InMed Pharmaceuticals Announces Pro Forma Financials Reflecting BayMedica Commercial Wind Down

Key Highlights from InMed Pharmaceuticals’ Recent 8-K Filing

InMed Pharmaceuticals Inc. (Nasdaq: INM) has released unaudited pro forma condensed consolidated financial information to reflect the company’s strategic decision to wind down and exit BayMedica LLC’s commercial operations business segment, retroactively presenting it as discontinued operations effective July 1, 2024.

What This Means for Investors

• Discontinuation of BayMedica’s Commercial Operations: The company’s pro forma statements now treat BayMedica LLC’s commercial business as a discontinued operation. This significant change impacts the company’s consolidated financials and signals a major strategic shift.
• Restated Financials: All comparative figures for the six months ended December 31, 2025, and the fiscal year ended June 30, 2025, have been restated to remove BayMedica’s commercial operations from continuing operations.
• Potential Price Sensitivity: The exit from BayMedica’s commercial segment could be interpreted as a move to focus resources on core R&D or other strategic priorities. However, this also means the loss of commercial revenues and associated gross profits from this business.
• Balance Sheet Impact: The company’s assets and liabilities have been adjusted to reflect the reclassification, with current assets of discontinued operations presented at \$1.38 million and current liabilities of discontinued operations at \$994,161. Pro forma shareholders’ equity decreases by \$670,000 due to these adjustments.
• Operating Results Impact:
  • For the six months ended December 31, 2025, sales of \$1.94 million and gross profit of \$587,353 from BayMedica are removed. The company’s net loss per share remains at \$(0.95), but this is now entirely from continuing operations.
  • For the year ended June 30, 2025, sales of \$4.94 million and gross profit of \$1.71 million are removed. The pro forma net loss per share is now \$(8.36), with \$(8.90) per share from continuing operations and \$0.54 per share net income from discontinued operations.
• Future Uncertainties: The company has not yet completed its determination of the fair value of BayMedica’s assets and liabilities. There could be further write-downs or charges in the future related to these discontinued operations, which are not reflected in the current pro forma adjustments.

Detailed Financial Impacts

• Balance Sheet (as of December 31, 2025):
  • Cash and cash equivalents: \$6.74 million (down \$215,389 from adjustments)
  • Accounts receivable: \$0 (fully reclassified to discontinued operations)
  • Inventories: \$0 (fully reclassified to discontinued operations)
  • Current assets of discontinued operations: \$1.38 million added
  • Total current assets: unchanged at \$8.79 million
  • Accounts payable and accrued liabilities: reduced by \$324,161 to \$747,710
  • Current liabilities of discontinued operations: \$994,161 added
  • Total liabilities: increased by \$670,000 to \$2.27 million
  • Shareholders’ equity: decreased by \$670,000 to \$8.92 million
• Statement of Operations (Six Months Ended Dec 31, 2025):
  • Sales: Reduced from \$1.94 million to \$0
  • Cost of sales: Reduced from \$1.35 million to \$0
  • Research & development: Reduced slightly by \$12,146 to \$1.20 million
  • General & administrative: Reduced by \$590,803 to \$2.56 million
  • Net loss: Remains at \$(3.76) million, \$(0.95) per share
• Statement of Operations (Year Ended June 30, 2025):
  • Sales: Reduced from \$4.94 million to \$0
  • Cost of sales: Reduced from \$3.24 million to \$0
  • Research & development: Reduced by \$32,718 to \$2.82 million
  • General & administrative: Reduced by \$1.14 million to \$5.41 million
  • Net loss: Remains at \$(8.16) million, but pro forma net loss per share is \$(8.36)
• No Current Asset Write-Down Reflected: The company states it has not yet estimated the fair value or any potential asset impairments or write-downs associated with the wind down. Future adjustments are possible.

What Investors Should Watch

• Strategic Focus: The wind down of BayMedica’s commercial segment may allow InMed to redirect resources, but also removes a revenue-generating business. Investors should monitor future company communications for further details on strategic direction and any asset impairment charges.
• Financial Volatility: The restatement and removal of commercial operations may result in increased volatility in the company’s reported results over the coming quarters, as the company finalizes asset valuations and as discontinued operations are wound down.
• Potential Share Price Impacts: The removal of a commercial revenue stream, potential future write-downs, and increased focus on R&D or other segments could affect investor sentiment and share price in both directions, depending on market interpretation of these developments.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the company’s full filings and consult their financial advisor before making investment decisions. The company’s future performance may differ materially from the pro forma financials presented due to a range of factors, including but not limited to the outcome of the asset wind down and prevailing market conditions.

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