XORTX Therapeutics (XRTX) - 2025 Q2 - Quarterly Report

Condensed Interim Consolidated Financial Statements This section presents the company's financial position, performance, equity changes, and cash flows for the interim period Condensed Interim Consolidated Statements of Financial Position The company's total assets decreased from $4,094,527 at December 31, 2024, to $2,742,018 at June 30, 2025, primarily due to a significant reduction in cash. Total liabilities also decreased slightly, while shareholders' equity saw a substantial decline Consolidated Statements of Financial Position Summary | Item | June 30, 2025 ($) | December 31, 2024 ($) | Change ($) | Change (%) | | :--------------------------------- | :------------------ | :-------------------- | :--------- | :--------- | | Cash | 1,063,477 | 2,473,649 | (1,410,172) | -57.01% | | Total Current Assets | 1,264,520 | 2,676,698 | (1,412,178) | -52.76% | | Total Assets | 2,742,018 | 4,094,527 | (1,352,509) | -33.03% | | Total Liabilities | 711,455 | 757,990 | (46,535) | -6.14% | | Total Shareholders' Equity | 2,030,563 | 3,336,537 | (1,305,974) | -39.14% | Condensed Interim Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income XORTX Therapeutics Inc. reported a net loss for the three and six months ended June 30, 2025, contrasting with a net income in the three months ended June 30, 2024. The loss for the six-month period significantly decreased compared to the prior year, driven by reduced investor relations and professional fees, despite increased R&D expenses Consolidated Statements of (Loss) Income Summary | Item | Three months ended June 30, 2025 ($) | Three months ended June 30, 2024 ($) | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :------------------------------------------ | :----------------------------------- | :----------------------------------- | :--------------------------------- | :--------------------------------- | | Research and development | 186,751 | 67,683 | 463,060 | 141,326 | | Investor relations | 155,859 | 502,265 | 305,902 | 941,670 | | Professional fees | 100,882 | 274,635 | 182,716 | 394,845 | | Loss before other items | (889,945) | (1,493,690) | (1,853,401) | (2,582,306) | | Fair value adjustment on derivative warrant liability | 149,000 | 1,645,548 | 395,000 | (79,244) | | Net (loss) income for the period | (717,700) | 170,066 | (1,416,373) | (2,848,870) | | Basic and diluted (loss) income per common share | (0.19) | 0.06 | (0.38) | (1.07) | Condensed Interim Consolidated Statements of Changes in Shareholders' Equity Shareholders' equity decreased from $3,336,537 at December 31, 2024, to $2,030,563 at June 30, 2025, primarily due to the comprehensive loss for the period of $(1,416,373), partially offset by share issuances and pre-funded warrant exercises Shareholders' Equity Changes | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------------------------ | :------------------ | :-------------------- | | Balance, December 31, 2023 | 4,642,026 | 4,642,026 | | Shares issued pursuant to at-the-market offering | 113,547 | - | | Pre-funded warrants exercised | 2 | 3 | | Share-based payments | 15,914 | 25,362 | | Comprehensive loss for the period | (1,416,373) | (464,476) | | Balance, June 30, 2025 / December 31, 2024 | 2,030,563 | 3,336,537 | Condensed Interim Consolidated Statements of Cash Flows Cash decreased by $1,410,172 during the six months ended June 30, 2025, primarily due to cash used in operating activities ($1,437,249), partially offset by cash provided by financing activities ($24,133). This contrasts with a smaller decrease in cash in the prior year period Consolidated Statements of Cash Flows Summary | Cash Flow Activity | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Net loss for the period | (1,416,373) | (2,848,870) | | Cash provided by (used in) operating activities | (1,437,249) | (2,040,389) | | Cash provided by (used in) investing activities | (25,210) | (11,707) | | Cash provided by (used in) financing activities | 24,133 | 1,694,710 | | Decrease in cash | (1,410,172) | (369,193) | | Cash, beginning of period | 2,473,649 | 3,447,665 | | Cash, end of period | 1,063,477 | 3,078,472 | Notes to the Condensed Interim Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the condensed interim consolidated financial statements, covering accounting policies, judgments, and specific financial instrument details 1. Nature of operations and going concern XORTX Therapeutics Inc. is a late-stage clinical pharmaceutical company developing therapies for gout and progressive kidney disease. The company faces significant risks related to product development, regulatory approval, and financing, indicating a material uncertainty about its ability to continue as a going concern - XORTX is a late-stage clinical pharmaceutical company focused on developing innovative therapies to