Workflow
XORTX Therapeutics (XRTX) - 2023 Q4 - Annual Report

Financial Performance - The net loss for the year 2023 was $2,158,065, a significant improvement compared to a net loss of $7,718,882 in 2022, indicating a reduction of about 72%[11] - The company reported a basic and diluted loss per common share of $1.09 for 2023, compared to $5.22 in 2022, showing an improvement of about 79%[11] - For the year ended December 31, 2023, XORTX reported a net loss of $2,158,065, a significant improvement compared to a net loss of $7,718,882 in 2022, representing a reduction of approximately 72%[15] - The company recognized a share-based payment expense of $120,984 during the year ended December 31, 2023, down from $487,940 in 2022[112] - Management compensation for the year ended December 31, 2023, totaled $1,234,694, an increase from $1,412,013 in 2022[123] Assets and Liabilities - As of December 31, 2023, total assets decreased to $5,467,964 from $12,374,026 in 2022, representing a decline of approximately 56%[10] - Total current liabilities decreased to $294,938 in 2023 from $1,511,303 in 2022, a reduction of about 81%[10] - Shareholders' equity as of December 31, 2023, was $4,642,026, down from $6,996,811 in 2022, indicating a decline of approximately 34%[10] - Cash and cash equivalents decreased to $3,447,665 in 2023 from $10,434,196 in 2022, a decline of approximately 67%[10] - The company ended 2023 with cash of $3,447,665, down from $10,434,196 at the end of 2022, reflecting a decrease of approximately 67%[15] - The company has committed to payments totaling $446,000 for clinical trials and other business activities, down from $1,994,232 in 2022[140] - As of December 31, 2023, total accounts payable and accrued liabilities amount to $283,428, a significant decrease from $1,445,213 in 2022[132] - The lease liability as of December 31, 2023, is $11,510, compared to $77,599 in 2022, indicating a reduction in lease obligations[132] Research and Development - Research and development expenses for 2023 were $2,418,715, down from $6,761,818 in 2022, reflecting a decrease of approximately 64%[11] - The company has not capitalized any research and development costs as of December 31, 2023[68] - Research and development costs are expensed as incurred until a drug product receives regulatory approval, with all current research and development costs having been expensed to date[45] - The company plans to raise necessary capital to finance its research and development activities and clinical studies, indicating a focus on future funding strategies[20] - XORTX is focused on developing therapies for progressive kidney disease, particularly targeting conditions like autosomal dominant polycystic kidney disease and type 2 diabetic nephropathy[19] Currency and Financial Reporting - The company changed its presentation currency from Canadian dollars to U.S. dollars effective January 1, 2023[3] - The company has changed its functional and presentation currency from CAD to USD, effective January 1, 2023, to align with its increased presence in the U.S. market[25] - The fair value adjustment on derivative warrant liability for 2023 was a loss of $3,641,403, compared to a loss of $3,396,137 in 2022, showing an increase in losses of about 7%[15] - The company has Canadian non-capital losses carried forward of approximately CAD $21,561,000, with various expiry dates extending to 2043[125] - The risk-free interest rate used in the fair value assessment of derivative warrant liabilities ranged from 3.25% to 3.91% as of December 31, 2023[119] Shareholder Information - The weighted average number of common shares outstanding increased to 1,981,734 in 2023 from 1,479,914 in 2022, an increase of about 34%[11] - The company issued 328,777 common shares for the exercise of pre-funded warrants at $0.0009 per share, raising $296 in January 2023[85] - The total number of outstanding warrants as of December 31, 2023, was 1,125,210, with a weighted average exercise price of CAD $22.31[101] - The company has not declared dividends in the past, and the expected volatility for stock options was 100%[110] - The company plans to amend the exercise price of outstanding warrants from original prices ranging from $10.98 to $42.93 down to $5.00[145] Audit and Compliance - The company has not identified any critical audit matters during the audit process[7] - The company recognizes deferred tax assets for unused tax losses and credits to the extent that it is probable future taxable profits will be available[60] - The company assesses impairment of intangible assets and equipment when events indicate that the carrying amount may not be recoverable, recognizing impairment losses when necessary[48] - The company has no exposure to the ongoing banking crisis, as all cash is held with major financial institutions in Canada[128] - There have been no changes in risk management policies since December 31, 2023, indicating stability in financial risk management[134]