0001213900-22-026136 | 10-Q | XBRL Viewer | Inmed Pharmaceuticals INC

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Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Mar. 31, 2022	May 13, 2022
Document Information Line Items
Entity Registrant Name	INMED PHARMACEUTICALS INC.
Trading Symbol	INM
Document Type	10-Q
Current Fiscal Year End Date	--06-30
Entity Common Stock, Shares Outstanding		14,641,645
Amendment Flag	false
Entity Central Index Key	0001728328
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Ex Transition Period	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-39685
Entity Incorporation, State or Country Code	A1
Entity Tax Identification Number	98-1067994
Entity Address, Address Line One	Suite 310 - 815 W. Hastings Street
Entity Address, Address Line Two	Vancouver
Entity Address, City or Town	B.C
Entity Address, Country	CA
Entity Address, Postal Zip Code	V6C 1B4
City Area Code	(604)
Local Phone Number	669-7207
Title of 12(b) Security	Common Shares, no par value
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

Condensed Consolidated Interim Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2022	Jun. 30, 2021
Current
Cash and cash equivalents	$ 5,898,313	$ 7,363,126
Short-term investments	46,098	46,462
Accounts receivable	70,554	11,919
Inventories	1,420,382
Prepaids and other assets	1,311,539	956,762
Total current assets	8,746,886	8,378,269
Non-Current
Property and equipment, net	1,002,846	326,595
Intangible assets, net	2,355,401	1,061,697
In-process research and development	1,249,000
Goodwill	2,023,039
Other assets	108,625	14,655
Total Assets	15,485,797	9,781,216
Current
Accounts payable and accrued liabilities	2,866,927	2,134,878
Short-term debt	29,312
Current portion of lease obligations	399,904	80,483
Deferred revenue	8,902
Acquisition consideration payable	800,457
Total current liabilities	4,105,502	2,215,361
Non-current
Lease obligations	493,562	189,288
Total Liabilities	4,599,064	2,404,649
Shareholders’ Equity
Common shares, no par value, unlimited authorized shares: 14,283,848 (June 30, 2021 - 8,050,707) issued and outstanding	69,825,331	60,587,417
Additional paid-in capital	26,515,397	21,513,051
Accumulated deficit	(85,582,564)	(74,852,470)
Accumulated other comprehensive income	128,569	128,569
Total Shareholders’ Equity	10,886,733	7,376,567
Total Liabilities and Shareholders’ Equity	$ 15,485,797	$ 9,781,216

Condensed Consolidated Interim Balance Sheets (Unaudited) (Parentheticals) - $ / shares	9 Months Ended	12 Months Ended
	Mar. 31, 2022	Jun. 30, 2021
Statement of Financial Position [Abstract]
Common stock par value (in Dollars per share)
Common stock, shares authorized	Unlimited	Unlimited
Common stock, shares issued	14,283,848	8,050,707
Common stock, shares outstanding	14,283,848	8,050,707

Condensed Consolidated Interim Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Sales	$ 309,585		$ 574,677
Cost of sales	127,308		280,845
Gross profit	182,277		293,832
Operating Expenses
Research and development and patents	1,753,545	1,772,593	5,781,867	3,621,697
General and administrative	1,915,017	1,333,725	5,124,670	2,918,067
Amortization and depreciation	53,340	27,421	131,669	92,218
Total operating expenses	3,721,902	3,133,739	11,038,206	6,631,982
Other Income (Expense)
Interest and other income	30,964	3,797	62,389	11,192
Finance expense				(360,350)
Unrealized gain on derivative warrants liability				242,628
Foreign exchange gain (loss)	32,996	28,467	(48,109)	(205,824)
Net loss for the period	(3,475,665)	(3,101,475)	(10,730,094)	(6,944,336)
Other Comprehensive Loss
Foreign currency translation gain				430,443
Total comprehensive loss for the period	$ (3,475,665)	$ (3,101,475)	$ (10,730,094)	$ (6,513,893)
Net loss per share for the period
Basic and diluted (in Dollars per share)	$ (0.25)	$ (0.41)	$ (0.81)	$ (1.11)
Weighted average outstanding common shares
Basic and diluted (in Shares)	14,151,544	7,549,040	13,326,754	6,277,824

Condensed Consolidated Interim Statements of Shareholders’ Equity (Unaudited) - USD ($)	Common Shares	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income - Foreign Exchange	Total
Balance at Jun. 30, 2020	$ 53,065,240	$ 17,764,333	$ (64,649,381)	$ (301,874)	$ 5,878,318
Balance (in Shares) at Jun. 30, 2020	5,220,707
Activity for the six months to December 31, 2020
Public offering	$ 6,052,000				6,052,000
Public offering (in Shares)	1,780,000
Share issuance costs	$ (1,109,128)				(1,109,128)
Loss and comprehensive income for the period			(3,842,861)	430,443	(3,412,418)
Share-based compensation		182,041			182,041
Balance at Dec. 31, 2020	$ 58,008,112	17,946,374	(68,492,242)	128,569	7,590,813
Balance (in Shares) at Dec. 31, 2020	7,000,707
Activity for the six months to December 31, 2020
Private placement	$ 2,917,157	1,545,343			4,462,500
Private placement (in Shares)	1,050,000
Reclassification of warrants		1,763,980			1,763,980
Share issuance costs	(337,852)	(170,798)			(508,650)
Loss for the period			(3,101,475)		(3,101,475)
Share-based compensation		207,302			207,302
Activity for the nine months to March 31, 2021	$ 7,522,177	3,527,868	(6,944,336)	430,443	4,536,152
Activity for the nine months to March 31, 2021 (in Shares)	2,830,000
Balance at Mar. 31, 2021	$ 60,587,417	21,292,201	(71,593,717)	128,569	10,414,470
Balance (in Shares) at Mar. 31, 2021	8,050,707
Balance at Jun. 30, 2021	$ 60,587,417	21,513,051	(74,852,470)	128,569	7,376,567
Balance (in Shares) at Jun. 30, 2021	8,050,707
Activity for the six months to December 31, 2020
Private placement	$ 1,459,051	10,540,635			11,999,686
Private placement (in Shares)	890,000
Share issuance costs	$ (247,336)	(1,786,831)			(2,034,167)
Agents’ warrants		739,920			739,920
Exercise of pre-funded warrants	$ 4,283,969	(4,283,654)			315
Exercise of pre-funded warrants (in Shares)	3,146,327
Acquisition of BayMedica	$ 3,013,500				3,013,500
Acquisition of BayMedica (in Shares)	2,050,000
Loss for the period			(7,254,429)		(7,254,429)
Share-based compensation		325,921			325,921
Balance at Dec. 31, 2021	$ 69,096,601	27,049,042	(82,106,899)	128,569	14,167,313
Balance (in Shares) at Dec. 31, 2021	14,137,034
Activity for the six months to December 31, 2020
Exercise of warrants	$ 728,730	(728,730)
Exercise of warrants (in Shares)	146,814
Loss for the period			(3,475,665)		(3,475,665)
Share-based compensation		195,085			195,085
Activity for the nine months to March 31, 2022	$ 9,237,914	5,002,346	(10,730,094)		3,510,166
Activity for the nine months to March 31, 2022 (in Shares)	6,233,141
Balance at Mar. 31, 2022	$ 69,825,331	$ 26,515,397	$ (85,582,564)	$ 128,569	$ 10,886,733
Balance (in Shares) at Mar. 31, 2022	14,283,848

