and BayMedica Commercial.
• The pharmaceutical-related research and development carried out at BayMedica is included with the InMed Pharma segment.
• BayMedica's commercial operations are a key revenue driver.

Analysis of Significant Changes in Revenue Streams:

• In the second quarter of fiscal year 2025, which ended December 31, 2024, sales were $1,111,707, a decrease from $1,240,200 in the same quarter of the previous year; this decrease is attributed to lowered product pricing due to increased competition.
• Despite decreased revenues in the second quarter of fiscal year 2025, BayMedica achieved a net income of $0.23 million, a 189% improvement over the same period last year; this growth was primarily driven by a reduction in inventory write-downs and lower operational expenses.

Financial data and reports are available on InMed Pharmaceuticals' website and the : Mission Statement, Vision, & Core Values of InMed Pharmaceuticals Inc. (INM).

InMed Pharmaceuticals Inc. (INM) Profitability Metrics

Analyzing InMed Pharmaceuticals Inc.'s profitability involves examining several key financial metrics that provide insights into the company's financial health. These metrics include gross profit, operating profit, and net profit margins. Understanding these figures and their trends over time is crucial for investors. You can gain further insights by visiting: Breaking Down InMed Pharmaceuticals Inc. (INM) Financial Health: Key Insights for Investors.

As of the fiscal year 2024, detailed profitability figures for InMed Pharmaceuticals Inc. require a thorough review of their financial statements. Since specific numbers can fluctuate annually, it's essential to consult the latest reports for the most accurate data.

Here's a general framework for evaluating InMed Pharmaceuticals Inc.’s profitability:

• Gross Profit: This is calculated as revenue less the cost of goods sold (COGS). It indicates how efficiently InMed Pharmaceuticals Inc. manages its production costs.
• Operating Profit: This is earnings before interest and taxes (EBIT), which represents the profit earned from the company's core business operations. It is calculated by subtracting operating expenses from gross profit.
• Net Profit: This is the profit remaining after all expenses, including interest and taxes, have been deducted from revenue. It represents the actual profit available to shareholders.

Profit margins are derived by dividing each profit figure by the total revenue. For instance, the gross profit margin is (Gross Profit / Revenue) 100, providing a percentage that’s easily comparable.

To assess InMed Pharmaceuticals Inc.'s operational efficiency, one might consider:

• Cost Management: How effectively the company controls its expenses.
• Gross Margin Trends: Whether the gross margin is improving, declining, or remaining stable, which can indicate changes in production efficiency or pricing strategies.

A comparative analysis against industry averages can highlight whether InMed Pharmaceuticals Inc. is performing better or worse than its peers. However, without specific 2024 data, this remains a general guideline for analysis.

For example, a hypothetical comparison might look like this:

In this hypothetical scenario, InMed Pharmaceuticals Inc. outperforms the industry average across all three metrics. However, real-world data is necessary for an accurate assessment.

InMed Pharmaceuticals Inc. (INM) Debt vs. Equity Structure

Understanding how InMed Pharmaceuticals Inc. (INM) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its activities. Let's delve into these key aspects.

As of the third quarter of fiscal year 2024, InMed Pharmaceuticals Inc. (INM) reported the following debt situation:

• Total current liabilities stood at $2.22 million.
• Total liabilities amounted to $2.55 million.

The company's financing strategy involves balancing debt and equity. While specific details on long-term debt, recent debt issuances, credit ratings, or refinancing activities are not available in the provided data, the debt-to-equity ratio is a key metric to consider.

The balance sheet from Q3 2024 shows:

• Total Stockholders' Equity: $1.95 million

The debt-to-equity ratio can be calculated using the available data. In this case, it would be Total Liabilities divided by Total Stockholders' Equity. Using the amounts from the third quarter of fiscal year 2024, the calculation is as follows:

Debt-to-Equity Ratio = Total Liabilities / Total Stockholders' Equity = $2.55 million / $1.95 million = 1.31

A debt-to-equity ratio of 1.31 indicates that InMed Pharmaceuticals Inc. (INM) has $1.31 of debt for every dollar of equity. This ratio provides insight into the company's financial leverage and risk. Comparing this ratio to industry standards can provide further context.

Here is a summary of InMed Pharmaceuticals Inc.'s (INM) liabilities and equity as of Q3 2024:

For more insights into InMed Pharmaceuticals Inc. (INM), check out: Exploring InMed Pharmaceuticals Inc. (INM) Investor Profile: Who’s Buying and Why?

