Edesa Biotech(EDSA) - 2026 Q1 - Quarterly Report

Financial Performance - Net loss was $2.2 million, or $0.28 per common share, for the three months ended December 31, 2025, compared to a net loss of $1.6 million, or $0.48 per common share for the same period in 2024[98]. - Total operating expenses increased by $0.4 million to $2.3 million for the three months ended December 31, 2025, compared to $1.9 million for the same period last year[95]. - The company had an accumulated deficit of $68.2 million and working capital of $12.0 million, including $12.1 million in cash and cash equivalents as of December 31, 2025[110]. - The company expects to continue incurring substantial operating losses as it develops product candidates and seeks marketing approval[111]. Cash Flow - Net cash used in operating activities was $2.1 million for the three months ended December 31, 2025, compared to $1.5 million for the same period in 2024[101]. - Net cash provided by financing activities was $3.4 million for the three months ended December 31, 2025, compared to $2.1 million for the same period in 2024[114]. - Cash and cash equivalents at the end of the quarter were $12.1 million, compared to $10.8 million as of September 30, 2025[101]. Research and Development - Research and development (R&D) expenses increased by $0.1 million to $1.1 million for the three months ended December 31, 2025, primarily due to increased expenses for manufacturing-related activities[95]. - R&D expenses increased to $1.1 million for the three months ended December 31, 2025, compared to $1.0 million for the same period in 2024, primarily due to manufacturing-related activities[116]. - EB05, a drug candidate for Acute Respiratory Distress Syndrome, met primary and secondary endpoints in a Phase 3 clinical study, showing clinically meaningful improvement in survival and recovery[92]. - EB06, an anti-CXCL10 monoclonal antibody candidate, is in discussions for a Phase 2 proof of concept study in patients with moderate-to-severe nonsegmental vitiligo, with enrollment anticipated by midyear 2026[90]. - The company is pursuing additional uses for paridiprubart in chronic diseases and is eligible for reimbursement of certain development expenses from the Government of Canada[92]. Financing Activities - The company sold 1,177,568 common shares for net proceeds of approximately $3.4 million under the At The Market Offering Agreement during the three months ended December 31, 2025[93]. - The company sold an aggregate of 834 Series B-1 Preferred Shares and 3,468,746 common shares for gross proceeds of approximately $15.0 million in a private placement[102]. - The company filed a shelf registration statement allowing for the offer and sale of up to $150.0 million of securities, effective September 9, 2025[103]. - The company plans to seek additional financing through equity sales, government grants, and potential strategic transactions to fund operations and product development[111]. Administrative Expenses - General and administrative (G&A) expenses increased by $0.3 million to $1.2 million for the three months ended December 31, 2025, primarily due to an increase in noncash share-based compensation[97]. - The company recorded grant income of $0.1 million for the three months ended December 31, 2025, a decrease from $0.3 million in the same period last year[105]. Off-Balance Sheet Arrangements - The company has no off-balance sheet arrangements that could materially affect its financial condition[117].