DiaMedica Therapeutics(US:DMAC)2025-05-13 20:31Financial Performance - For the three months ended March 31, 2025, the net loss was $7.7 million, compared to a net loss of $5.2 million for the same period in 2024, resulting in an accumulated deficit of $147.7 million as of March 31, 2025[72]. - Other income, net, decreased to $443 thousand for the three months ended March 31, 2025, compared to $597 thousand for the same period in 2024, due to reduced interest income from lower average marketable securities balances[81]. - The net cash used in operating activities for the three months ended March 31, 2025, was $7.1 million, an increase from $6.7 million for the same period in 2024, representing a rise of approximately 6.0%[84]. - The company reported net cash provided by financing activities of $91 thousand for the three months ended March 31, 2025, a significant improvement from a net cash outflow of $1 thousand in the same period of 2024[86]. Research and Development - Research and development (R&D) expenses increased to $5.7 million for the three months ended March 31, 2025, up from $3.7 million for the same period in 2024, primarily due to the continuation of the ReMEDy2 clinical trial and increased manufacturing development activity[79]. - The ReMEDy2 clinical trial aims to enroll approximately 300 participants at up to 100 sites globally, with an adaptive design that includes an interim analysis after the first 200 participants[71]. - The Phase 2 study for preeclampsia (PE) is expected to evaluate up to 90 women, with preliminary topline results anticipated between June and July 2025[69]. - DM199 has received Fast Track designation from the FDA for the treatment of acute ischemic stroke (AIS) and is the first recombinant form of KLK1 undergoing global clinical development[64]. Cash and Liquidity - As of March 31, 2025, the company had cash, cash equivalents, and marketable securities totaling $37.3 million, down from $44.1 million as of December 31, 2024, reflecting a decrease of approximately 15.5%[82][83]. - The company anticipates that its current cash resources will be sufficient to fund operations for at least the next 12 months, although future funding requirements may arise earlier than expected[74]. - The company may require significant additional funds earlier than currently expected, particularly if market conditions for raising capital are favorable[88][90]. Operating Expenses - General and administrative (G&A) expenses were $2.5 million for the three months ended March 31, 2025, compared to $2.1 million for the same period in 2024, driven by additional non-cash share-based compensation expenses[80]. - Future operating losses are expected to increase moderately as the company continues its clinical trials and expands its team to support operations[73]. - The company anticipates needing substantial additional capital to complete R&D activities and expects operating losses to moderately increase in the near term[88]. Funding and Capital Requirements - The company has not generated any revenues from product sales and has financed operations primarily through equity sales, interest income, and government grants[72]. - The company has not generated any revenues from product sales and does not expect to do so for at least three to four years, indicating ongoing reliance on external funding[87]. - The most recent equity financing raised gross proceeds of $11.8 million from the issuance of 4,720,000 common shares at $2.50 per share, approximately 10% above the closing price on the offering date[89]. - If adequate funding is not available, the company may need to implement cost reduction strategies, including potential layoffs or scaling back development efforts[91].