Condensed Consolidated Interim Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating Activities
Net loss for the period	$ (10,730,094)	$ (6,944,336)
Items not requiring cash:
Amortization and depreciation	131,669	92,218
Share-based compensation	521,006	389,343
Amortization of right-of-use assets	226,061	88,620
Loss on disposal of assets	11,355
Interest income received on short-term investments	46	159
Unrealized gain on derivative warrants liability		(242,628)
Unrealized foreign exchange loss	312	(571)
Payments on lease obligations	(232,633)	(66,537)
Finance expense		360,350
Changes in non-cash working capital:
Inventories	(933,260)
Prepaids and other assets	(323,653)	(1,192,936)
Other non-current assets	6,580	(14,161)
Accounts receivable	(22,535)	(18,183)
Accounts payable and accrued liabilities	(195,125)	(235,892)
Deferred revenue	3,760
Total cash used in operating activities	(11,536,511)	(7,784,554)
Investing Activities
Cash acquired from acqusition of BayMedica	91,566
Purchase of property and equipment	(39,108)
Total cash provided by investing activities	52,458
Financing Activities
Shares issued for cash	12,000,001	12,472,500
Share issuance costs	(1,294,247)	(1,534,602)
Repayment of debt	(261,514)
Settlement of debt upon acquisition of subsidiary	(425,000)
Total cash provided by financing activities	10,019,240	10,937,898
Effects of foreign exchange on cash and cash equivalents		494,960
Increase (decrease) in cash during the period	(1,464,813)	3,648,304
Cash and cash equivalents beginning of the period	7,363,126	5,805,809
Cash and cash equivalents end of the period	$ 5,898,313	$ 9,454,113

Corporate Information and Continuing Operations

9 Months Ended

Mar. 31, 2022

Corporate Information and Continuing Operations [Abstract]

CORPORATE INFORMATION AND CONTINUING OPERATIONS

1.	CORPORATE INFORMATION AND CONTINUING OPERATIONS

InMed Pharmaceuticals Inc. (“InMed” or the “Company”) was incorporated in the Province of British Columbia on May 19, 1981 under the Business Corporations Act of British Columbia. InMed is a clinical stage pharmaceutical company developing a pipeline of prescription-based products, including rare cannabinoids and novel cannabinoid analogs, targeting the treatment of diseases with high unmet medical needs as well as developing proprietary manufacturing technologies to produce rare cannabinoids for sale in the health and wellness industry.

The Company’s shares are listed on the Nasdaq Capital Market (“Nasdaq”) under the trading symbol “INM”. InMed’s corporate office and principal place of business is located at #310 – 815 West Hastings Street, Vancouver, B.C., Canada, V6C 1B4.

In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40), the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the condensed consolidated interim financial statements are issued.

Through March 31, 2022, the Company has funded its operations primarily with proceeds from the sale of common stock. The Company has incurred recurring losses and negative cash flows from operations since its inception, including net losses of $10.7 million and $6.9 million for the nine months ended March 31, 2022 and 2021, respectively. In addition, the Company had an accumulated deficit of $85.6 million as of March 31, 2022 (June 30, 2021 - $74.9 million). The Company expects to continue to generate operating losses for the foreseeable future.

As of the issuance date of these condensed consolidated interim financial statements, the Company expects its cash and cash equivalents of $5.9 million as of March 31, 2022 will be sufficient to fund its operating expenses and capital expenditure requirements into the second quarter of fiscal 2023 (being the fourth calendar quarter of 2022). The future viability of the Company beyond that point is dependent on its ability to raise additional capital to finance its operations. As a result, the Company has concluded that there is substantial doubt about its ability to continue as a going concern within one year after the date that the condensed consolidated interim financial statements are issued.

The Company expects to continue to seek additional funding through equity financings, debt financings or other capital sources, including collaborations with other companies, government contracts or other strategic transactions. The Company may not be able to obtain financing on acceptable terms, or at all. The terms of any financing may adversely affect the holdings or the rights of the Company’s existing stockholders.

These condensed consolidated interim financial statements have been prepared on a going concern basis, which assumes that the Company will be able to meet its commitments, realize its assets and discharge its liabilities in the normal course. These condensed consolidated interim financial statements do not reflect adjustments to the carrying values of assets and liabilities that would be necessary if the Company was unable to continue as a going concern and such adjustments could be material.

Significant and New Accounting Policies

9 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

SIGNIFICANT AND NEW ACCOUNTING POLICIES

2.	SIGNIFICANT AND NEW ACCOUNTING POLICIES

(a)

Basis of Presentation

These unaudited condensed consolidated interim financial statements have been prepared in accordance with generally accepted accounting principles as applied in the United States (“US GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, these financial statements do not include all the information and footnotes required for complete financial statements and should be read in conjunction with the audited consolidated financial statements of the Company and the accompanying notes thereto for the year ended June 30, 2021.

These unaudited condensed consolidated interim financial statements reflect all adjustments, consisting solely of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The results of operations for the three and nine months ended March 31, 2022 and 2021 are not necessarily indicative of results that can be expected for a full year. These unaudited condensed consolidated interim financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company for the year ended June 30, 2021, except for the new accounting guidance adopted during the period.

The functional currency of the Company and its subsidiaries is the U.S. Dollar. These condensed consolidated interim financial statements are presented in U.S. Dollars. References to “$” and “US$” are to United States (“U.S.”) dollars and references to “C$” are to Canadian dollars.

(b)

Use of Estimates

The preparation of financial statements in compliance with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the balance sheet date, and the corresponding revenues and expenses for the periods reported. It also requires management to exercise judgment in applying the Company’s accounting policies. In the future, actual experience may differ from these estimates and assumptions. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to these condensed consolidated interim financial statements are the estimated fair values of the assets acquired and liabilities assumed in acquisitions, the estimate of useful life of intangible assets, the application of the going concern assumption, the impairment assessment for long-lived assets, and determining the fair value of share-based payments and warrants.

(c)

COVID-19 Impacts

On March 11, 2020 the COVID-19 outbreak was declared a pandemic by the World Health Organization. The full extent to which the COVID-19 pandemic may directly or indirectly impact the Company’s business, results of operations and financial condition, including expenses, research and development costs and employee-related amounts, will depend on future developments that are evolving and highly uncertain, such as the duration and severity of outbreaks, including potential future waves or cycles, and the effectiveness of actions taken to contain and treat COVID-19. The Company considered the potential impact of COVID-19 when making certain estimates and judgments relating to the preparation of these condensed consolidated interim financial statements. While there was no material impact to the Company’s condensed consolidated interim financial statements as of and for the three and nine months ended March 31, 2022, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in a material impact to the Company’s consolidated financial statements in future reporting periods.

(d)

Business Combinations

Business combinations are accounted for using the acquisition method. The fair value of total purchase consideration is allocated to the fair values of identifiable tangible and intangible assets acquired and liabilities assumed, with the remaining amount being classified as goodwill. All assets, liabilities and contingent liabilities acquired or assumed in a business combination are recorded at their fair values at the date of acquisition. If the Company’s interest in the fair value of the acquiree’s net identifiable assets exceeds the cost of the acquisition, the excess is recognized in earnings or loss immediately. Transaction costs that are incurred in connection with a business combination, other than costs associated with the issuance of debt or equity securities, are expensed as incurred.

(e)

Accounts Receivable

Accounts receivable are recorded at invoiced amounts, net of any allowance for doubtful accounts. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable.

