XORTX Therapeutics (US:XRTX)2025-11-17 21:17Financial Performance - Total assets decreased to $2.81 million as of September 30, 2025, down from $4.09 million at the end of 2024, representing a decline of approximately 31%[2] - Cash reserves fell to $1.19 million from $2.47 million, a decrease of 52%[2] - Net loss for the nine months ended September 30, 2025, was $2.07 million, compared to a loss of $3.44 million for the same period in 2024, reflecting a 40% improvement[3] - The company reported a basic and diluted loss per common share of $0.50 for the nine months ended September 30, 2025, compared to $1.25 in 2024, a reduction of 60%[3] - Cash used in operating activities for the nine months ended September 30, 2025, was $2.07 million, an improvement from $2.79 million in 2024, reflecting a 26% reduction[6] Shareholder Equity and Liabilities - Shareholders' equity decreased to $1.97 million as of September 30, 2025, down from $3.34 million at the end of 2024, a decline of 41%[2] - The company’s total liabilities increased to $837,408 as of September 30, 2025, from $757,990 at the end of 2024, an increase of 10%[2] - The company reported trade payables of $480,068 and accrued liabilities of $197,246 as of September 30, 2025, compared to $84,020 and $63,185 respectively as of December 31, 2024, indicating a significant increase in liabilities[34] Research and Development - Research and development expenses increased to $520,071 for the nine months ended September 30, 2025, up from $176,067 in 2024, indicating a growth of 195%[3] - The company is focused on developing therapies for gout and progressive kidney disease, with ongoing clinical studies and a need for additional funding to support research and development activities[10] - The company has not capitalized any development costs as of September 30, 2025, despite ongoing research and development efforts[21] Equity and Financing Activities - Proceeds from the issuance of equity instruments amounted to $1.15 million for the nine months ended September 30, 2025, compared to $2.00 million in 2024, a decrease of 43%[6] - The company entered into an agreement with Prevail InfoWorks Inc., paying $1,200,000 for future regulatory and clinical trial programs, with units issued valued at CAD $14.76 each[28] - The company raised gross proceeds of $113,547 from the issuance of 73,871 common shares on January 15, 2025, incurring issuance costs of $19,064[39] - A non-brokered private placement on July 22, 2025, generated $925,000 from the sale of 1,267,123 units at $0.73 per unit, with additional cash issuance costs of $407,702[41] - The company closed a registered direct offering on October 29, 2025, raising gross proceeds of $1,102,488 through the sale of 572,470 common shares and 1,177,530 pre-funded warrants[78] Assets and Intangible Assets - Total intangible assets increased from $375,727 as of December 31, 2024 to $406,423 as of September 30, 2025, with carrying values rising from $183,108 to $193,997[29] - The company’s accumulated amortization for intangible assets increased from $192,619 as of December 31, 2024 to $212,426 as of September 30, 2025[29] - The company has recognized a right-of-use asset of $299,660 and equipment valued at $23,344 as of September 30, 2025, reflecting ongoing investments in property and equipment[33] Stock Options and Warrants - The company had a total of 4,254,709 warrants outstanding as of September 30, 2025, with a weighted average exercise price of $2.82[48] - The exercise prices of outstanding stock options range from CAD $1.75 to CAD $22.86, with a total of 129,761 options outstanding as of September 30, 2025[12] - The diluted weighted average number of common shares outstanding increased to 4,856,493 for the three months ended September 30, 2025, compared to 2,903,565 for the same period in 2024[47] - The company issued warrants with an estimated fair value of $nil during the nine months ended September 30, 2025, compared to $968,000 in 2024, indicating a significant decrease in the value of these financial instruments[63] Management and Compensation - The company incurred total management compensation of $719,914 for the nine months ended September 30, 2025, a decrease from $818,009 in the same period of 2024[67] - The company has committed to payments totaling $228,348 related to clinical trials and manufacturing activities expected to occur over the next two years, down from $323,000 at December 31, 2024[74] Risk Management - The company has no changes in risk management policies since December 31, 2024, and continues to monitor various financial risks including foreign currency and liquidity risks[70]