Cardiol Therapeutics(CRDL) - 2025 Q1 - Quarterly Report

Financial Statements Condensed Interim Consolidated Statements of Financial Position As of March 31, 2025, total assets decreased to $25.5 million from $31.9 million at the end of 2024, primarily due to reduced cash and cash equivalents, while total liabilities slightly increased to $7.9 million and total equity significantly decreased to $17.6 million due to net loss Consolidated Balance Sheet Summary (unaudited) | Balance Sheet Items | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Current Assets | | | | Cash and cash equivalents | 23,292,701 | 30,580,029 | | Total current assets | 25,272,350 | 31,668,159 | | Total Assets | 25,454,895 | 31,863,751 | | Current Liabilities | | | | Accounts payable and accrued liabilities | 7,716,431 | 6,976,736 | | Total current liabilities | 7,750,683 | 7,009,745 | | Total Liabilities | 7,867,091 | 7,135,268 | | Total Equity | 17,587,804 | 24,728,483 | Condensed Interim Consolidated Statements of Loss and Comprehensive Loss For the three months ended March 31, 2025, the company reported a net loss of $8.3 million, an improvement from the $9.2 million net loss in the same period of 2024, primarily due to the absence of a significant loss from derivative liability Statement of Loss Summary (unaudited) | Income Statement Items | Three Months Ended Mar 31, 2025 ($) | Three Months Ended Mar 31, 2024 ($) | | :--- | :--- | :--- | | General and administration | 4,671,651 | 5,082,552 | | Research and development | 3,757,412 | 3,322,929 | | Loss before other income (expenses) | (8,429,063) | (8,405,481) | | Net loss and comprehensive loss | (8,287,653) | (9,179,632) | | Basic and diluted net loss per share | (0.10) | (0.14) | Condensed Interim Consolidated Statements of Cash Flows In Q1 2025, net cash used in operating activities increased slightly to $7.2 million, with minimal investing and financing activities, resulting in cash and cash equivalents decreasing to $23.3 million from $30.6 million Cash Flow Summary (unaudited) | Cash Flow Items | Three Months Ended Mar 31, 2025 ($) | Three Months Ended Mar 31, 2024 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | (7,153,767) | (6,922,793) | | Net cash used in investing activities | (11,939) | (3,460) | | Net cash provided by (used in) financing activities | (13,844) | 76,353 | | Net change in cash and cash equivalents | (7,179,550) | (6,849,900) | | Cash and cash equivalents, beginning of period | 30,580,029 | 34,931,778 | | Cash and cash equivalents, end of period | 23,292,701 | 28,572,975 | Condensed Interim Consolidated Statements of Changes in Equity Total equity decreased from $24.7 million at the end of 2024 to $17.6 million as of March 31, 2025, primarily due to the $8.3 million net loss, partially offset by $1.1 million in share-based compensation Changes in Equity Summary (unaudited) | Equity Items | Three Months Ended Mar 31, 2025 ($) | | :--- | :--- | | Balance, December 31, 2024 | 24,728,483 | | Share-based compensation | 1,146,974 | | Net loss and comprehensive loss for the period | (8,287,653) | | Balance, March 31, 2025 | 17,587,804 | Notes to Condensed Interim Consolidated Financial Statements 1. Nature of operations Cardiol Therapeutics Inc. is a clinical-stage life sciences company focused on developing anti-inflammatory and anti-fibrotic therapies for heart disease, with its lead drug candidate CardiolRx™ trading on the TSX and Nasdaq under 'CRDL' - The company is a clinical-stage life sciences entity focused on developing treatments for heart disease[11] - The lead drug candidate is CardiolRx™ (cannabidiol) oral solution, which is currently in clinical development[11] - The company's common shares are listed on the TSX and The Nasdaq Capital Market under the ticker 'CRDL'[12] 2. Material accounting policy information The unaudited condensed interim consolidated financial statements were prepared in accordance with International Accounting Standard 34 (IAS 34), Interim Financial Reporting, with consistent