The Company evaluates the collectability of accounts receivable on a regular basis based upon various factors including the financial condition and payment history of customers, an overall review of collections experience on other accounts and economic factors or events expected to affect future collections experience. Expected credit losses on our accounts receivable were immaterial as at March 31, 2022 and June 30, 2021.

(f)

Inventories

Inventories are initially valued at weighted average cost and subsequently valued at the lower of weighted average cost and net realizable value. Costs included in inventories are raw materials, work-in-progress, and finished goods.

In determining any valuation allowances, the Company reviews inventory for obsolete, redundant, and slow-moving goods. At March 31, 2022, no amounts had been charged to the valuation allowance.

(g)

Revenue Recognition

The Company recognizes revenue when the Company satisfies the performance obligations under the terms of a contract and control of its products and services is transferred to its customers in an amount that reflects the consideration the Company expects to receive from its customers in exchange for those products and services. ASC 606, Revenue from Contracts with Customers defines a five-step process to recognize revenue that requires judgment and estimates, including identifying the contract with the customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when or as the performance obligation is satisfied.

Revenue consists of manufacturing and distribution sales of bulk rare cannabinoids, which are generally recognized at a point in time when control over the products have been transferred to the customer. Control of the products are considered transferred to the customer once they have been shipped to the customer and title and risk of loss have been transferred to the customer and the Company has a present right to payment. Sales and other taxes that are required to be remitted to regulatory authorities are recorded as liabilities and excluded from sales. Limited rights of return, for claims of damaged or non-compliant products, exist with the Company’s customers.

The Company has elected the practical expedient that allows it to recognize the incremental costs of obtaining a contract as an expense, when incurred, if the amortization period of the asset that the Company otherwise would have recognized is one year or less.

Revenues within the scope of ASC 606 do not include material amounts of variable consideration. Customer payments are generally due in advance of when control is transferred to the customer. The time between invoicing and when payment is due is not significant.

Contract liabilities consist of fees invoiced or paid by the Company’s customers for which the associated services have not been performed and revenues have not been recognized based on the Company’s revenue recognition criteria described above. Such amounts are reported as deferred revenue on the consolidated balance sheet. Deferred revenue that is expected to be recognized during the following twelve months is recorded as a current liability.

(h)

Cost of Sales

Cost of sales consist primarily of the purchase price of goods and cost of services rendered, freight costs, warehousing costs, and purchasing costs. Cost of sales also includes production and labor costs for the Company’s manufacturing business.

(i)

Shipping and Handling

The Company records freight billed to customers within Net sales. Shipping and handling costs associated with inbound freight and goods shipped to customers are recorded in cost of sales. Other shipping and handling costs, such as for quality assurance, are recorded in operating expenses.

(j)

Recent Accounting Pronouncements Not Yet Adopted

The Company has reviewed recent accounting pronouncements and concluded that they are either not applicable to the Company or that there was no material impact or no material impact is expected in the consolidated financial statements as a result of future adoption.

Customer Concentration

9 Months Ended

Mar. 31, 2022

Risks and Uncertainties [Abstract]

CUSTOMER CONCENTRATION

CUSTOMER CONCENTRATION

The Company had two customers during the three month period ended March 31, 2022, and three customers during the nine month period ended March 31, 2022, which individually generated 10% or more of the Company’s net sales. These customers accounted for 73% and 65% of the Company’s sales for the three and nine month period ended March 31, 2022, respectively. As of March 31, 2022, these customers represented 43% of the Company’s outstanding accounts receivable.

Inventories

9 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

INVENTORIES

INVENTORIES

Inventories consisted of the following:

	March 31, 2022		June 30, 2021
	$		$
Work in process		1,138,566		-
Finished goods		281,816		-
Inventories		1,420,382		-

During the three and nine months ended March 31, 2022, inventory expensed to cost of goods sold was $127,308 and $280,845 (2021 - $Nil and $Nil), respectively.

Property and Equipment, Net

9 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

Property and equipment consisted of the following:

	March 31, 2022			June 30, 2021
	$			$

Right of Use Asset (leases)		1,167,436			439,321
Equipment		212,877			66,888
Leasehold Improvements		40,409			42,986
Property and equipment		1,420,722			549,195
Less: accumulated depreciation		(417,876	)		(222,600	)
Property and equipment, net		1,002,846			326,595

Depreciation expense on property, equipment and leasehold improvements for the three and nine months ended March 31, 2022 was $7,908 and $18,371 (2021 - $3,633 and $16,546). Depreciation expense related to the Right-of-Use Asset for the three and nine months ended March 31, 2022 was $89,450 and $199,058 (2021 - $22,327 and $65,506) and was recorded in general and administrative expenses.

Intangible Assets, Ipr&D and Goodwill

9 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, IPR&D AND GOODWILL

INTANGIBLE ASSETS, IPR&D AND GOODWILL

Intangible assets consist of:

	March 31, 2022			June 30, 2021
	$			$
Intellectual property		1,736,420			1,736,420
Patents		1,191,000			-
Trademark		216,000			-
Intangible assets		3,143,420			1,736,420
Less: accumulated depreciation		(788,019	)		(674,723	)
Intangible assets, net		2,355,401			1,061,697

Acquired intellectual property is recorded at cost and is amortized on a straight-line basis over 18 years.

Acquired patents consist of patents related to the development of cannabinoid analogs. This intangible asset is being amortized over an estimated useful life of 18 years.

The acquired trademark represents the trade name ProDiol® and is being amortized over 10 years.

As at March 31, 2022, the definite-lived intangible assets had a weighted average estimated remaining useful life of approximately 13 years.

Amortization expense on intangible assets for the three and nine months ended March 31, 2022 was $45,430 and $113,296 (2021 - $23,788 and $75,672). The Company expects amortization expense to be incurred over the next five years as follows:

	$

2022		186,062
2023		186,062
2024		186,062
2025		186,062
2026		186,062
		930,310

Acquired in-process research and development (IPR&D) are related identifiable intangible assets associated with cannabinoid manufacturing processes and includes $1,249,000 (2021 – nil) of knowhow and trade secrets acquired in the BayMedica acquisition (see Note 7). Acquired IPR&D represent the fair value assigned to research and development assets that have not reached technological feasibility. IPR&D is classified as an indefinite-lived intangible asset and is not amortized. All research and development costs incurred subsequent to the acquisition of IPR&D are expensed as incurred.

Goodwill of $2,023,039 (2021 – nil) arose from the acquisition of BayMedica (see Note 7). The Company performs its annual goodwill impairment assessment on June 30, or more frequently if impairment indicators exist. In the event management determines that the value of goodwill has been impaired, the Company will incur an impairment charge during the period in which the determination is made. As of March 31, 2022, there were no indicators of impairment.

Acquisition

9 Months Ended

Mar. 31, 2022

Acquisition [Abstract]

ACQUISITION

ACQUISITION

On October 13, 2021, the Company completed the acquisition of BayMedica, a private company based in the U.S. that specializes in the manufacturing and commercialization of rare cannabinoids. The Company acquired 100% of BayMedica in exchange for i) 2,050,000 common shares issued to BayMedica’s equity and convertible debt holders, subject to a six-month contractual hold period and ii) $1 million to be held in escrow, subject to reduction for certain post-closing adjustments or satisfaction of indemnification claims under the definitive agreement (the “BayMedica Agreement”) in the six- and twelve-month periods following the closing.