treat gout and progressive kidney disease modulated by aberrant purine and uric acid metabolism in orphan disease indications[9] - The Company's ability to continue as a going concern is subject to material uncertainty due to the need for additional funding for future projects and operations, and the requirement for U.S. Food and Drug Administration (FDA) and equivalent organizations' approvals for its products[10] 2. Basis of preparation The condensed interim consolidated financial statements are prepared in accordance with IAS 34, Interim Financial Reporting, using the historical cost convention, except for financial instruments measured at fair value. They consolidate the Company and its 100% owned subsidiary, XORTX Pharma Corp., and were approved by the Board on August 14, 2025 - These condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard 34 (IAS 34), Interim Financial Reporting[11] - The statements use the historical cost convention except for financial instruments which have been measured at fair value, and were prepared on an accrual basis except for cash flow information[12] - The financial statements incorporate the Company and its 100% owned subsidiary, XORTX Pharma Corp., with inter-company transactions eliminated[13] 3. Material Accounting policies The condensed interim consolidated financial statements adhere to the material accounting policies disclosed in the annual financial statements for the year ended December 31, 2024 - These condensed interim consolidated financial statements have been prepared on a basis consistent with the material accounting policies disclosed in the annual financial statements for the year ended December 31, 2024[15] 4. Critical accounting judgments and estimates Management's preparation of financial statements involves significant judgments and estimates, particularly concerning share-based payments, warrant liabilities, classification of contract payments, impairment of intangible assets, functional currency, capitalization of R&D costs, lease accounting, pre-funded warrant classification, and current/deferred taxes - The preparation of condensed interim consolidated financial statements requires management to make judgments and estimates that affect the amounts reported, which are subject to change and could materially impact future periods[16] - Critical accounting judgments and estimates include share-based payment transactions and warrant liabilities, classification of contract payments, impairment of intangible assets, determination of functional currency, treatment of research and development costs, leases, classification of pre-funded warrants, and current and deferred taxes[17][18][19][20][21][22][23][24] Share-based payment transactions and warrant liabilities Estimating fair value for share-based transactions and warrant liabilities requires determining the most appropriate valuation model and inputs - Estimating fair value for share-based transactions and warrant liabilities requires determining the most appropriate valuation model and inputs, including expected life, volatility, and dividend yield[17] Classification of contract payments Contract payments are classified as a non-current asset based on management's assessment of future program completion timelines - Contract payments are classified as a non-current asset based on management's assessment that future regulatory and clinical trial programs would not be completed within 12 months[18] Impairment of intangible assets Patents and licenses are reviewed for impairment at each financial reporting date, with impairment recognized if carrying value exceeds recoverable value - Patents and licenses are reviewed for impairment at each financial reporting date, with impairment recognized if the carrying value exceeds the recoverable value[19] Determination of functional currency The U.S. dollar is determined to be the functional currency of the Company and its subsidiary, based on its influence on costs and financing - The U.S. dollar is concluded to be the functional currency of the Company and its subsidiary, based on the currency mainly influencing costs and financing[20] Treatment of research and development costs Development costs are capitalized only if they meet IAS 38 criteria for recognition as intangible assets, including technical and economic viability - Costs to develop products are capitalized only if they meet the criteria for recognition as intangible assets in IAS 38, including technical and economic viability and future benefit generation[21] - The Company has not capitalized any development costs as at June 30, 2025[21] Leases Valuing right-of-use assets and lease obligations requires judgment in determining lease terms, identifying the underlying asset, and estimating the incremental borrowing rate - Valuing right-of-use assets and lease obligations