Acasti Pharma(ACST) - 2026 Q1 - Quarterly Report

Financial Performance - The company reported a net loss of $3,362,000 for the three months ended June 30, 2025, compared to a net loss of $2,617,000 for the same period in 2024, representing an increase in loss of about 28.4%[20] - The company incurred a loss from operating activities of $3,090,000 for the three months ended June 30, 2025, compared to a loss of $4,963,000 for the same period in 2024, showing an improvement of about 37.8%[20] - The effective income tax rate for the three months ended June 30, 2025, was 0.00%, a decrease from 21.67% for the same period in 2024[79] - The company has not generated any revenue and expects to continue incurring significant expenses and operating losses as it advances product candidates through development stages[76] Assets and Liabilities - As of June 30, 2025, the company's total assets decreased to $69,805,000 from $71,993,000 as of March 31, 2025, reflecting a decline of approximately 3.0%[18] - The company's cash and cash equivalents decreased to $20,005,000 as of June 30, 2025, down from $22,133,000 at the beginning of the period, a decline of approximately 9.6%[23] - The total stockholders' equity decreased to $63,550,000 as of June 30, 2025, from $66,610,000 as of March 31, 2025, indicating a decline of approximately 4.0%[18] - Total liabilities measured at fair value were $1,628, primarily from derivative warrant liabilities valued at $1,628[47] Research and Development - Research and development expenses for the three months ended June 30, 2025, were $955,000, a decrease of 64.7% compared to $2,708,000 for the same period in 2024[20] - The company is focused on the development of GTx-104 while planning further development of GTx-102 and GTx-101 contingent on securing additional funding or strategic partnerships[31] Funding and Capital Structure - The company completed a private placement in February 2025, raising net proceeds of $13,705,000 to support its operations[32] - In September 2023, the Company raised net proceeds of $7,338 from a private placement, selling 1,951,371 common shares at $1.848 each[57] - The Company has authorized up to 10,000,000 shares of preferred stock, with none issued or outstanding[50] - The Company has 4,418,292 common warrants from the 2025 Private Placement, exercisable at $3.395 per share[59] Stock-Based Compensation - For the three months ended June 30, 2025, total stock-based compensation expense was $302, compared to $238 for the same period in 2024[70] - As of June 30, 2025, the company had $710 of total unrecognized compensation cost related to non-vested stock options, expected to be recognized over a remaining weighted-average vesting period of 1.42 years[70] - The 2024 Equity Incentive Plan was approved on September 30, 2024, with 1,350,000 shares authorized for issuance and 943,470 shares available for future issuance as of June 30, 2025[68] Cash Flow and Commitments - The company has been operating with significant losses and negative cash flows since inception, indicating ongoing financial challenges[29] - The company had commitments of $185 to contract manufacturing organizations (CMOs) for the next twelve months as of June 30, 2025[82] Derivative Liabilities - The Company’s derivative warrant liabilities are classified as Level 3 inputs, indicating they are measured using unobservable inputs[47] - As of June 30, 2025, the balance of derivative warrant liabilities was $1,628, a decrease from $2,964 as of June 30, 2024, reflecting a change in fair value of $487[62]