Total consideration for the acquisition of BayMedica is summarized as follows:

	Purchase Price
	Consideration
	($)
Estimated fair value of common shares issued		3,013,500
Cash		1,000,000
Less: Post-closing adjustments		(199,543	)
Estimated fair value of consideration transferred		3,813,957

The 2,050,000 common shares were valued at $1.47, being the closing price of the Company’s common shares on Nasdaq on October 12, 2021. The cash component is subject to reduction for certain post-closing adjustments or satisfaction of indemnification claims and therefore is subject to further changes.

In accordance with the acquisition method of accounting, the purchase price of BayMedica has been allocated to the acquired assets and assumed liabilities based on their estimated acquisition date fair values. The fair value estimates were based on income, estimates and other analyses. The excess of the total consideration over the estimated fair value of the amounts initially assigned to the identifiable assets acquired and liabilities assumed has been recorded as goodwill, which is not deductible for income tax purposes. The goodwill balance represents the assembled workforce acquired, the combined company’s expectations of the strategic opportunities available as a result of the acquisition, and other synergies that will be derived from the acquisition.

The following table summarizes the preliminary fair value of assets acquired and liabilities assumed as of the acquisition date:

	Purchase Price
	Allocation
	($)
Assets acquired:
Cash and cash equivalents		91,566
Accounts receivable, net of allowance for doubtful accounts		36,100
Inventories		487,122
Prepaid expenses and deposits		131,674
Property and equipment		133,911
IPR&D		1,249,000
Patents		1,191,000
Trademark		216,000
Goodwill		2,023,039
Total assets acquired		5,559,412

Liabilities assumed:
Accounts payable and accrued liabilities		1,024,487
Other short-term liabilities		598,245
Long-term debt		122,723
Total liabilities acquired		1,745,455
Estimated fair value of net assets acquired		3,813,957

Tangible assets and liabilities were valued at their respective carrying amounts as management believes that these amounts approximated their acquisition-date fair values.

The Purchase Price allocation includes certain identifiable intangible assets with an estimated fair value of approximately $2,656,000. These intangible assets include trade secrets, product formulation knowledge, patents and trademarks. Patents and trademarks are expected to have a finite life and are being amortized using the straight-line method over the respective lives of each asset.

Acquired IPR&D are related identifiable intangible assets associated with cannabinoid manufacturing processes and includes knowhow and trade secrets. The multi-period excess earnings method was used to determine the fair value of these assets as at the date of acquisition. IPR&D is classified as an indefinite-lived intangible asset and is not amortized. All research and development costs incurred subsequent to the acquisition of IPR&D are expensed as incurred.

The acquired trademark represents the trade name ProDiol®. The fair value of the trademark, which was determined using the relief from royalty method, was capitalized as of the acquisition date and is subsequently being amortized over 10 years.

Acquired patents consist of patents related to the development of cannabinoid analogs, the fair value of which was determined using the income approach. This intangible asset is being amortized over an estimated useful life of 18 years.

As of March 31, 2022, the Company had not yet fully completed the analysis to assign fair values to all assets acquired and liabilities assumed, and therefore the purchase price allocation is preliminary. The remaining items include the finalization of working capital, income taxes and resulting impacts to goodwill. The preliminary purchase price allocation will be subject to further refinement as the Company continues to refine its estimates and assumptions based on information available at the acquisition date. The purchase price allocation adjustments can be made throughout the end of the Company’s measurement period, which is not to exceed one year from the acquisition date.

Following the acquisition date, the operating results of BayMedica have been included in the unaudited condensed consolidated financial statements. For the period from the October 13, 2021 acquisition date through March 31, 2022, sales attributable to BayMedica were $0.6 million and operating losses attributable to BayMedica were $1.8 million. Acquisition-related expenses, which were comprised primarily of regulatory, financial advisory and legal fees, totaled $0.2 million for the nine months ended March 31, 2022 and were included in general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss.

The following table presents the pro forma consolidated results of the Company assuming the BayMedica acquisition had been completed on July 1, 2020:

	Three Months Ended						Nine Months Ended
	March 31						March 31
	2022			2021			2022			2021
	$			$			$			$
Sales		309,585			437,309			574,677			1,023,379
Net loss		(3,390,440	)		(3,600,787	)		(10,468,072	)		(8,653,636	)

Accounts Payable and Accrued Liabilities

9 Months Ended

Mar. 31, 2022

Payables and Accruals [Abstract]

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities consist of the following:

	March 31, 2022		June 30, 2021
	$		$
Trade payables		1,676,179		775,129
Accrued research and development expenses		364,207		309,901
Employee compensation, benefits and related accruals		711,421		880,207
Accrued general and administrative expenses		115,120		169,641
Accounts payable and accrued liabilities		2,866,927		2,134,878

Share Capital and Reserves

9 Months Ended

Mar. 31, 2022

Share Capital And Reserves [Abstract]

SHARE CAPITAL AND RESERVES

SHARE CAPITAL AND RESERVES

Authorized

As at March 31, 2022, the Company’s authorized share structure consisted of: (i) an unlimited number of common shares without par value; and (ii) an unlimited number of preferred shares without par value. No preferred shares were issued and outstanding as at March 31, 2022 and June 30, 2021.

The Company may issue preferred shares and may, at the time of issuance, determine the rights, preference and limitations pertaining to these shares. Holders of preferred shares may be entitled to receive a preference payment in the event of any liquidation, dissolution or winding up of the Company before any payment is made to the holders of common shares.

Common Shares

During the nine months ended March 31, 2022, the Company completed the following private placement:

Transaction Description	Number		Issue Price		Total
Private placement - Shares		890,000	$	2.973	$	2,645,970
Private placement - Pre-funded warrants		3,146,327	$	2.9729		9,353,716
Gross Proceeds					$	11,999,686
Allocated to Additional Paid-in Capital						(10,540,635	)
					$	1,459,051
Share issuance costs					$	(247,336	)

On July 2, 2021, the Company closed a private placement of its common shares and issued an aggregate of 890,000 common shares and 3,146,327 pre-funded warrants, for gross proceeds of $11,999,686. The pre-funded warrants were determined to be common stock equivalents. Each common share and each pre-funded warrant was sold in the offering with a warrant to purchase a common share. Transaction costs were allocated proportionally between common shares and warrants with $247,336 allocated to common shares and the balance of $1,786,831 allocated to additional paid-in capital and recorded as a component of shareholders’ equity in the consolidated balance sheet. The 3,146,327 pre-funded warrants were fully exercised for 3,146,327 common shares during the nine months ended March 31, 2022 resulting in a $4,283,654 reclassification from additional paid-in capital to common shares.

During the nine months ended March 31, 2022, in accordance with the BayMedica Agreement, the Company issued 2,050,000 common shares to BayMedica’s historical equity and convertible debt holders (See Note 7).

Share Purchase Warrants

On November 16, 2020, 1,780,000 warrants were issued with an exercise price of $5.11 per share, were immediately exercisable upon issuance, and expire 6 years following the date of issuance.

On February 12, 2021, 693,000 warrants were issued with an exercise price of $4.85 per share, were exercisable 6 months following issuance, and expire 5.5 years following the date of issuance. On March 21, 2022, the Company amended the warrants to re-price them to $0.45 per share with an expiry date of March 31, 2023. Between March 21, 2022 and March 31, 2022, 369,600 of the warrants were exercised on a cashless basis resulting in the issuance of 146,814 common shares.

On July 2, 2021, 4,036,327 warrants were issued with an exercise price of $2.848 per share, were immediately exercisable upon issuance, and expire 5 years following the date of issuance. The pre-funded and common warrants did not meet the criteria to be classified as a liability award and therefore were treated as an equity award and recorded as a component of shareholders’ equity in the consolidated balance sheet.

