Theratechnologies(THTX) - 2025 Q1 - Quarterly Report

Financial Performance - Revenue for the three-month period ended February 28, 2025, was $19,047,000, representing a 17.4% increase from $16,247,000 in the same period of 2024[4] - The net profit for the period was $117,000, a significant improvement compared to a net loss of $4,481,000 in the prior year[4] - For the three-month period ended February 28, 2025, the Company generated a net profit of $117, compared to a net loss of $4,481 in the same period of 2024[17] - Revenue from the primary customer, RxCrossroads, was $19,047 for the three-month period ended February 28, 2025, up from $16,169 in 2024[70] Operating Expenses - Operating expenses decreased to $17,152,000 in Q1 2025 from $18,493,000 in Q1 2024, a reduction of approximately 7.2%[4] - Research and development expenses were $2,969,000, a decrease from $3,752,000 in the previous year, reflecting a reduction of 20.8%[4] - The company recorded share-based compensation expense of $646 for the three-month period ended February 28, 2025, down from $689 in 2024[56] - Non-refundable tax credits of $185 were recorded against research and development expenses for the three months ended February 28, 2025, compared to $0 in 2024[59] - Total refundable and non-refundable research and development tax credits recorded for the three months ended February 28, 2025 were $194, an increase from $32 in 2024[60] Assets and Liabilities - Total assets increased to $56,451,000 as of February 28, 2025, up from $53,340,000 as of November 30, 2024, reflecting a growth of 3.95%[3] - Current liabilities decreased to $35,149,000 from $36,861,000, a decline of approximately 4.6%[3] - The company reported a total equity of $(24,467,000) as of February 28, 2025, an improvement from $(25,272,000) as of November 30, 2024[3] - As of February 28, 2025, the Company had cash of $3,905 and working capital of $2,668, with an accumulated deficit of $416,770[17] Cash Flow - The company generated cash flows from operating activities of $2,457,000, compared to cash outflows of $3,129,000 in the prior year[8] - The Company experienced negative cash flows from operating activities of $9,744 for the three-month period ended February 28, 2025, compared to $1,708 in 2024[17] - The Company expects its existing cash and cash equivalents, along with cash generated from operations, to be sufficient to fund operating expenses for at least the next 12 months[16] Debt and Financing - The company issued long-term debt amounting to $5,000,000 during the period, contributing to financing activities[8] - Total long-term debt as of February 28, 2025, is $45,089,000, compared to $40,939,000 as of February 29, 2024, representing an increase of 10.5%[40] - The TD Term Loan has a face value of $25,000,000 with an interest rate of 7.17%, maturing on November 27, 2027, and includes a $20,000,000 accordion feature[40] - The IQ Term Loan has a face value of $15,000,000 with an interest rate of 11.45%, maturing on May 27, 2028[45] - As of February 28, 2025, the Company drew $5,000,000 from the TD Revolver to fund working capital[40] Regulatory and Product Development - The FDA approved the supplemental Biologics License Application for the F8 formulation of tesamorelin, which will be commercialized as EGRIFTA WR™, expected to launch in Q3 2025[20] - The Company filed a Prior Approval Supplement with the FDA on December 18, 2024, to resume distribution of EGRIFTA SV® after a temporary supply disruption[18] - The Company has entered into an agreement with Ionis Pharmaceuticals to license two investigational RNA-targeted medicines, with an initial payment of $10,000 and potential milestone payments up to $12,750[35] - The Company plans to transition from EGRIFTA SV® to EGRIFTA WR™, which is critical for meeting Adjusted EBITDA covenants[21] Stock and Options - As of February 28, 2025, the Company has 5,026,208 stock options outstanding, with a weighted average exercise price of CAD 4.98[53] - The Company has a total of 2,128,406 options available for grant under the stock option plan as of February 28, 2025[52] - The company expects to grant stock options with a fair value of $1,781 in 2025, with a planned issuance price of CA$2.40 and US$1.65[56] Compliance and Covenants - The Company was in compliance with all financial covenants as of February 28, 2025[46] - The TD Credit Agreement restricts the ability to incur additional debt and make acquisitions, except in limited circumstances[42] Fair Value and Tax - The company has determined that the carrying values of its short-term financial assets and liabilities approximate their fair value due to their short maturity[65] - The effective tax rate may differ from management's estimate due to expectations of generating taxable income in fiscal 2025[58]