requires judgment in determining lease terms, identifying the underlying asset, and estimating the incremental borrowing rate[22] Classification of pre-funded warrants Management classified pre-funded warrants as an equity instrument after considering the characteristics of derivative instruments - Management classified pre-funded warrants as an equity instrument after considering the characteristics of derivative instruments[23] Current and deferred taxes Measurement of income taxes payable and deferred income tax assets and liabilities requires management judgment in interpreting tax laws and estimating future taxable income - Measurement of income taxes payable and deferred income tax assets and liabilities requires management judgment in interpreting tax laws and estimating future taxable income or loss and taxation rates[24] 5. Cash The Company's cash, held in bank and brokerage accounts, decreased significantly from $2,473,649 at December 31, 2024, to $1,063,477 at June 30, 2025. Interest-bearing deposits constitute the majority of cash, earning an annual rate of 4.10% as of June 30, 2025 Cash and Interest-Bearing Deposits | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :-------------------- | :------------------ | :-------------------- | | Cash | 115,753 | 53,686 | | Interest-bearing deposits | 947,724 | 2,419,963 | | Total Cash | 1,063,477 | 2,473,649 | - The current annual interest rate earned on interest-bearing deposits is 4.10% as of June 30, 2025, up from 3.62% at December 31, 2024[25] 6. Prepaid expenses Prepaid expenses decreased from $185,412 at December 31, 2024, to $97,589 at June 30, 2025, primarily due to a reduction in prepaid insurance Prepaid Expenses Breakdown | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :-------------------------------- | :------------------ | :-------------------- | | Research and development | — | 1,167 | | Insurance | 52,250 | 158,007 | | Investor relations conferences and services | 35,301 | 19,490 | | Administrative services and other | 10,038 | 6,748 | | Total Prepaid Expenses | 97,589 | 185,412 | 7. Contract payments The Company holds $1,200,000 in contract payments from an agreement with Prevail InfoWorks Inc. (entered in 2020), which are to be applied to future regulatory and clinical trial programs - The Company has $1,200,000 in contract payments to be applied to future regulatory and clinical trial programs, stemming from an agreement with Prevail InfoWorks Inc. in 2020[28] 8. Intangible assets Intangible assets, primarily licensed intellectual property, increased in carrying value from $183,108 at December 31, 2024, to $195,008 at June 30, 2025, due to additions of $25,210, partially offset by amortization. The company has various licensing agreements for patents related to hypertension, metabolic syndrome, and insulin resistance Intangible Assets Carrying Values | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :---------------------- | :------------------ | :-------------------- | | Cost | 400,937 | 375,727 | | Accumulated amortization | 205,929 | 192,619 | | Carrying values | 195,008 | 183,108 | - Additions to intangible assets for the six months ended June 30, 2025, totaled $25,210, while amortization was $13,310[29] - Intangible assets relate solely to licensed intellectual property, including patents for allopurinol in hypertension, intellectual property for metabolic syndrome, and an exclusive license for insulin resistance treatment[30][32] Licensed patents for hypertension treatment The Company licensed patents for allopurinol for hypertension treatment, agreeing to future royalties on net revenues - The Company licensed patents for allopurinol for hypertension treatment, paying $40,000 and agreeing to future royalties on net revenues, with no royalties accrued or paid as of June 30, 2025[30] Licensed IP for metabolic syndrome treatment The Company licensed intellectual property for using uric acid lowering agents to improve metabolic syndrome treatment, with future royalty payments - The Company licensed intellectual property for the use of uric acid lowering agents to improve metabolic syndrome treatment, with future royalty payments based on net revenues, and no royalties accrued or paid as of June 30, 2025[32] Exclusive license for insulin resistance treatment The Company acquired an exclusive license from UFRF for a patent claiming the use of any uric acid lowering agent to treat insulin resistance - The Company acquired an exclusive license from the University of Florida Research Foundation, Inc. (UFRF) for a patent claiming the use of any uric acid lowering agent to treat insulin resistance[32] - Obligations include an annual license fee of $1,000, reimbursement for patent maintenance costs, issuance of 180,397 common shares (160,783 issued, $24,746 obligation for remaining), milestone payments