The following is a summary of changes in share purchase warrants from July 1, 2021 to March 31, 2022:

	Number			Weighted Average Share Price		Aggregate Intrinsic Value
Balance as at June 30, 2021		2,473,000		$	3.80		-
Granted		4,036,327		$	2.848		-
Exercised		(369,600	)	$	0.45		114,716
Balance as at March 31, 2022		6,139,727		$	3.38		-

The total intrinsic value of warrants exercised during the quarter ended March 31, 2022 was $114,716 (2021 - $Nil).

Agents’ Warrants

On July 2, 2021, 302,725 warrants were issued for services with an exercise price of $3.7163 per share, were immediately exercisable upon issuance, and expire 5 years following the date of issuance. The agents’ warrants did not meet the criteria to be classified as a liability award and therefore were treated as an equity award and recorded as a component of shareholders’ equity in the consolidated balance sheet.

The following is a summary of changes in agents’ warrants from July 1, 2021 to March 31, 2022:

	Number		Weighted Average Share Price		Aggregate Intrinsic Value
Balance as at June 30, 2021		-		-		-
Granted		302,725	$	3.7163		-
Balance as at March 31, 2022		302,725	$	3.7163		-

Share-Based Payments

9 Months Ended

Mar. 31, 2022

Share-Based Payment Arrangement [Abstract]

SHARE-BASED PAYMENTS

10.

SHARE-BASED PAYMENTS

Option Plan Details

On March 24, 2017, and as amended on November 20, 2020, the Company’s shareholders approved: (i) the adoption of a new stock option plan (the “Plan”) pursuant to which the Board of Directors may, from time to time, in its discretion and in accordance with regulatory requirements, grant to directors, officers, employees and consultants of the Company, non-transferable options to purchase common shares, provided that the number of common shares reserved for issuance will not exceed twenty percent (20%) of the issued and outstanding common shares at the date the options are granted (on a non-diluted and rolling basis); and (ii) the application of the new stock option plan to all outstanding stock options of the Company that were granted prior to March 24, 2017 under the terms of the Company’s previous stock option plan.

As at March 31, 2022, there were 420,165 (June 30, 2021 – 493,387) options available for future allocation pursuant to the terms of the Plan. The option price under each option shall be not be less than the closing price on the day prior to the date of grant. All options vest upon terms as set by the Board of Directors, either over time, typically 12 to 36 months, or upon the achievement of certain corporate milestones.

Stock options granted prior to May 2021 were granted with Canadian dollar exercise prices (United States dollar amounts for weighted average exercise prices and aggregate intrinsic value are calculated using prevailing rates as at March 31, 2022). Commencing in May 2021, stock options are granted with United States dollar exercise prices.

The following is a summary of changes in outstanding options from July 1, 2021 to March 31, 2022:

	Number			Weighted Average Exercise Price $

Balance as at June 30, 2021		912,006			8.61
Granted		765,000			1.38
Expired/Forfeited		(267,463	)		4.24
Balance as at March 31, 2022		1,409,543			5.40

March 31, 2022:
Vested and exercisable		479,249			12.57
Unvested		930,294			1.71

Fair Value of Options Issued During the Period

Weighted Average Fair Value at Grant Date of Options Granted:

The weighted average fair value at grant date of options granted during the nine months ended March 31, 2022, was $1.38 per option (year ended June 30, 2021 - $1.96). Assumptions used for options granted during the nine months ended March 31, 2022 included a weighted average risk-free interest rate of 1.14% (year ended June 30, 2021 – 0.27%), weighted average expected life of 3.1 years calculated using the Simplified Method for directors, officers and employees and the contractual life for consultants, weighted average volatility factor of 97.26% (year ended June 30, 2021 – 105.88%), weighted average dividend yield of 0% (year ended June 30, 2021 – 0%) and a 5% forfeiture rate (year ended June 30, 2021 – 5%).

ii)

Expenses Arising from Share-based Payment Transactions:

Total expenses arising from share-based payment transactions recognized during the three months ended March 31, 2022, were $195,085 (2021 - $207,302). $103,401 was allocated to general and administrative expenses (2021 - $138,880) and the remaining $91,684 was allocated to research and development expenses (2021 - $68,422). Total expenses arising from share-based payment transactions recognized during the nine months ended March 31, 2022, were $521,006 (2021 - $389,343). $307,885 was allocated to general and administrative expenses (2021 - $248,836) and the remaining $213,121 was allocated to research and development expenses (2021 - $140,507). Unrecognized compensation cost at March 31, 2022 related to unvested options was $431,558 which will be recognized over a weighted-average vesting period of 1.2 years.

Lease Obligations

9 Months Ended

Mar. 31, 2022

Leases [Abstract]

LEASE OBLIGATIONS

11.

LEASE OBLIGATIONS

On commencement of a lease on July 1, 2019, the Company recognized right-of-use assets of $434,660 and a lease liability of $385,057 with no net impact on accumulated deficit.

In conjunction with the acquisition of BayMedica (Note 7), the Company acquired an operating lease for a corporate office with a remaining term of 2.1 years as at March 31, 2022. On the date of acquisition of BayMedica, the Company recognized right-of-use assets of $728,115 and a lease liability of $825,427, utilizing the remaining term on acquisition and a 4.0% discount rate.

The Company is committed to minimum lease payments as follows:

Maturity Analysis	March 31, 2022
Less than one year	$	431,680
One to five years		845,291
More than five years		-
Total undiscounted lease liabilities	$	1,276,971	⁽¹⁾

⁽¹⁾ Excludes estimated variable operating costs of $92,677 and $62,824 on an annual basis through to April 30, 2024 and August 31, 2024, respectively.

Basic and Diluted Loss per Share

9 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

BASIC AND DILUTED LOSS PER SHARE

12.

BASIC AND DILUTED LOSS PER SHARE

Basic loss per share amounts are calculated by dividing the net loss for the period by the weighted average number of ordinary shares outstanding during the period. The pre-funded warrants were determined to be common stock equivalents and have been included in the weighted average number of shares outstanding for calculation of the basic earnings per share number. As the outstanding stock options and warrants are anti-dilutive, they are excluded from the weighted average number of common shares in the table below.

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2022			2021			2022			2021
	$			$			$			$
Net loss for the period		(3,475,665	)		(3,101,475	)		(10,730,094	)		(6,944,336	)
Basic and diluted loss per share		(0.25	)		(0.41	)		(0.81	)		(1.11	)
Weighted average number of common shares - basic and diluted		14,151,544			7,549,040			13,326,754			6,277,824

Segment Information

9 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

13.

SEGMENT INFORMATION

As of the closing of the BayMedica acquisition, the Company aligned into two operating and reportable segments, InMed Pharmaceuticals (the “InMed” segment) and BayMedica (the “BayMedica” segment). The Company reports segment information based on the management approach which designates the internal reporting used by the Chief Operating Decision Maker (“CODM”), which is the Company’s Chief Executive Officer, for making decisions and assessing performance as the source of the Company’s reportable segments. The CODM allocates resources and assesses the performance of each operating segment based on potential licensing opportunities, historical and potential future product sales, operating expenses, and operating income (loss) before interest and taxes. The Company has determined its reportable segments to be InMed and BayMedica based on the information used by the CODM. Other than cash, cash equivalents and short-term investments (“Unrestricted cash”) balances, the CODM does not regularly review asset information by reportable segment and therefore, the Company does not report asset information by reportable segment.

