Acasti Pharma(US:ACST)2024-06-21 11:30Financial Position - As of March 31, 2024, the company reported cash and cash equivalents of $23.0 million and intangible assets and goodwill of $49.3 million[282]. - Cash and cash equivalents as of March 31, 2024, were $23.0 million, a decrease of $4.9 million from $27.9 million in 2023[306]. - The company has $6.0 million in commitments for contract research organizations (CROs) for the next twelve months as of March 31, 2024[314]. - The company maintains cash and cash equivalents at accredited financial institutions, exceeding federally insured limits, to manage credit risk[331]. - Interest rate risk exposure as of March 31, 2024, is limited due to short-term investments held to maturity[332]. Financial Performance - The net loss for the year ended March 31, 2024, was $12.9 million, a decrease of $29.6 million from the net loss of $42.4 million for the year ended March 31, 2023[286]. - Net cash used in operating activities improved to $12.3 million in 2024 from $15.9 million in 2023, a reduction of $3.6 million[306]. - Investing activities generated cash of $104 thousand in 2024, a significant decrease from $13.2 million in 2023[307]. - Net cash provided by financing activities was $7.4 million in 2024, primarily from a September 2023 offering, compared to $304 thousand in 2023[308]. - The company completed a private placement on September 24, 2023, raising approximately $7.3 million by selling 1,951,371 Class A common shares at $1.848 each[309][311]. Expenses - Research and development expenses for the year ended March 31, 2024, totaled $4.7 million, down from $10.0 million in the previous year, primarily due to a focus on the GTX-104 drug candidate[284][289]. - General and administrative expenses decreased to $6.4 million for the year ended March 31, 2024, from $7.6 million in the prior year, mainly due to a reduction in headcount[294]. - Sales and marketing expenses were $252 thousand for the year ended March 31, 2024, down from $661 thousand in the previous year, reflecting a reduction in headcount[296][297]. - The company incurred $1.5 million in restructuring costs related to workforce reductions aimed at prioritizing resources for GTX-104[298]. Impairment and Valuation - An impairment of intangible assets of $28.7 million was recorded for the year ended March 31, 2023, compared to none for the year ended March 31, 2024[301]. - The impairment of intangible assets recorded for the year ended March 31, 2023, was $28.7 million, resulting in a recovery of $8.6 million of the related deferred tax liability[323]. - The estimated fair values of intangible assets are based on significant assumptions, including the probability of clinical success and projected net sales[324]. - The projected discounted cash flow model indicates that an impairment loss for GTX-101, GTX-102, and GTX-104 would occur if net sales assumptions decrease by more than approximately 32.3%, 21.0%, and 50.7% respectively[326]. - Changes in forecasted cash flows and selected discount rates could materially affect the estimation of fair value and result in impairment charges in future quarters[328]. Future Outlook - The company plans to defer further development of GTX-102 and GTX-101 until additional funding or strategic partnerships are secured[299]. - The company does not expect to generate revenue from product sales until drug development is successfully completed and regulatory approval is obtained, which is anticipated to take several years[334]. - The company expects to have sufficient cash resources to meet objectives into the second calendar quarter of 2026, requiring additional capital to fund operations beyond that time[335]. - The company has incurred operating losses and negative cash flows from operations since inception, expecting significant expenses and continued losses for the foreseeable future[333]. Internal Controls - Management has concluded that internal controls over financial reporting were effective as of March 31, 2024, based on an assessment using COSO criteria[338]. - No changes were made to internal controls over financial reporting during the three months ended March 31, 2024, that materially affected their effectiveness[339]. Interest Income - Interest income increased to $911 thousand for the year ended March 31, 2024, compared to $246 thousand in the previous year, due to higher interest rates on cash balances[304]. Derivative Liabilities - The fair value of derivative warrant liabilities increased by $2.7 million for the year ended March 31, 2024, primarily due to an increase in the company's stock price[303].