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Bright Minds Biosciences (DRUG) - 2025 Q1 - Quarterly Report
DRUGBright Minds Biosciences (DRUG)2025-02-13 23:58

Financial Performance - The company achieved a net income of CAD 49,610 for the three months ended December 31, 2024, compared to a net loss of CAD 1,684,267 for the same period in 2023[5] - Basic earnings per share improved to CAD 0.01 for the quarter ended December 31, 2024, compared to a loss of CAD 0.44 per share in the same quarter of 2023[5] - The company reported a working capital of CAD 57,760,114 as of December 31, 2024, compared to CAD 5,458,261 on September 30, 2024, reflecting improved financial health[12] - The total shareholders' equity increased to CAD 57,827,039 as of December 31, 2024, compared to CAD 5,536,343 as of September 30, 2024[2] Assets and Liquidity - As of December 31, 2024, Bright Minds Biosciences Inc. reported total assets of CAD 58,398,629, a significant increase from CAD 6,104,602 as of September 30, 2024[2] - Cash and cash equivalents rose to CAD 57,896,665 as of December 31, 2024, up from CAD 5,720,092 at the end of September 2024, indicating strong liquidity[9] - The company has a liquidity position with cash and cash equivalents covering current liabilities of 461,522,indicatingastrongliquiditybuffer[71]ExpensesandCostManagement−ResearchanddevelopmentexpensesforthequarterwereCAD1,045,368,downfromCAD1,225,524inthesamequarterof2023[5]−Totalshare−basedcompensationexpenseforthethreemonthsendedDecember31,2024,was461,522, indicating a strong liquidity buffer[71] Expenses and Cost Management - Research and development expenses for the quarter were CAD 1,045,368, down from CAD 1,225,524 in the same quarter of 2023[5] - Total share-based compensation expense for the three months ended December 31, 2024, was 176,391, a decrease of 19.4% from 218,949inthesameperiodof2023[48]−Thecompanyincurredlaboratorycostsof218,949 in the same period of 2023[48] - The company incurred laboratory costs of 2,680 and novel drug development expenses of 277,342forthethreemonthsendedDecember31,2024[73]CapitalRaisingandFinancing−ThecompanyraisedCAD48,628,964throughprivateplacementsduringthequarter,significantlyboostingitscapital[9]−Thecompanyplanstofinancefutureoperationsthroughequityfinancingsandloansfromdirectors,indicatingastrategyforsustainablegrowth[12]−Thecompanyclosedanon−brokeredprivateplacementonNovember4,2024,issuing1,612,902commonsharesforgrossproceedsof277,342 for the three months ended December 31, 2024[73] Capital Raising and Financing - The company raised CAD 48,628,964 through private placements during the quarter, significantly boosting its capital[9] - The company plans to finance future operations through equity financings and loans from directors, indicating a strategy for sustainable growth[12] - The company closed a non-brokered private placement on November 4, 2024, issuing 1,612,902 common shares for gross proceeds of 48,628,964 (US35,000,000)withshareissuancecostsof35,000,000) with share issuance costs of 83,720[31] Stock Options and Equity Activity - The balance of outstanding stock options as of December 31, 2024, was 299,350 with a weighted average exercise price of 6.11andaremaininglifeof3.44years[42]−Thecompanygranted70,000stockoptionsonOctober3,2024,withanexercisepriceof6.11 and a remaining life of 3.44 years[42] - The company granted 70,000 stock options on October 3, 2024, with an exercise price of 1.65 per share, which expire on October 3, 2029[40] - The company recognized stock options expense of 129,251andrestrictedshareunitsexpenseof129,251 and restricted share units expense of 47,140 for the three months ended December 31, 2024[48] - On January 27, 2025, the company issued 55,000 common shares upon the exercise of RSUs, indicating ongoing equity activity[78] Liabilities and Obligations - As of December 31, 2024, total accounts payable and accrued liabilities decreased to 388,857from388,857 from 449,299 as of September 30, 2024, representing a reduction of approximately 13.4%[29] - The company reported a decrease in accounts payable to related parties, from 61,061asofSeptember30,2024,to61,061 as of September 30, 2024, to 32,836 as of December 31, 2024[53] - The company has a contractual obligation to pay royalties on net sales ranging from 3% to 4.5%, depending on sales volume, with annual minimum payments starting at 5,000inYear3[56]RiskFactors−Thecompanyisexposedtoforeignexchangerisk,withapotentialimpactofapproximately5,000 in Year 3[56] Risk Factors - The company is exposed to foreign exchange risk, with a potential impact of approximately 5,132,000 on comprehensive income from a 10% fluctuation in the US dollar and Australian dollar against the Canadian dollar[70] - The company has a concentration of credit risk with cash and cash equivalents held with three major banks, assessed as low credit risk[69] Management and Advisory - The total expenses related to key management personnel for the three months ended December 31, 2024, amounted to 627,947,significantlyhigherthan627,947, significantly higher than 321,439 in the same period of 2023[54] - The company granted 12,000 RSUs to advisors as part of its scientific advisory board agreements[63] - The company has entered into consulting agreements with hourly rates ranging from 30to30 to 600, with a total of 60,400 stock options granted to advisors[64] Accounting and Compliance - The company has not yet determined the impact of amendments to accounting standards on its financial statements, which are effective from January 1, 2024[28]