The InMed segment is largely organized around the research and development of cannabinoid-based pharmaceuticals products and the BayMedica segment is largely organized around developing proprietary manufacturing technologies to produce rare cannabinoids for sale in the health and wellness industry.

The following table presents information about the Company’s reportable segments for the three and nine months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022									2021
	InMed			BayMedica			Total			InMed			BayMedica		Total
				$			$			$			$		$
Sales		-			309,585			309,585			-			-		-
Operating expenses		2,940,961			844,289			3,785,250			3,101,475			-		3,101,475
Net loss		(2,940,961	)		(534,704	)		(3,475,665	)		(3,101,475	)		-		(3,101,475	)
Unrestricted cash		5,386,206			512,107			5,898,313			9,454,113			-		9,454,113

	Nine Months Ended March 31,
	2022									2021
	InMed			BayMedica			Total			InMed			BayMedica		Total
				$			$			$			$		$
Sales		-			574,677			574,677			-			-		-
Operating expenses		9,477,441			1,827,330			11,304,771			6,944,336			-		6,944,336
Net loss		(9,477,441	)		(1,252,653	)		(10,730,094	)		(6,944,336	)		-		(6,944,336	)
Unrestricted cash		5,386,206			512,107			5,898,313			9,454,113			-		9,454,113

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 21
-Subparagraph (a)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Non-Cash Transactions

9 Months Ended

Mar. 31, 2022

Non Cash Transactions [Abstract]

NON-CASH TRANSACTIONS

14.

NON-CASH TRANSACTIONS

Investing and financing activities that do not have a direct impact on cash flows are excluded from the statements of cash flows. During the nine months ended March 31, 2022, the following transactions were excluded from the statement of cash flows:

On July 2, 2021, the Company issued warrants to its placement agent. The fair value of these warrants was $739,920 and was included in share issuance costs related to the July 2021 private placement.

ii)

On October 13, 2021, the Company issued 2,050,000 common shares to BayMedica’s equity and convertible debt holders, pursuant to the BayMedica Agreement. The estimated fair value of these common shares was $3,013,500 and was included in the total consideration for the acquisition of BayMedica (see Note 7).

iii)

369,600 warrants were exercised on a cashless basis resulting in the issuance of 146,814 common shares.

During the nine months ended March 31, 2021, the following transaction was excluded from the statement of cash flows:

As at March 31, 2021, the Company has unpaid financing costs of $138,927.

Commitments and Contingencies

9 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

15.

COMMITMENTS AND CONTINGENCIES

Pursuant to the terms of agreements with various contract research organizations, as at March 31, 2022, the Company is committed for contract research services and materials at a cost of approximately $3,319,699. A total of $3,209,699 of these expenditures are expected to occur in the twelve months following March 31, 2022 and the balance of $110,000 in the following twelve month period.

Pursuant to the terms of a May 31, 2017 Technology Assignment Agreement between the Company and the University of British Columbia (“UBC”), the Company is committed to pay royalties to UBC on certain licensing and royalty revenues received by the Company for biosynthesis of certain drug products that are covered by the agreement. To date, no payments have been required to be made.

Pursuant to the terms of a December 13, 2018 Collaborative Research Agreement with UBC in which the Company owns all rights, title and interests in and to any intellectual property, in addition to funding research at UBC, the Company is committed to make a one-time payment upon filing of any PCT patent application arising from the research. To date, one such payment has been made to UBC.

Pursuant to the terms of a November 1, 2018 Contribution Agreement with National Research Council Canada, as represented by its Industrial Research Assistance Program (NRC-IRAP), under certain circumstances contributions received, including the disposition of the underlying intellectual property developed in part with NRC-IRAP contributions, may become repayable.

Short-term investments include guaranteed investment certificates with a face value of $46,017 (June 30, 2021 - $46,391) that are pledged as security for a corporate credit card.

The Company has entered into certain agreements in the ordinary course of operations that may include indemnification provisions, which are common in such agreements. In some cases, the maximum amount of potential future indemnification is unlimited; however, the Company currently holds commercial general liability insurance. This insurance limits the Company’s liability and may enable the Company to recover a portion of any future amounts paid. Historically, the Company has not made any indemnification payments under such agreements and it believes that the fair value of these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations for any period presented.

Pursuant to a technology licensing agreement, the Company is committed to issue, subject to regulatory approval, up to 17,500 warrants to purchase 17,500 common shares upon the achievement of certain milestones. The exercise price of the warrants will be equal to the five-day VWAP of the common shares prior to each milestone achievement and the warrants will be exercisable for a period of three years for issuance date.

The Company entered into a patent license agreement with a third party (the “Licensor”) in an agreement dated February 15, 2021. The Company is required to make future royalty payments to Licensor based on net sales of licensed products, with minimum payments required starting in 2021. In December 2021, the Company amended the License Agreement including the deferral of the 2021 minimum payments to 2022. As at March 31, 2022, the Company has accrued $300,000 for the minimum payments under the agreement.

From time to time, the Company may be subject to various legal proceedings and claims related to matters arising in the ordinary course of business. The Company does not believe it is currently subject to any material matters where there is at least a reasonable possibility that a material loss may be incurred.

Financial Risk Management

9 Months Ended

Mar. 31, 2022

Financial Risk Management [Abstract]

FINANCIAL RISK MANAGEMENT

16.

FINANCIAL RISK MANAGEMENT

The Company’s financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable and accounts payable and accrued liabilities.

The fair values of short-term investments, accounts receivable, and accounts payable and accrued liabilities approximate their carrying values because of the short-term nature of these instruments. Cash and cash equivalents are measured at fair value using Level 1 inputs.

Market Risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices are comprised of four types of risk: foreign currency risk, interest rate risk, commodity price risk and equity price risk. The Company does not currently have significant commodity price risk or equity price risk.

Foreign Currency Risk:

Foreign currency risk is the risk that the future cash flows or fair value of the Company’s financial instruments that are denominated in a currency that is not the Company’s functional currency (U.S. dollar) will fluctuate due to changes in foreign exchange rates. Portions of the Company’s cash and cash equivalents and accounts payable and accrued liabilities are denominated in Canadian dollars.

Accordingly, the Company is exposed to fluctuations in exchange rates, primarily against the Canadian dollar.

As at March 31, 2022, the Company has a net excess of Canadian dollar denominated cash and cash equivalents in excess of Canadian dollar denominated accounts payable and accrued liabilities of C$1,572,337 which is equivalent to US$1,258,342 at the March 31, 2022 exchange rate. The Canadian dollar financial assets generally result from holding Canadian dollar cash to settle anticipated near-term accounts payable and accrued liabilities denominated in Canadian dollars. The Canadian dollar financial liabilities generally result from purchases of supplies and services from suppliers in Canada.

Each change of 1% in the Canadian dollar in relation to the U.S. dollar results in a gain or loss, with a corresponding effect on cash flows, of $12,583 based on the March 31, 2022 net Canadian dollar assets (liabilities) position. During the nine months ended March 31, 2022, the Company recorded foreign exchange loss of $35,228 (2021 – $30,385) related to Canadian dollars.

Interest Rate Risk:

Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. As at March 31, 2022, holdings of cash and cash equivalents of $4,483,590 (June 30, 2021 - $7,053,329) are subject to floating interest rates. The balance of the Company’s cash holdings of $1,414,723 (June 30, 2021 - $309,796) are non-interest bearing.

As at March 31, 2022, the Company held variable rate guaranteed investment certificates, with one-year terms, of $46,098 (June 30, 2021 - $46,462).

