Bright Minds Biosciences (DRUG) - 2024 Q4 - Annual Report

Regulatory and Compliance - DMG Blockchain Solutions Inc. was issued a failure-to-file cease trade order on February 1, 2019, which was revoked on August 28, 2019[42]. - The Company has adopted a policy prohibiting directors, officers, and employees from hedging or monetizing transactions to lock in the value of holdings in securities[79]. Executive Compensation - The Compensation Committee reviews executive compensation annually, considering factors such as performance, industry standards, and available cash resources[51]. - The Company does not offer any benefits or perquisites to its Named Executive Officers other than potential grants of incentive stock options and RSUs[78]. - The compensation program aims to attract and retain qualified executives while aligning their interests with those of the Company's shareholders[54]. - The Company has not retained a compensation consultant during the financial years ending September 30, 2024, 2023, or 2022[77]. - The Board has concluded that the compensation policies do not create risks likely to have a material adverse effect on the Company[52]. - The Company does not have a pension plan providing payments or benefits to Named Executive Officers upon retirement[81]. - The Summary Compensation Table outlines all compensation provided to executive officers for their services[82]. - Total compensation for Ian McDonald, President and CEO, in 2024 was C$213,239, a decrease from C$626,178 in 2023[83]. - Ryan Cheung, CFO, received a total compensation of C$120,000 for both 2024 and 2023, unchanged from 2023[83]. - Jan Pedersen, Chief Science Officer, earned C$448,583 in 2024, down from C$799,724 in 2023[83]. - Mark Smith, Chief Medical Officer, received C$407,924 in 2024, compared to C$450,921 in 2023[83]. Equity Compensation - The equity compensation plans include 340,400 options and 192,000 RSUs, with a weighted-average exercise price of$7.76[90]. - There are 112,008 options and 260,408 RSUs remaining available for future issuance under the equity compensation plans[90]. - The company adopted a 10% rolling stock option plan, effective July 1, 2020, which allows for the issuance of options up to 10% of the total issued and outstanding common shares[113]. - The maximum number of options granted to any one holder within a 12-month period is limited to 5% of the issued and outstanding common shares[119]. Financial Position - The company has a total of 4,524,087 common shares outstanding as of the end of the reporting period[98]. - As of September 30, 2024, the company had cash and cash equivalents of C$5,720,092, which is held with major banks in Canada, the United States, and Australia[368]. - The company completed a private placement raising C$35,000,000, distributing 1,612,902 common shares at a price of C$21.70 per share[371]. - The company has current liabilities of C$449,299, indicating a strong liquidity position with cash reserves significantly exceeding liabilities[371]. - The company has no off-balance sheet arrangements or transactions that may materially affect its financial conditions[122]. Operational Risks - The company has limited experience in completing clinical trials, having only completed one phase one drug trial to date[137]. - The company operates solely through consultants and independent contractors, with its subsidiary having one employee as of December 30, 2024[157]. - The company faces risks related to foreign exchange fluctuations, particularly with US and Australian dollar balances[370]. - The company has a concentration of credit risk due to cash deposits being held with three banks[368]. - The company may not achieve the timelines for project development set out in its annual report, indicating potential delays in product development[139]. - The company’s management of capital did not change during the year ended September 30, 2024, focusing on maintaining adequate capital resources[372].