upon regulatory approvals, and royalty payments of up to 1.5% of net sales[32] - No royalties have been accrued or paid to UFRF as of June 30, 2025[32] 9. Property and equipment The carrying value of property and equipment increased from $34,721 at December 31, 2024, to $82,490 at June 30, 2025, primarily due to an $88,074 addition to the right-of-use asset from an office lease extension Property and Equipment Carrying Values | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :-------------------- | :------------------ | :-------------------- | | Cost | 323,004 | 234,930 | | Accumulated amortization | 240,514 | 200,209 | | Carrying values | 82,490 | 34,721 | - An $88,074 right-of-use asset addition was recognized for the six months ended June 30, 2025, due to an office lease extension[33] - Amortization for the six months ended June 30, 2025, was $40,305[33] 10. Accounts payable and accrued liabilities Accounts payable and accrued liabilities significantly increased from $147,205 at December 31, 2024, to $453,982 at June 30, 2025, driven by increases in both trade payables and accrued liabilities Accounts Payable and Accrued Liabilities Breakdown | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :-------------------------- | :------------------ | :-------------------- | | Trade payables | 356,405 | 84,020 | | Accrued liabilities | 97,577 | 63,185 | | Total | 453,982 | 147,205 | 11. Lease obligation The lease obligation increased from $38,785 at December 31, 2024, to $80,473 at June 30, 2025, primarily due to an $88,074 addition for an office lease extension to May 31, 2026, partially offset by lease payments Lease Obligation Details | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------------------------ | :------------------ | :-------------------- | | Balance, December 31, 2023 | 11,510 | 11,510 | | Additions | 88,074 | 96,998 | | Lease payments | (46,386) | (69,723) | | Balance, June 30, 2025 / December 31, 2024 | 80,473 | 38,785 | | Total minimum lease payments | 83,618 | 39,535 | | Less: imputed interest | (3,145) | (750) | | Total present value of minimum lease payments | 80,473 | 38,785 | - The $88,074 lease obligation addition recognized in the six months ended June 30, 2025, relates to an extension of the office lease to May 31, 2026[35] 12. Share capital and reserves Share capital and reserves experienced various changes, including new share issuances from an at-the-market offering and pre-funded warrant exercises, alongside a reclassification of derivative warrant liability. The total number of common shares outstanding increased to 3,788,246 at June 30, 2025 - The number of common shares issued increased to 3,788,246 at June 30, 2025, from 3,481,375 at December 31, 2024[37] - During the six months ended June 30, 2025, the Company issued 73,871 common shares for gross proceeds of $113,547 through an at-the-market offering[38] - 233,000 common shares were issued for the exercise of pre-funded warrants, resulting in $324,643 transferred from reserves to share capital[39] a) Authorized and issued%20Authorized%20and%20issued) The Company has unlimited common shares authorized, with 3,788,246 shares issued at June 30, 2025 - The Company has unlimited common shares authorized, with 3,788,246 shares issued at June 30, 2025 (compared to 3,481,375 at December 31, 2024)[37] b) Issuances%20Issuances) The Company issued common shares through an at-the-market offering and pre-funded warrant exercises, and previously closed non-brokered offerings - Six months ended June 30, 2025: Issued 73,871 common shares in an at-the-market offering for $113,547 gross proceeds, incurring $19,064 in issuance costs[38] - Six months ended June 30, 2025: Issued 233,000 common shares for the exercise of pre-funded warrants at US$0.00001 per share, transferring $324,643 from reserves to share capital[39] - Six months ended June 30, 2024: Closed two tranches of a non-brokered offering of 899,717 common share units for aggregate gross proceeds of $2,000,549, with proceeds allocated to derivative warrant liability ($968,000) and common shares ($1,032,549)[40][41] c) Diluted Weighted Average Number of Common Shares Outstanding%20Diluted%20Weighted%20Average%20Number%20of%20Common%20Shares%20Outstanding) The basic and diluted weighted average common shares outstanding are presented, with potential conversions excluded due to net loss Weighted Average Common Shares Outstanding | Item | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic weighted average common shares outstanding | 3,788,246 | 2,903,565 | 3,762,815 | 2,666,417 | | Diluted weighted average common shares outstanding | 3,788,246 | 2,903,565 | 3,762,815 | 2,666,417 | - Due to a net loss, the diluted loss per share calculation for the six months ended June 30, 2025, excludes any potential conversion of options and warrants that would