The Company’s current policy is to invest excess cash in guaranteed investment certificates or interest-bearing accounts of major Canadian chartered banks or credit unions with comparable credit ratings. The Company regularly monitors compliance to its cash management policy.

Credit Risk:

Credit risk is the risk of financial loss to the Company if a customer or a counter party to a financial instrument fails to meet its contractual obligations. Financial instruments which are potentially subject to credit risk for the Company consist primarily of cash and cash equivalents, short-term investments and loan receivable. Cash and cash equivalents and short-term investments are maintained with financial institutions of reputable credit and may be redeemed upon demand. In the normal course of business, the Company does not provide third party loans.

The carrying amount of financial assets represents the maximum credit exposure. Credit risk exposure is limited through maintaining cash and cash equivalents and short-term investments with high-credit quality financial institutions and management considers this risk to be minimal for all cash and cash equivalents and short-term investments assets based on changes that are reasonably possible at each reporting date.

Liquidity Risk:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s policy is to ensure that it has sufficient cash to meet its liabilities when they become due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. A key risk in managing liquidity is the degree of uncertainty in the cash flow projections. If future cash flows are fairly uncertain, the liquidity risk increases. As at March 31, 2022, the Company has cash and cash equivalents and short-term investments of $5,944,411 (June 30, 2021 - $7,409,588), current liabilities of $4,105,502 (June 30, 2021 - $2,215,361) and a working capital surplus of $4,641,384 (June 30, 2021 - $6,162,908).

Related Party Transactions

9 Months Ended

Mar. 31, 2022

RELATED PARTY TRANSACTIONS

17.

RELATED PARTY TRANSACTIONS

On February 11, 2022, the Board of Directors appointed Janet Grove as a director of the Company. There were no arrangements nor understandings with Ms. Grove pursuant to which she was selected as a director of the Company, and there were no family relationship between Ms. Grove and any of the Company’s other directors or executive officers. Ms. Grove is a Partner of Norton Rose Fulbright Canada LLP (“NRF”). From February 11, 2022 to March 31, 2022, NRF rendered legal services in the amount of $27,770 (2021 - $Nil) to the Company. These transactions were in the normal course of operations and were measured at the exchange amount which represented the amount of consideration established and agreed to by NRF.

Subsequent Events

9 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

18.

SUBSEQUENT EVENTS

On April 21, 2022, 20,556 of the February 2021 warrants were exercised on a cashless basis resulting in the issuance of 10,556 common shares.

On April 13, 2022, in accordance with the BayMedica Agreement, $300,457 of escrow payments were made to BayMedica’s historical equity and convertible debt holders reflecting $199,543 of post-closing reductions from the escrow. The remaining $500,000 escrow payment, subject to any additional post-closing adjustments, is payable on the twelve-month anniversary following the closing.

On April 7, 2022, the Company filed a prospectus supplement to its S-3 universal shelf filing to incorporate an At The Market Offering Agreement following which the Company sold 268,985 common shares under the agreement with net proceeds of $0.3 million.

Accounting Policies, by Policy (Policies)

9 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation

(a)

Basis of Presentation

Use of Estimates

(b)

Use of Estimates

COVID-19 Impacts

(c)

COVID-19 Impacts

Business Combinations

(d)

Business Combinations

Accounts Receivable

(e)

Accounts Receivable

Inventories

(f)

Inventories

In determining any valuation allowances, the Company reviews inventory for obsolete, redundant, and slow-moving goods. At March 31, 2022, no amounts had been charged to the valuation allowance.

Revenue Recognition

(g)

Revenue Recognition

Cost of Sales

(h)

Cost of Sales

Shipping and Handling

(i)

Shipping and Handling

Recent Accounting Pronouncements Not Yet Adopted

(j)

Recent Accounting Pronouncements Not Yet Adopted

Inventories (Tables)

9 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Schedule of inventories

	March 31, 2022		June 30, 2021
	$		$
Work in process		1,138,566		-
Finished goods		281,816		-
Inventories		1,420,382		-

Property and Equipment, Net (Tables)

9 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	March 31, 2022			June 30, 2021
	$			$

Right of Use Asset (leases)		1,167,436			439,321
Equipment		212,877			66,888
Leasehold Improvements		40,409			42,986
Property and equipment		1,420,722			549,195
Less: accumulated depreciation		(417,876	)		(222,600	)
Property and equipment, net		1,002,846			326,595

Intangible Assets, Ipr&D and Goodwill (Tables)

9 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

	March 31, 2022			June 30, 2021
	$			$
Intellectual property		1,736,420			1,736,420
Patents		1,191,000			-
Trademark		216,000			-
Intangible assets		3,143,420			1,736,420
Less: accumulated depreciation		(788,019	)		(674,723	)
Intangible assets, net		2,355,401			1,061,697

Schedule of amortization expense

	$

2022		186,062
2023		186,062
2024		186,062
2025		186,062
2026		186,062
		930,310

Acquisition (Tables)

9 Months Ended

Mar. 31, 2022

Acquisition [Abstract]

Schedule of total consideration

	Purchase Price
	Consideration
	($)
Estimated fair value of common shares issued		3,013,500
Cash		1,000,000
Less: Post-closing adjustments		(199,543	)
Estimated fair value of consideration transferred		3,813,957

Schedule of fair value of assets acquired and liabilities

	Purchase Price
	Allocation
	($)
Assets acquired:
Cash and cash equivalents		91,566
Accounts receivable, net of allowance for doubtful accounts		36,100
Inventories		487,122
Prepaid expenses and deposits		131,674
Property and equipment		133,911
IPR&D		1,249,000
Patents		1,191,000
Trademark		216,000
Goodwill		2,023,039
Total assets acquired		5,559,412

Liabilities assumed:
Accounts payable and accrued liabilities		1,024,487
Other short-term liabilities		598,245
Long-term debt		122,723
Total liabilities acquired		1,745,455
Estimated fair value of net assets acquired		3,813,957

Schedule of pro forma consolidated results

	Three Months Ended						Nine Months Ended
	March 31						March 31
	2022			2021			2022			2021
	$			$			$			$
Sales		309,585			437,309			574,677			1,023,379
Net loss		(3,390,440	)		(3,600,787	)		(10,468,072	)		(8,653,636	)

Accounts Payable and Accrued Liabilities (Tables)

9 Months Ended

Mar. 31, 2022

Payables and Accruals [Abstract]

Schedule of accounts payable and accrued liabilities

	March 31, 2022		June 30, 2021
	$		$
Trade payables		1,676,179		775,129
Accrued research and development expenses		364,207		309,901
Employee compensation, benefits and related accruals		711,421		880,207
Accrued general and administrative expenses		115,120		169,641
Accounts payable and accrued liabilities		2,866,927		2,134,878

Share Capital and Reserves (Tables)

9 Months Ended

Mar. 31, 2022

Share Capital And Reserves [Abstract]

Schedule of common shares

Transaction Description	Number		Issue Price		Total
Private placement - Shares		890,000	$	2.973	$	2,645,970
Private placement - Pre-funded warrants		3,146,327	$	2.9729		9,353,716
Gross Proceeds					$	11,999,686
Allocated to Additional Paid-in Capital						(10,540,635	)
					$	1,459,051
Share issuance costs					$	(247,336	)

Schedule of changes in share purchase warrants

	Number			Weighted Average Share Price		Aggregate Intrinsic Value
Balance as at June 30, 2021		2,473,000		$	3.80		-
Granted		4,036,327		$	2.848		-
Exercised		(369,600	)	$	0.45		114,716
Balance as at March 31, 2022		6,139,727		$	3.38		-

