Immunoprecise(IPA) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenue for the three months ended January 31, 2025, was CAD 6,151,000, a decrease of 1.1% compared to CAD 6,221,000 for the same period in 2024[8] - Gross profit for the nine months ended January 31, 2025, increased to CAD 9,088,000, up 1.6% from CAD 8,945,000 in the same period of 2024[8] - The net loss for the period was CAD 21,521,000 for the three months ended January 31, 2025, compared to a net loss of CAD 2,679,000 for the same period in 2024[8] - The company recorded a net loss of $21.52 million for the three months ended January 31, 2025, compared to a net loss of $2.68 million for the same period in 2024[74] - Project revenue for the nine months ended January 31, 2025, was $15.91 million, down 3.6% from $16.51 million in the previous year[73] Expenses and Losses - Research and development expenses rose to CAD 3,854,000 for the nine months ended January 31, 2025, representing a 38.5% increase from CAD 2,783,000 in 2024[8] - The Company incurred an operating loss of $21.5 million for the three months ended January 31, 2025, and has an accumulated deficit of $126.6 million as of the same date[16] - For the nine months ended January 31, 2025, total employee remuneration expenses amounted to $9.09 million, a decrease of 15.5% compared to $10.75 million for the same period in 2024[68] Cash and Assets - Cash and cash equivalents at the end of the period increased to CAD 12,915,000 from CAD 3,459,000 as of April 30, 2024[5] - Total assets decreased to CAD 45,534,000 as of January 31, 2025, down from CAD 59,988,000 as of April 30, 2024[5] - Share capital increased to CAD 136,354,000 as of January 31, 2025, compared to CAD 119,773,000 as of April 30, 2024[5] - As of January 31, 2025, the net book value of intangible assets was $18.623 million, down from $38.814 million as of April 30, 2024[46] - The total net book value of property and equipment was $15.219 million as of January 31, 2025, down from $16.696 million as of April 30, 2024[45] Liabilities and Compliance - The Company is required to raise additional funds to finance operations and strategic goals, with no assurance that sufficient funding will be available[17] - The Company received a Nasdaq deficiency notice on August 19, 2024, for not meeting the minimum bid price requirement of $1.00 per share for 30 consecutive business days[18] - The Company did not regain compliance during the first 180-day compliance period but was granted an additional 180-day period until August 18, 2025, after transferring to the Nasdaq Capital Market[19] - A deferred tax liability of $3.9 million was written off due to an asset impairment for the three months ended January 31, 2025[43] Impairments and Adjustments - The company reported an asset impairment of CAD 21,184,000 for the three months ended January 31, 2025[8] - The company recorded an impairment loss of $21.2 million for the BioStrand cash-generating unit (CGU) during the three-month period ended January 31, 2025, primarily due to delays in expected cash flows[49] - The company recorded an impairment loss of $11.2 million on goodwill and $3.9 million on intangible assets for the BioStrand CGU during the year ended April 30, 2024[48] - The Company corrected an immaterial error related to the recognition of a deferred tax asset, resulting in an adjustment of $1.7 million to the accumulated deficit[32] Share Capital and Equity - The weighted average number of shares outstanding increased to 32,851,233 for the three months ended January 31, 2025, compared to 25,800,919 for the same period in 2024[8] - The company issued 1,265,000 common shares in a public offering during the year ended April 30, 2024, with a public offering price of USD 1.00 per share[57] - Under the at-the-market equity offering facility, the company sold 10,980,551 common shares during the three months ended January 31, 2025, generating proceeds of CAD 10.1 million[59] - The company established an at-the-market equity offering facility with Clear Street LLC, allowing for gross sales of common shares up to USD 60.0 million, later amended to USD 8.8 million[58] Lease and Cash Flow - Total cash outflow for leases during the nine months ended January 31, 2025, was $1.1 million, compared to $1.0 million in the same period of 2024[53] - The company’s total minimum lease payments amount to $16.182 million, with a present value of minimum lease payments at $12.928 million as of January 31, 2025[53] - The total cash flows from financing activities for the three months ended January 31, 2025, were CAD 13,227,000, a decrease from CAD 14,961,000 in the same period of 2024[75] - The total cash flows from leases decreased from CAD 7,267,000 in January 31, 2023, to CAD 12,928,000 in January 31, 2025[75] Foreign Exchange and Other Income - Foreign exchange movements contributed CAD 190,000 to the total cash flows in January 31, 2025, compared to CAD 36,000 in January 31, 2024[75] - The company received €0.1 million in grant income during the nine months ended January 31, 2025, from a previous grant funding of €0.5 million[72]