INM

InMed is a clinical-stage pharma whose entire pharmaceutical value rests on three early-stage programs — INM-901 (Alzheimer's), INM-089 (dry AMD) and INM-755 (EB) — that management's own Risk Factors describe as having 'a statistically high probability of failure' and facing 'lengthy, time-consuming and inherently unpredictable regulatory processes.' The $4.94M of revenue (+7.5% YoY) comes not from drugs but from the BayMedica bulk-cannabinoid B2B business, which carries a thin 34.5% gross margin and covers only a fraction of the cash burn. The company posted a -$8.16M net loss on a -165% net margin, and has lost money every year shown, accumulating a -$117M deficit. This is a research budget with a small ingredients business attached, not a going concern in the ordinary sense — and the filing says exactly that, disclosing 'substantial doubt regarding our ability to continue as a going concern.'

The balance sheet looks superficially clean — $11.1M cash, only $2.15M liabilities, 0.16x liabilities/equity — but operating cash flow of -$7.77M implies roughly 1.4 years of runway before another raise is forced. The history of that financing is the tell: a 20-for-1 reverse split in November 2024, an 82% collapse in share count, and a June 2025 private placement at $2.561/share. The stock now trades at $1.56, already ~40% below that offering price, meaning even the most recent institutional buyer is underwater. Additional capital, the filing warns, 'may cause dilution to our existing shareholders' — for a company with just 2.38M shares and negative cash flow, further dilution is not a risk but a near-certainty.