Acasti Pharma(US:ACST)2021-02-08 16:00Financial Performance - The net loss for the three months ended December 31, 2020, was $3,220, or $0.03 per share, a decrease from a net loss of $12,123, or $0.14 per share, for the same period in 2019[112]. - For the nine months ended December 31, 2020, the net loss was $14,032, or $0.15 per share, down from $42,128, or $0.51 per share, for the same period in 2019[113]. - The company reported a net financial income of $87 for the nine months ended December 31, 2020, compared to net financial expenses of $21,721 for the same period in 2019[114]. - The total shareholders' equity increased to $25.7 million as of December 31, 2020, compared to a deficit of $4.29 million in the same period of 2019[110]. Assets and Liabilities - Total assets as of December 31, 2020, were $30.3 million, with cash and cash equivalents totaling $27.9 million[109]. - As of December 31, 2020, total liabilities amounted to $4,588, with $2,248 due within one year[151]. - The derivative warrant liability for the remaining 6,593,750 warrants totaled $1,228, reflecting a fair value decrease from $3,323 at inception[147]. - Other assets held for sale, including krill oil, are valued at $712, with equipment valued at $376, totaling $1,088[144]. Cash Flow and Financing - The company raised net proceeds of $24.8 million under the ATM program during the nine months ended December 31, 2020[109]. - Total cash and cash equivalents as of December 31, 2020, amounted to $26,546, reflecting a net increase of 34.3% compared to $19,767 at December 31, 2019[130]. - Financing activities provided cash totaling $19,745 during the three months ended December 31, 2020, compared to $7,117 in the same period of 2019, representing an increase of 177.5%[133]. Expenses - Research and development expenses decreased by $3,720 for the nine months ended December 31, 2020, compared to $14,056 for the same period in 2019[111]. - Research and development expenses for the three months ended December 31, 2020, totaled $620, a significant decrease of 80.5% from $3,186 for the same period in 2019[120]. - General and administrative expenses decreased to $931 for the three months ended December 31, 2020, down 22% from $1,193 in the same period of 2019[121]. - Sales and marketing expenses were $488 for the three months ended December 31, 2020, a decrease of 13% from $561 for the same period in 2019[121]. Strategic Decisions - The company engaged Oppenheimer & Co. Inc. to assist in exploring strategic alternatives to enhance shareholder value[102]. - The company initiated a plan to reduce personnel and expenses in September 2020, discontinuing substantially all commercialization and R&D activities[103]. - The company will not file a New Drug Application (NDA) for its lead product candidate, CaPre, due to disappointing results from the TRILOGY Phase 3 trials[102]. Impairments and Risks - An impairment loss of $3,706 was recognized for intangible assets, representing the totality of the intangible assets' net book value prior to the impairment trigger[142]. - Equipment impairment losses totaled $1,584, primarily due to the failed Phase 3 clinical trials[146]. - The company recognized a risk of loss on the krill oil product due to uncertainty regarding recoverability[145]. Currency and Interest Rate Risks - The company has exposure to interest rate risk, with short-term fixed interest rate investments that may be affected by market rate fluctuations[171]. - Liquidity risk is managed through continuous monitoring of actual and projected cash flows, with the Board of Directors reviewing operating budgets[175]. - The company incurred expenses in U.S. dollars and Euros, with no financial hedging required, exposing it to foreign currency risk[166]. - The average exchange rate for CAD per Euro was 1.5459 for 2020, compared to 1.5013 for 2019, reflecting a depreciation of the Canadian dollar against the Euro[169]. Future Accounting Changes - Future accounting changes include ASU 2016-13, effective after December 15, 2022, which will impact the reporting of credit losses[177]. - Management has adopted ASU 2018-15 regarding internal-use software, but it did not impact reported amounts as of December 31, 2020[178].