accounting policies and computation methods as the 2024 annual financial statements - The financial statements adhere to International Accounting Standard 34, Interim Financial Reporting[13] - Accounting policies are consistent with the annual consolidated financial statements for the year ended December 31, 2024[15] 6. Derivative liability The derivative liability related to 8,175,000 warrants issued in November 2021 is no longer on the balance sheet as they expired unexercised during 2024, eliminating the $1.8 million non-cash revaluation expense seen in Q1 2024 - The 8,175,000 warrants previously classified as a derivative liability expired unexercised during 2024[20] - In Q1 2024, the company recorded a $1.8 million loss from the change in value of this derivative liability; this expense was absent in Q1 2025[20] 7. Share capital As of March 31, 2025, the company's authorized share capital consists of an unlimited number of common shares, with the number of issued and outstanding common shares remaining unchanged at 82,608,992 during Q1 2025 Common Shares Issued | Date | Number of common shares | Amount ($) | | :--- | :--- | :--- | | Balance, Dec 31, 2024 | 82,608,992 | 179,335,421 | | Balance, Mar 31, 2025 | 82,608,992 | 179,335,421 | 8. Share-based payments The company recorded $1.15 million in share-based compensation expenses in Q1 2025, an increase from $0.90 million in Q1 2024, driven by the issuance of 1.2 million new stock options and an increase in outstanding stock options to 2.52 million - Total share-based compensation expense for Q1 2025 was $1,146,974, compared to $902,100 for Q1 2024[24] Stock Options Stock Option Activity | | Number of stock options | Weighted average exercise price ($) | | :--- | :--- | :--- | | Balance, Dec 31, 2024 | 1,487,500 | 2.76 | | Issued | 1,200,000 | 1.63 | | Expired | (170,000) | 2.68 | | Balance, Mar 31, 2025 | 2,517,500 | 2.22 | Performance Share Units (PSUs) - There were no outstanding Performance Share Units (PSUs) as of December 31, 2024, and March 31, 2025[29] - Subsequent to the quarter end, 74,000 PSUs were granted[30] Restricted Share Units (RSUs) - The number of outstanding Restricted Share Units (RSUs) remained unchanged at 4,852,299 during Q1 2025[32] - As of March 31, 2025, there were 4,852,299 RSUs outstanding, of which 2,157,715 were vested and exercisable[33] 9. Warrants As of March 31, 2025, the company had no warrants outstanding, as the previous balance of 11,628,178 warrants expired during 2024 - The company had no warrants outstanding as of March 31, 2025[34] 10. Loss per share The basic and diluted loss per share for Q1 2025 was $0.10, an improvement from $0.14 per share in Q1 2024, based on an $8.3 million net loss and 82.6 million weighted average shares outstanding Loss Per Share Calculation | Metric | Three Months Ended Mar 31, 2025 ($) | Three Months Ended Mar 31, 2024 ($) | | :--- | :--- | :--- | | Net loss ($) | (8,287,653) | (9,179,632) | | Weighted average shares | 82,608,992 | 67,259,344 | | Loss per share ($) | (0.10) | (0.14) | 11. Commitments The company has future commitments totaling approximately $2.25 million, including $384,211 for leased premises, $197,969 for consultant services, and $1.66 million for contract research services, all extending through 2028 Summary of Financial Commitments | Commitment Type | Total Amount ($) | | :--- | :--- | | Leased Premises (through 2028) | 384,211 | | Consultant Services (2025) | 197,969 | | Contract Research Services (through 2028) | 1,663,063 | 13. Related party transactions Remuneration for key management personnel, including directors, totaled $1.77 million in Q1 2025, an increase from $1.39 million in Q1 2024, primarily driven by higher share-based payments Key Management Remuneration | Compensation Type | Three Months Ended Mar 31, 2025 ($) | Three Months Ended Mar 31, 2024 ($) | | :--- | :--- | :--- | | Salaries and benefits | 1,305,013 | 1,264,404 | | Share-based payments | 468,960 | 121,440 | | Total | 1,773,973 | 1,385,844 |