InMed Pharmaceuticals Inc. (INM) Liquidity and Solvency

Analyzing a company's liquidity and solvency is crucial for investors to gauge its financial health and ability to meet its short-term and long-term obligations. For InMed Pharmaceuticals Inc. (INM), assessing these metrics provides insights into its operational efficiency and financial stability.

Here's an overview of key liquidity measures for InMed Pharmaceuticals Inc. (INM):

• Current Ratio: The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations with its current assets. As of the quarter ended March 31, 2024, InMed Pharmaceuticals Inc.'s current ratio was 2.5. This indicates that the company has $2.50 of current assets for every $1.00 of current liabilities.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. As of the quarter ended March 31, 2024, InMed Pharmaceuticals Inc.'s quick ratio was 2.5. This suggests the company can comfortably cover its short-term liabilities with its most liquid assets.

Working capital is a measure of a company's short-term liquidity, calculated as the difference between current assets and current liabilities. Analyzing the trend of working capital helps understand the company's ability to fund its operations.

InMed Pharmaceuticals Inc.'s cash flow statements provide a detailed look at the company's cash inflows and outflows from its operating, investing, and financing activities. Here's a brief overview:

• Operating Activities: For the year ended September 30, 2023, InMed Pharmaceuticals Inc. reported net cash used in operating activities of approximately $9.46 million. This reflects the cash spent on the company's core business operations.
• Investing Activities: For the year ended September 30, 2023, InMed Pharmaceuticals Inc. reported net cash used in investing activities of approximately $0.03 million.
• Financing Activities: For the year ended September 30, 2023, InMed Pharmaceuticals Inc. reported net cash provided by financing activities of approximately $10.32 million, mainly from the proceeds of issuance of common stock.

Below is a table summarizing key financial data for InMed Pharmaceuticals Inc. based on available information. Note that values are in thousands of U.S. dollars, except for share data.

Based on the information available, InMed Pharmaceuticals Inc. appears to have a solid liquidity position with current and quick ratios above 1.0, indicating the company's ability to cover its short-term liabilities with its current assets. However, the company's cash flow from operating activities shows a net cash outflow, which is typical for many biotechnology companies in the research and development phase. The company relies on financing activities, particularly the issuance of common stock, to maintain its cash reserves.

For further insights into the company's strategic direction, see Mission Statement, Vision, & Core Values of InMed Pharmaceuticals Inc. (INM).

InMed Pharmaceuticals Inc. (INM) Valuation Analysis

Determining whether InMed Pharmaceuticals Inc. (INM) is overvalued or undervalued requires a multifaceted approach, considering several key financial metrics and market indicators. These include relative valuation ratios, stock price performance, and analyst opinions.

Currently, information on standard valuation ratios such as price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) for InMed Pharmaceuticals Inc. (INM) is not readily available. This could be due to the company's specific financial situation, such as a lack of consistent profitability, which can make these metrics less meaningful. For companies in the biotechnology sector, which often prioritize research and development over immediate profits, these traditional valuation methods may not always provide an accurate picture.

Analyzing InMed Pharmaceuticals Inc.'s (INM) stock price trends over the past 12 months provides insights into market sentiment and investor confidence. However, specific figures for this period need to be obtained from reliable financial data sources to ensure accuracy. Monitoring these trends helps investors gauge the stock's volatility and overall performance relative to the market and its peers.

Dividend yield and payout ratios are not applicable to InMed Pharmaceuticals Inc. (INM), as the company does not currently offer dividends. This is common for growth-oriented companies in the biotech industry that reinvest earnings into research and development to drive future growth.

To gain a comprehensive understanding of InMed Pharmaceuticals Inc.'s (INM) valuation, it is essential to consider analyst consensus. Analyst ratings typically fall into categories such as 'buy,' 'hold,' or 'sell,' reflecting their overall sentiment on the stock's potential. The consensus target price represents the average price level analysts believe the stock will reach within a specified time frame, usually 12 months.

Based on available information, as of a recent assessment, the analyst consensus on InMed Pharmaceuticals Inc. (INM) is a 'buy', with a price target of $30.00.

For further insights into InMed Pharmaceuticals Inc. (INM) and its investors, explore Exploring InMed Pharmaceuticals Inc. (INM) Investor Profile: Who’s Buying and Why?

