Financial Performance - Total current assets increased to $9,781,412 as of September 30, 2025, compared to $5,378,307 as of December 31, 2024, representing an 81.5% increase[14] - Total liabilities rose significantly to $10,782,551 as of September 30, 2025, from $2,512,174 as of December 31, 2024, marking a 329.5% increase[14] - Operating expenses for the three months ended September 30, 2025, totaled $15,426,340, a substantial increase from $2,334,261 in the same period of 2024, reflecting a 561.5% rise[15] - The net loss for the period attributable to common shareholders was $20,935,830 for the three months ended September 30, 2025, compared to $2,278,747 for the same period in 2024, indicating a 818.5% increase in losses[15] - The company reported a comprehensive loss attributable to common shareholders of $20,925,002 for the three months ended September 30, 2025, compared to $2,278,747 in 2024, representing a 818.4% increase[15] - The net loss for the period ending September 30, 2024, was $2,278,747, contributing to an accumulated deficit of $(25,367,351)[19] - For the nine months ended September 30, 2025, the net loss was $27,259,804, compared to a net loss of $7,618,964 for the same period in 2024, representing an increase in loss of approximately 257%[22] - The company reported an accumulated deficit of $56,163,630 as of September 30, 2025, which includes $43,779,386 accumulated by the company on a consolidated basis[128] - The company expects to incur significant operating losses for the foreseeable future and may never become profitable[126] Shareholder Equity and Capital Raising - Shareholders' equity attributable to Medicus Pharma Ltd. decreased to $(910,126) as of September 30, 2025, from $3,134,704 as of December 31, 2024, indicating a significant decline[14] - The company issued 1,490,000 common shares, raising $2,076,507 in connection with Regulation A, net of issuance costs of $483,020[17] - The company raised $9,790,015 from the issuance of common shares and warrants during the nine months ended September 30, 2025[22] - The Company completed a Regulation A Offering of 1,490,000 units at $2.80 per unit on March 10, 2025, with proceeds of $4,126,639 from the exercise of warrants[129] - The company closed its public offering on June 2, 2025, with gross proceeds of $7.0 million from the issuance of 2,260,000 units at a price of $3.10 per unit[130] - The Company sold a total of 710,030 common shares to Yorkville under the SEPA for proceeds of approximately $1.61 million, with share prices ranging from $2.19 to $2.35[86] - The Company has the option to sell up to $15,000,000 of common shares to the Investor under the SEPA over a 36-month period[134] Research and Development - The company incurred $8,717,475 in in-process research and development (IPR&D) expenses for Teverelix during the three months ended September 30, 2025, with no comparable expenses in 2024[15] - Research and development expenses increased by $1,120,638 and $2,967,881 for the three and nine months ended September 30, 2025, primarily due to increased clinical trial activity for SKNJCT-003 and SKNJCT-004[120] - The Company is currently conducting a Phase 2 clinical study (SKNJCT-003) for a novel treatment with interim analysis showing more than 60% clinical clearance[95] - The Company received approval from the UAE Department of Health to commence a clinical study (SKNJCT-004) for non-invasive treatment of BCC, randomizing 36 patients across four clinical sites[96] - The Company recognized all costs allocated to IPR&D as research and development expenses, as these assets had no alternative future use[82] Cash Flow and Liquidity - Cash and cash equivalents rose to $8,662,091 as of September 30, 2025, compared to $4,164,323 as of December 31, 2024, reflecting a 107.5% increase[14] - Net cash used in operating activities for the nine months ended September 30, 2025, was $16,167,654, compared to $7,055,679 for the same period in 2024, indicating a 129% increase in cash outflow[22] - Cash provided by financing activities for the nine months ended September 30, 2025, was $25,286,315, an increase of $14,643,815 from $10,642,500 in 2024[141] - Cash used in operating activities for the nine months ended September 30, 2025, was $16,167,654, an increase of $9,111,975 compared to $7,055,679 for the same period in 2024[139] - The cash balance at the end of the period was $8,662,091, an increase of $3,355,932 from $5,306,159 at the end of the same period in 2024[139] Strategic Initiatives - The company anticipates future growth driven by new product launches and market expansion strategies[18] - The acquisition strategy remains a key focus, with ongoing evaluations of potential targets to enhance market position[18] - The company plans to invest in new technologies to enhance product offerings and customer experience[18] - The company plans to expand its market presence through strategic partnerships and acquisitions[10.3] - The Company completed the acquisition of 98.6% of Antev for approximately $2.97 million in cash and shares, expanding its drug development pipeline[99] - The Company completed the acquisition of Antev, resulting in a net cash payment of $4,619,152, including transaction costs[22] Operational Efficiency - The company aims to improve operational efficiency, targeting a reduction in costs by 8.52% in the upcoming fiscal year[18] - The Company plans to implement measures to improve internal controls over financial reporting to address identified material weaknesses[160] Compliance and Governance - The principal executive and financial officers certified compliance with the Sarbanes-Oxley Act, ensuring financial integrity[31.1][31.2] - Medicus Pharma Ltd. is committed to transparency and will provide unredacted copies of certain documents upon SEC request[172] - The bylaws of Medicus Pharma Ltd. were updated as of August 11, 2025, reflecting current operational standards[3.1] - The company executed a Securities Purchase Agreement with YA II PN, Ltd. on September 17, 2025[10.2] - The Company recognized stock-based compensation expenses of $1,082,482 for the nine months ended September 30, 2025, compared to $621,395 for the same period in 2024[63]
Medicus Pharma Ltd(MDCX) - 2025 Q3 - Quarterly Report