Immunoprecise(IPA) - 2026 Q1 - Quarterly Report

Revenue and Profitability - Revenue for the three months ended July 31, 2025, was CAD 3.161 million, representing a 27.8% increase from CAD 2.473 million in the same period of 2024[5] - Gross profit for the same period was CAD 1.527 million, up from CAD 1.010 million, indicating a gross margin improvement[5] - For the three months ended July 31, 2025, revenue from discontinued operations was CAD 4,480,000, an increase of 60.7% compared to CAD 2,790,000 in the same period of 2024[26] - Gross profit for discontinued operations was CAD 2,504,000, representing a gross margin of 55.8%, up from CAD 1,346,000 in 2024[26] - The net income from discontinued operations was CAD 1,130,000, compared to CAD 213,000 in the prior year, reflecting a significant increase of 431.4%[26] Financial Position - The company reported cash on hand of CAD 5.024 million as of July 31, 2025, down from CAD 10.791 million at the beginning of the period[10] - Total assets decreased to CAD 40.748 million from CAD 44.441 million, primarily due to a reduction in cash and inventory[3] - The accumulated deficit increased to CAD 131.753 million as of July 31, 2025, compared to CAD 128.794 million at the end of April 2025[3] - As of July 31, 2025, the total assets held for sale from the divestiture of IPA Europe B.V. amounted to CAD 27,538,000, while total liabilities were CAD 12,229,000, resulting in net assets held for sale of CAD 15,309,000[24] Expenses and Losses - Net loss for the period decreased to CAD 2.959 million from CAD 3.999 million year-over-year, reflecting a 26.1% reduction in losses[5] - Research and development expenses for the quarter were CAD 1.049 million, down from CAD 1.489 million in the prior year[5] - The company reported a total of CAD 1,119,000 in expenses for the three months ended July 31, 2025, compared to CAD 1,245,000 in the same period of 2024, indicating a decrease of 10.1%[26] - Employee benefits expenses totaled $2.276 million for the three months ended July 31, 2025, a decrease of 3.6% from $2.362 million in 2024[55] Shareholder and Equity Information - The weighted average number of shares outstanding increased to 46,154,118 from 27,132,355, reflecting recent equity financing activities[5] - During the year ended April 30, 2025, the company issued 13,315,850 common shares under the ATM Facility, generating net proceeds of $12.2 million[47] - The balance of stock options outstanding as of July 31, 2025, is 1,884,367, with an average exercise price of $5.66 and a remaining average life of 4.22 years[50] - The company established an ATM Facility allowing for the sale of common shares with an aggregate gross sales price of up to U.S.$8.8 million[46] Cash Flow and Lease Obligations - Total cash outflow for leases during the three months ended July 31, 2025, was $0.3 million, a decrease from $0.4 million in 2024[41] - The total minimum lease payments amount to $4.744 million, with a present value of $3.724 million after deducting imputed interest of $1.020 million[42] - The balance of right-of-use assets as of July 31, 2025, is $4.533 million, down from $17.043 million as of April 30, 2025[43] - The company has elected not to recognize lease liabilities for leases with an expected term of 12 months or less, resulting in lease payments of $131,000 for the three months ended July 31, 2025[43] Strategic Developments - The company completed the sale of IPA Europe B.V. for a total enterprise value of $12 million USD, generating $11.7 million USD in net proceeds[66] - The company unified its subsidiaries under the brand MindWalk and changed its Nasdaq ticker symbol to HYFT[69] - The company has a commitment related to the acquisition of MindWalk BV, with contingent earnout payments based on 20% of adjusted EBITDA, capped at €12.0 million over a 7-year period[58] - As of July 31, 2025, the company has not incurred any related earnout payments, with an unpaid commitment of €12.0 million[59] Accounting and Compliance - The company adopted amendments to IAS 1 regarding the classification of liabilities, effective for reporting periods beginning on or after January 1, 2024, with no impact on the classification of liabilities noted[28] - The company recorded €0.1 million in grant income during the three months ended July 31, 2025, related to funding received from VLAIO[60]