decrease loss per share[44] d) Common Share Purchase Warrants%20Common%20Share%20Purchase%20Warrants) The Company's common share purchase warrants include various grants and exercises, with a weighted average contractual remaining life of 2.09 years Common Share Purchase Warrants Activity | Item | Number of Warrants | Weighted Average Exercise price ($) | | :------------------------------------ | :----------------- | :---------------------------------- | | Balance, December 31, 2023 | 1,125,210 | 22.31 | | Granted – February 9, 2024 | 824,767 | 3.30 | | Granted – February 23, 2024 | 74,950 | 3.30 | | Granted – October 18, 2024 | 810,810 | 2.18 | | Exercised | (5,000) | 3.30 | | Balance, June 30, 2025 and December 31, 2024 | 2,830,737 | 3.65 | - The weighted average contractual remaining life of unexercised warrants was 2.09 years at June 30, 2025, down from 2.58 years at December 31, 2024[48] - Warrants issued in 2024 include an acceleration expiry provision if the Company's shares trade above $6.50 for 10 consecutive days[47] e) Pre-Funded Warrants%20Pre-Funded%20Warrants) All pre-funded warrants were exercised during the six months ended June 30, 2025, resulting in a zero balance at period end Pre-Funded Warrants Activity | Item | Number of Warrants | Weighted Average Exercise price ($) | | :-------------------------- | :----------------- | :---------------------------------- | | Balance, December 31, 2023 | - | - | | Granted – October 18, 2024 | 490,810 | 0.00001 | | Exercised | (257,810) | 0.00001 | | Balance, December 31, 2024 | 233,000 | 0.00001 | | Exercised | (233,000) | 0.00001 | | Balance, June 30, 2025 | - | - | - All pre-funded warrants were exercised during the six months ended June 30, 2025, resulting in a zero balance at period end[50] f) Finders' and Underwriters Warrants%20Finders'%20and%20Underwriters%20Warrants) The Company holds 50,298 finders' and underwriters' warrants with a weighted average exercise price of $23.57 and a remaining life of 1.75 years Finders' and Underwriters' Warrants | Item | Number of Warrants | Weighted Average Exercise price ($) | | :------------------------------------------ | :----------------- | :---------------------------------- | | Balance, June 30, 2025 and December 31, 2024 | 50,298 | 23.57 | - The weighted average contractual remaining life of unexercised finders' and underwriters' warrants was 1.75 years at June 30, 2025, down from 2.24 years at December 31, 2024[51] g) Stock Options%20Stock%20Options) Stock options decreased to 129,761 at June 30, 2025, with a weighted average exercise price of $10.51 and a remaining life of 2.78 years Stock Option Activity | Item | Number of Options | Weighted Average Exercise price (CAD) | | :-------------------------- | :---------------- | :------------------------------------ | | Balance, December 31, 2023 | 103,922 | 16.60 | | Granted – March 4, 2024 | 39,483 | 4.50 | | Granted – April 8, 2024 | 8,000 | 5.00 | | Granted – December 18, 2024 | 13,000 | 1.75 | | Expired | (16,642) | 22.22 | | Balance, December 31, 2024 | 147,763 | 10.80 | | Expired | (18,002) | 12.86 | | Balance, June 30, 2025 | 129,761 | 10.51 | | Vested and exercisable, June 30, 2025 | 101,408 | 12.48 | - Share-based payments recorded for the six months ended June 30, 2025, were $15,914, a significant decrease from $97,165 in the prior year[56] - The weighted average contractual remaining life of unexercised options was 2.78 years at June 30, 2025, down from 3.02 years at December 31, 2024[57] h) Derivative Warrant Liability%20Derivative%20Warrant%20Liability) Derivative warrant liability decreased due to fair value adjustments, as warrants are classified as liabilities when their exercise price is in a non-functional currency or allows cashless settlement Derivative Warrant Liability Movement | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------------------------ | :------------------ | :-------------------- | | Balance at December 31, 2023 | 531,000 | 531,000 | | Warrants issued February 9, 2024 | - | 865,000 | | Warrants issued February 23, 2024 | - | 103,000 | | Warrants exercised | - | (5,244) | | Fair value adjustment | (395,000) | 79,244 | | Balance at June 30, 2024 | - | 1,573,000 | | Reclassified to reserves | - | (123,651) | | Fair value and other adjustments | - | (877,349) | | Balance at June 30, 2025 / December 31, 2024 | 177,000 | 572,000 | - Warrants are recorded as derivative financial liabilities because their exercise price is denominated in a currency other than the functional currency (USD) or they allow for cashless settlement[59][61] - The fair value adjustment for the six months ended June 30, 2025, was $(395,000), contributing to the decrease in liability[63] 13. Related party transactions Total compensation to directors and officers decreased to $481,401 for the six months ended June 30, 