Financial Performance - For the three months ended December 31, 2024, Edesa Biotech reported a comprehensive loss of $1.6 million, resulting in an accumulated deficit of $60.2 million[23]. - The company had a net cash outflow from operating activities of $1.5 million and ended the quarter with $1.6 million in cash and cash equivalents[23]. - The company reported a net loss per common share of $0.48, an improvement from a loss of $0.54 per share in the previous year[13]. - Net loss for the three months ended December 31, 2024, was $1.6 million, or $0.48 per common share, compared to a net loss of $1.7 million, or $0.54 per common share for the same period in 2023[99]. - Net cash used in operating activities was $1.5 million for the three months ended December 31, 2024, compared to $1.4 million for the same period in 2023[103]. Expenses - Research and development expenses increased to $1.02 million from $0.70 million year-over-year, reflecting a growth of approximately 45%[13]. - General and administrative expenses decreased to $0.88 million from $1.15 million year-over-year, a reduction of about 24%[13]. - Total operating expenses remained unchanged at $1.9 million for both the three months ended December 31, 2024, and December 31, 2023[99]. - Research and development (R&D) expenses increased by $0.3 million to $1.0 million for the three months ended December 31, 2024, primarily due to increased external research expenses[100]. - General and administrative (G&A) expenses decreased by $0.3 million to $0.9 million for the three months ended December 31, 2024, due to a decrease in salaries and related costs[100]. Assets and Liabilities - Total current assets increased to $2.07 million from $1.68 million, a rise of approximately 24%[11]. - Total assets grew to $4.16 million from $3.81 million, marking an increase of about 9%[11]. - At December 31, 2024, the company had an accumulated deficit of $60.2 million and working capital of $0.2 million[111]. Financing Activities - The company issued 220,269 common shares, raising $0.63 million, and received $1.54 million from the issuance of Series A-1 preferred shares and warrants[19]. - The Company entered into a Securities Purchase Agreement to issue Series A-1 Convertible Preferred Shares for up to $5 million, with an initial conversion price of $3.445 per share[43]. - The Company sold 834 Series B-1 Preferred Shares at a purchase price of $10,000 each, generating gross proceeds of approximately $15.0 million[80]. - The company received gross proceeds of $15.0 million from the sale of common shares and Series B-1 Preferred Shares in a private placement subsequent to the quarter[111]. - Net cash provided by financing activities was $2.1 million for the three months ended December 31, 2024, compared to $0.3 million for the same period in 2023, with $1.5 million from the sale of Series A-1 Preferred Shares[115]. Commitments and Contingencies - The Company has commitments for contracted research organizations with approximate future contractual payments totaling $85,000 through September 30, 2029[38]. - The Company is committed to payments of up to $356 million under a license agreement contingent upon meeting certain commercial approval and sales milestones[39]. - The maximum amount repayable under the 2023 SIF Agreement is 1.4 times the original repayable amount, with repayments starting in 2029 based on revenue growth[64]. - The Company has a commitment to pay royalties based on net sales of products containing the Constructs, with no payments made during the three months ended December 31, 2024[39]. Research and Development - The Company plans to provide drug product and technical support for a Phase 2 clinical trial of its drug candidate, EB05, selected by BARDA[42]. - The company is developing EB06 for vitiligo, with regulatory approval from Health Canada for a Phase 2 study and data submission to the FDA anticipated in mid-2025[90]. - The most advanced respiratory drug candidate, EB05, is being evaluated in a U.S. government-funded study for Acute Respiratory Distress Syndrome (ARDS)[91]. - The company plans to commit substantial resources to R&D, clinical trials, and potential product acquisitions to augment its internal development pipeline[112]. Shareholder Information - The weighted average number of common shares outstanding increased to 3,345,135 from 3,128,024, reflecting a growth of approximately 7%[13]. - The total number of shares available for issuance under the 2019 Equity Incentive Compensation Plan is 642,737, with 119,574 shares remaining available for grant as of December 31, 2024[56]. - The remaining balance of restricted share units (RSUs) as of December 31, 2024 was 77,554, all of which vested immediately upon grant[62]. - As of the filing date, the Company believes it has shareholders' equity of at least $2.5 million, satisfying the minimum Nasdaq listing requirement[81]. Legal and Regulatory Matters - The company is not currently a party to any material legal proceedings or claims outside the ordinary course of business[125]. - The company reported no changes in internal control over financial reporting that materially affected its financial reporting during the quarter ended December 31, 2024[122].
Edesa Biotech(EDSA) - 2025 Q1 - Quarterly Report