InMed Pharmaceuticals Inc. (INM) Risk Factors

Investing in InMed Pharmaceuticals Inc. (INM) involves navigating a complex landscape of risks, both internal and external, that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and company-specific operational and strategic challenges. Understanding these factors is crucial for investors.

Here's a breakdown of key risks:

• Industry Competition: The pharmaceutical industry is intensely competitive. InMed faces competition from established pharmaceutical companies with greater financial, technical, manufacturing, marketing, and distribution resources. These competitors may develop and market products that are more effective, safer, or less expensive than InMed’s, which could reduce the demand for InMed’s products and negatively affect its financial performance.
• Regulatory Changes: The development, manufacturing, and marketing of pharmaceutical products are subject to extensive regulation by governmental authorities in the United States, Canada, and other countries. Changes in these regulations or the introduction of new regulations could increase the costs of product development, clinical trials, and manufacturing. It may also lead to delays in obtaining regulatory approvals, which could adversely affect InMed’s business and financial results.
• Market Conditions: Economic downturns, changes in healthcare policies, and shifts in market demand for cannabinoid-based therapies can all impact InMed's financial stability. Unfavorable market conditions may reduce investment in the biotechnology sector, making it more difficult for InMed to raise capital when needed.

InMed Pharmaceuticals Inc. (INM) highlights several key risk factors in its reports and filings that could significantly impact its financial condition and operational results. These risks include:

• Reliance on Key Technologies and Intellectual Property: InMed's success heavily depends on its ability to protect its proprietary technologies and intellectual property. Any challenges to or infringement of its patents or other intellectual property rights could significantly harm its competitive position.
• Clinical Trial Risks: The success of InMed's product candidates is contingent upon the positive outcomes of clinical trials. These trials are subject to numerous risks, including delays in enrollment, unexpected adverse events, and failures to demonstrate efficacy. Such setbacks could delay or prevent the approval of its products and negatively impact its value.
• Financing and Capital Requirements: As a research and development-stage company, InMed requires substantial capital to fund its operations. There is a risk that it may not be able to secure additional financing on favorable terms or at all, which could force it to delay, reduce, or eliminate its research and development programs.

While specific mitigation strategies are not detailed here, companies like InMed typically employ several approaches to manage these risks:

• Diversification of Product Pipeline: Developing a range of product candidates can reduce the impact if one product fails in clinical trials or encounters regulatory hurdles.
• Strategic Partnerships: Collaborating with larger pharmaceutical companies can provide financial support, expertise, and resources for product development and commercialization.
• Robust Intellectual Property Protection: Continuously seeking and defending patents and other intellectual property rights to protect its innovations.
• Proactive Regulatory Engagement: Maintaining open communication with regulatory agencies to understand and adapt to changing requirements.
• Financial Planning and Management: Implementing careful financial planning and cost management strategies to ensure efficient use of resources and maintain financial stability.

For more insights into InMed Pharmaceuticals Inc. (INM), check out: Exploring InMed Pharmaceuticals Inc. (INM) Investor Profile: Who’s Buying and Why?

InMed Pharmaceuticals Inc. (INM) Growth Opportunities

For InMed Pharmaceuticals Inc. (INM), several factors could drive future growth. These include product innovations, strategic market expansions, and potential acquisitions.

Key growth drivers for InMed Pharmaceuticals Inc. (INM):

• Product Innovations: Development and successful commercialization of new cannabinoid-based therapies.
• Market Expansions: Entering new geographic markets or expanding the applications of existing products.
• Strategic Partnerships: Collaborations with other pharmaceutical companies or research institutions to accelerate drug development.

Future revenue growth and earnings estimates for InMed Pharmaceuticals Inc. (INM) are contingent upon successful clinical trials and regulatory approvals. Investors should closely monitor these milestones.

Strategic initiatives and partnerships that may propel future growth:

• Clinical Trial Advancement: Progress in ongoing clinical trials for lead drug candidates.
• Intellectual Property: Strengthening the company's patent portfolio to protect its innovations.
• Regulatory Milestones: Achieving key regulatory designations and approvals.

InMed Pharmaceuticals Inc. (INM) competitive advantages that could position the company for growth:

• Proprietary Technology: Unique drug delivery systems or formulations.
• Scientific Expertise: A team with deep knowledge in cannabinoid science and drug development.
• Strategic Focus: Concentrating on specific therapeutic areas with unmet needs.

Comprehensive financial data and further insights are available in the full analysis: Breaking Down InMed Pharmaceuticals Inc. (INM) Financial Health: Key Insights for Investors