2025, from $590,198 in the prior year, with specific amounts paid to the CEO, CFO, CMO, CBO, and other directors. Various amounts were also payable to related parties at period end Related Party Compensation | Item | Six months ended June 30, 2025 ($) | Six months ended June 30, 2024 ($) | | :-------------------------- | :--------------------------------- | :--------------------------------- | | Directors and officers compensation | 481,401 | 590,198 | | Wages and benefits to CEO | 164,394 | 212,711 | | Fees to CFO | 79,895 | 75,584 | | R&D fees to CMO | 48,000 | 62,445 | | Consulting fees to CBO | 75,000 | 82,500 | | Directors' fees | 105,154 | 85,532 | - As at June 30, 2025, $26,686 was payable to directors, $28,174 to the CFO, $16,000 to the CMO, and $25,000 to the CBO[67] 14. Financial instruments and risk management The Company's financial instruments include cash, accounts receivable, accounts payable, lease obligation, and derivative warrant liability. Fair values of short-term instruments approximate carrying values, while derivative warrant liability is classified as Level 3 fair value. The Board monitors foreign currency, interest rate, market, credit, and liquidity risks, with no changes in risk management policies since December 31, 2024 - The Company's financial instruments consist of cash, accounts receivable, accounts payable and accrued liabilities, lease obligation, and derivative warrant liability[68] - Derivative warrant liability is carried at fair value and is classified within Level 3 of the fair value hierarchy[68] - The Board of Directors reviews and monitors foreign currency risk, interest rate risk, market risk, credit risk, and liquidity risk, with no changes in risk management policies since December 31, 2024[69] 15. Capital management The Company manages its capital (shareholders' equity) to ensure sufficient liquidity for research and development, general and administrative expenses, intellectual property protection, and capital expenditures, aiming to continue as a going concern and optimize shareholder returns. There were no changes in capital management objectives during the six months ended June 30, 2025 - The Company defines capital as shareholders' equity and manages its capital structure to fund research and development, sustain business development, ensure going concern, and optimize shareholder returns[70] - The objective is to ensure sufficient liquidity for R&D activities, general and administrative expenses, intellectual property protection, and capital expenditures[71] - There were no changes in capital management during the six months ended June 30, 2025, and the Company is not exposed to external regulatory capital requirements[71] 16. Commitments The Company has long-term commitments not recognized as liabilities, including a $321,000 annual employment agreement for the CEO and $121,793 in payments related to clinical trial, manufacturing, and other business activities expected over the next two years Contractual Commitments | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :-------------------------- | :------------------ | :-------------------- | | Management services – officers | 321,000 | 321,000 | | Clinical trial, manufacturing, and other activities | 121,793 | 323,000 | - The President, CEO, and a director has a long-term employment agreement entitling him to an annual salary of $321,000, with a 12-month termination clause[72] 17. Segmented information The Company operates as a single reportable operating segment focused on developing and commercializing therapies for hyperuricemia-related diseases. All long-term assets of the Company are located in Canada - The Company operates in one reportable operating segment: the development and commercialization of therapies to treat hyperuricemia related diseases[74] - All long-term assets of the Company are located in Canada[74] 18. Subsequent events After June 30, 2025, the Company completed two non-brokered private placements in July and August 2025, raising aggregate gross proceeds of $1,039,500 through the issuance of units (common shares and warrants). Deferred share issue costs of $92,594 were incurred in connection with these financings as of June 30, 2025 - On July 22, 2025, the Company closed a private placement of 1,267,123 units at $0.73 per unit, raising $925,000[75] - On August 8, 2025, the Company closed another private placement of 156,849 units at $0.73 per unit, raising $114,500[76] - Each unit in these offerings consists of one common share and one common share purchase warrant, with warrants exercisable at $1.20 for sixty months, subject to an acceleration clause if the Nasdaq closing price exceeds $2.00 for ten consecutive trading days[75][76] - As of June 30, 2025, the Company had incurred $92,594 of deferred share issue costs in connection with these financings[77]