Schedule of changes in agents warrants

	Number		Weighted Average Share Price		Aggregate Intrinsic Value
Balance as at June 30, 2021		-		-		-
Granted		302,725	$	3.7163		-
Balance as at March 31, 2022		302,725	$	3.7163		-

Share-Based Payments (Tables)

9 Months Ended

Mar. 31, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of options activity

	Number			Weighted Average Exercise Price $

Balance as at June 30, 2021		912,006			8.61
Granted		765,000			1.38
Expired/Forfeited		(267,463	)		4.24
Balance as at March 31, 2022		1,409,543			5.40

March 31, 2022:
Vested and exercisable		479,249			12.57
Unvested		930,294			1.71

Lease Obligations (Tables)

9 Months Ended

Mar. 31, 2022

Leases [Abstract]

Schedule of minimum lease payments

Maturity Analysis	March 31, 2022
Less than one year	$	431,680
One to five years		845,291
More than five years		-
Total undiscounted lease liabilities	$	1,276,971	⁽¹⁾

⁽¹⁾ Excludes estimated variable operating costs of $92,677 and $62,824 on an annual basis through to April 30, 2024 and August 31, 2024, respectively.

Basic and Diluted Loss per Share (Tables)

9 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Schedule of weighted average number of common shares

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2022			2021			2022			2021
	$			$			$			$
Net loss for the period		(3,475,665	)		(3,101,475	)		(10,730,094	)		(6,944,336	)
Basic and diluted loss per share		(0.25	)		(0.41	)		(0.81	)		(1.11	)
Weighted average number of common shares - basic and diluted		14,151,544			7,549,040			13,326,754			6,277,824

Segment Information (Tables)

9 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

	Three Months Ended March 31,
	2022									2021
	InMed			BayMedica			Total			InMed			BayMedica		Total
				$			$			$			$		$
Sales		-			309,585			309,585			-			-		-
Operating expenses		2,940,961			844,289			3,785,250			3,101,475			-		3,101,475
Net loss		(2,940,961	)		(534,704	)		(3,475,665	)		(3,101,475	)		-		(3,101,475	)
Unrestricted cash		5,386,206			512,107			5,898,313			9,454,113			-		9,454,113

	Nine Months Ended March 31,
	2022									2021
	InMed			BayMedica			Total			InMed			BayMedica		Total
				$			$			$			$		$
Sales		-			574,677			574,677			-			-		-
Operating expenses		9,477,441			1,827,330			11,304,771			6,944,336			-		6,944,336
Net loss		(9,477,441	)		(1,252,653	)		(10,730,094	)		(6,944,336	)		-		(6,944,336	)
Unrestricted cash		5,386,206			512,107			5,898,313			9,454,113			-		9,454,113

Corporate Information and Continuing Operations (Details) - USD ($) $ in Millions	9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Jun. 30, 2021
Accounting Policies [Abstract]
Net losses	$ 10.7	$ 6.9
Accumulated deficit	85.6		$ 74.9
Cash and cash equivalents	$ 5.9

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

Customer Concentration (Details)	3 Months Ended	9 Months Ended
Customer Concentration (Details)	Mar. 31, 2022	Mar. 31, 2022
Customer Concentration (Details) [Line Items]
Net sales description		The Company had two customers during the three month period ended March 31, 2022, and three customers during the nine month period ended March 31, 2022, which individually generated 10% or more of the Company’s net sales.
Customer One [Member] \| Sales [Member]
Customer Concentration (Details) [Line Items]
Concentration percentage	73.00%
Customer One [Member] \| Accounts Receivable [Member]
Customer Concentration (Details) [Line Items]
Concentration percentage		43.00%
Customer Two [Member] \| Sales [Member]
Customer Concentration (Details) [Line Items]
Concentration percentage		65.00%

Inventories (Details) - USD ($)	3 Months Ended		9 Months Ended
Inventories (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Inventory Disclosure [Abstract]
Inventory expensed	$ 127,308		$ 280,845

Inventories (Details) - Schedule of inventories - USD ($)	Mar. 31, 2022	Jun. 30, 2021
Schedule of inventories [Abstract]
Work in process	$ 1,138,566
Finished goods	281,816
Inventories	$ 1,420,382

Property and Equipment, Net (Details) - USD ($)	3 Months Ended		9 Months Ended
Property and Equipment, Net (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation expense on property equipment	$ 7,908	$ 3,633	$ 18,371	$ 16,546
Depreciation expense related to right of use asset	$ 89,450	$ 22,327	$ 199,058	$ 65,506

Property and Equipment, Net (Details) - Schedule of property and equipment - USD ($)	Mar. 31, 2022	Jun. 30, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,420,722	$ 549,195
Less: accumulated depreciation	(417,876)	(222,600)
Property and equipment, net	1,002,846	326,595
Right of Use Asset (leases) [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,167,436	439,321
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	212,877	66,888
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 40,409	$ 42,986

Intangible Assets, Ipr&D and Goodwill (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Intangible Assets, Ipr&D and Goodwill (Details) [Line Items]
Weighted average estimated remaining useful life			13 years
Amortization expense on intangible assets	$ 45,430	$ 23,788	$ 113,296	$ 75,672
Acquired in-process research and development expense			1,249,000
Goodwill			$ 2,023,039
Intellectual property [Member]
Intangible Assets, Ipr&D and Goodwill (Details) [Line Items]
Estimated useful life			18 years
Patents [Member]
Intangible Assets, Ipr&D and Goodwill (Details) [Line Items]
Estimated useful life			18 years
Trademark [Member]
Intangible Assets, Ipr&D and Goodwill (Details) [Line Items]
Estimated useful life			10 years

Intangible Assets, Ipr&D and Goodwill (Details) - Schedule of intangible assets - USD ($)	Mar. 31, 2022	Jun. 30, 2021
Schedule of intangible assets [Abstract]
Intellectual property	$ 1,736,420	$ 1,736,420
Patents	1,191,000
Trademark	216,000
Intangible assets	3,143,420	1,736,420
Less: accumulated depreciation	(788,019)	(674,723)
Intangible assets, net	$ 2,355,401	$ 1,061,697

Intangible Assets, Ipr&D and Goodwill (Details) - Schedule of amortization expense	Mar. 31, 2022 USD ($)
Schedule of amortization expense [Abstract]
2022	$ 186,062
2023	186,062
2024	186,062
2025	186,062
2026	186,062
Total	$ 930,310

Acquisition (Details) - USD ($)			3 Months Ended		6 Months Ended	9 Months Ended
Acquisition (Details) - USD ($)	Oct. 13, 2021	Oct. 12, 2021	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2022	Mar. 31, 2021
Acquisition (Details) [Line Items]
Acquisition of common shares (in Shares)		2,050,000
Intangible assets estimated fair value			$ 2,656,000		$ 2,656,000	$ 2,656,000
Revenues			309,585			574,677
Operating losses			$ (3,475,665)	$ (3,101,475)		(10,730,094)	$ (6,944,336)
Legal fees						$ 200,000
ProDiol [Member]
Acquisition (Details) [Line Items]
Estimated useful life						10 years
Cannabinoid [Member]
Acquisition (Details) [Line Items]
Estimated useful life						18 years
BayMedica [Member]
Acquisition (Details) [Line Items]
Revenues					600,000
Operating losses					$ 1,800,000
Acquisition [Member]
Acquisition (Det