Anavex Life Sciences (US:AVXL)2025-11-25 21:31Financial Performance - Net loss for fiscal 2025 was $46.4 million, or $0.54 per share, compared to a net loss of approximately $43.0 million, or $0.52 per share for fiscal 2024[350]. - Cash and cash equivalents decreased to $102.6 million at September 30, 2025, down from $132.2 million at September 30, 2024[351]. - Cash flows used in operating activities increased by $8.2 million to $(39.0) million in fiscal 2025, primarily due to a decrease in accounts payable[354]. - Net other income for fiscal 2025 was $5.0 million, down from $9.9 million in fiscal 2024, primarily due to a $2.6 million decrease in interest income[348]. Operating Expenses - Operating expenses for fiscal 2025 decreased to $51.4 million, down from $52.9 million in fiscal 2024, primarily due to reduced research and development expenses[345]. - General and administrative expenses rose to $13.8 million in fiscal 2025, compared to $11.0 million in fiscal 2024, largely due to a $1.7 million increase in legal fees[347]. - The company recorded $0.6 million in research and development incentive income for fiscal 2025, a decrease from $2.3 million in fiscal 2024[349]. Research and Development - Total research and development costs for fiscal 2025 were $37.6 million, a decrease of approximately 10.7% from $41.8 million in fiscal 2024[345]. - Research and development expenses include costs for preclinical studies, clinical trials, manufacturing, and employee compensation, with milestone payments expensed upon achievement[373]. - Significant judgments and estimates are made in determining accrued balances and expenses related to clinical trials and external research organizations[374]. Financing and Agreements - The company entered into a Sales Agreement allowing for the sale of up to $150 million in common stock, with $140.4 million remaining unused as of September 30, 2025[361]. - The company has a $150 million Purchase Agreement with Lincoln Park, with $110.8 million remaining unused as of September 30, 2025[368]. Investments and Assets - The average amount invested in interest-bearing securities for the year ended September 30, 2025, was $109.3 million, with a return rate of 4.28%[381]. - At September 30, 2025, the company held net assets of $1.9 million (AUD $2.9 million) in Australian dollars, with a hypothetical 10% change in exchange rates affecting reported net assets by +/- $0.19 million[384]. - A hypothetical 100 basis point change in interest rates would impact net loss by approximately $1.1 million, with no principal loss experienced on investments to date[381]. Foreign Exchange and Inflation - The company does not utilize forward exchange contracts for foreign transactions, settling on a spot exchange basis[382]. - A hypothetical 10% change in foreign exchange rates would not have a material impact on the consolidated financial statements for the year ended September 30, 2025[383]. - Inflation has not had a material impact on the company's results of operations during the periods presented[385]. Other Expenses - The company incurs expenses related to the acquisition of intellectual property, which are expensed due to uncertainties in commercialization[375]. - Share-based compensation expenses are recognized based on the fair value method, with adjustments for actual forfeitures of unvested awards[376][377].