Cardiol Therapeutics(CRDL) - 2025 Q3 - Quarterly Report

Financial Performance - As of September 30, 2025, Cardiol Therapeutics Inc. reported total assets of CAD 12,947,801, a decrease of 59.5% from CAD 31,863,751 as of December 31, 2024[2] - The company’s cash and cash equivalents decreased to CAD 11,622,408 from CAD 30,580,029, representing a decline of 61.9%[2] - For the nine months ended September 30, 2025, the net loss was CAD 26,606,305, compared to a net loss of CAD 28,498,989 for the same period in 2024, indicating a 6.6% improvement[4] - Operating expenses for the nine months ended September 30, 2025, totaled CAD 26,285,321, down from CAD 30,287,227 in 2024, reflecting a decrease of 13.2%[4] - The basic and diluted net loss per share for the nine months ended September 30, 2025, was CAD 0.32, compared to CAD 0.42 for the same period in 2024[4] - The company’s total equity as of September 30, 2025, was CAD 9,560,875, a significant decrease of 61.3% from CAD 24,728,483 as of December 31, 2024[2] Cash Flow and Expenses - Cash used in operating activities for the nine months ended September 30, 2025, was CAD 18,629,352, slightly lower than CAD 19,467,574 in 2024[6] - Research and development expenses increased to CAD 11,275,671 for the nine months ended September 30, 2025, from CAD 9,783,261 in 2024, marking a rise of 15.3%[4] - Interest income for the nine months ended September 30, 2025, was CAD 551,192, down from CAD 886,567 in 2024, a decrease of 37.8%[6] - The total expenses related to share-based compensation for the nine months ended September 30, 2025, amounted to $7,686,761, a decrease from $11,130,090 for the same period in 2024[24] Share Capital and Equity - The company’s share capital increased to CAD 187,362,629 as of September 30, 2025, from CAD 179,335,421 at the end of 2024, an increase of 4.5%[2] - The number of common shares issued increased to 87,455,722 by September 30, 2025, from 65,352,279 on December 31, 2023, reflecting an increase of 33.9%[22] - The balance of Performance Share Units (PSUs) as of September 30, 2025, is 679,755, down from 2,000,000 on December 31, 2023, indicating significant redemption activity[29] - The balance of Restricted Share Units (RSUs) as of September 30, 2025, was 4,728,056, with 2,915,818 vested[36] Assets and Liabilities - As of September 30, 2025, the total carrying value of property and equipment is $989,647, a decrease from $993,816 on December 31, 2023[18] - The accumulated depreciation increased to $848,666 by September 30, 2025, from $656,758 on December 31, 2023, reflecting a depreciation expense of $143,402 for the year ended December 31, 2024[18] - The lease liability decreased to $134,199 by September 30, 2025, from $174,340 on December 31, 2023, with repayments totaling $41,532 in both 2024 and 2025[19] - The carrying value of the right-of-use asset decreased to $32,598 by September 30, 2025, from $80,586 on December 31, 2024, reflecting the impact of lease repayments and depreciation[18] Management and Commitments - Salaries and benefits for key management personnel for the nine months ended September 30, 2025, totaled $2,446,705[43] - The company has committed lease payments totaling approximately $330,600 for the years 2025 to 2028[39] - The company’s total commitments for contract research services amount to $1,361,101 from 2025 to 2029[41] Subsequent Events - Subsequent to September 30, 2025, 2,621,000 PSUs were issued and 983,592 PSUs were redeemed[34][35] - Subsequent to September 30, 2025, the company completed a financing of US$11.4 million through the issuance of 11,425,000 common share units at USD$1.00 per unit[44] Stock Options and Derivatives - The fair value of stock options issued during the nine months ended September 30, 2025, was estimated at $0.79, compared to $1.79 for the same period in 2024[28] - The Corporation issued 1,560,000 stock options during the year ended December 31, 2024, with a weighted average exercise price of $1.65[25] - The derivative liability related to warrants decreased by $1,352,085 during the three months ended September 30, 2024, and all 8,175,000 warrants expired unexercised during 2024[20] Quarterly Performance - The basic and diluted loss per share for the three months ended September 30, 2025, was calculated based on a loss of $9,964,281, with a weighted average of 84,727,401 shares outstanding[38] - Total operating expenses for the three months ended September 30, 2025, included non-cash share-based compensation of $3,306,682 in general and administration expenses and $692,923 in research and development expenses[42]