Acasti Pharma(US:ACST)2022-06-20 16:00Financial Performance - The net loss for the year ended March 31, 2022, was $9,819, a decrease of $9,859 from the net loss of $19,678 for the year ended March 31, 2021, resulting in a loss per share of $0.27 compared to $1.33 [273]. - The company did not generate any revenue for the year ended March 31, 2022, compared to $196 for the year ended March 31, 2021 [272]. - Operating activities used cash of $17,234 for the year ended March 31, 2022, compared to $14,319 for the year ended March 31, 2021 [290]. - The company did not engage in any financing activities during the year ended March 31, 2022, compared to cash generated of $59,490 from share sales in the previous year [292]. Assets and Equity - Total assets increased to $128,620 as of March 31, 2022, from $62,458 as of March 31, 2021, reflecting an increase of $66,162 [270]. - Total shareholders' equity increased to $108,270 as of March 31, 2022, from $55,660 as of March 31, 2021, an increase of $52,610 [270]. - Cash and cash equivalents and short-term investments totaled $43.7 million as of March 31, 2022 [269]. - Working capital decreased to $42,271 as of March 31, 2022, from $60,793 as of March 31, 2021, a decrease of $18,522 [270]. Expenses - Research and development expenses for the year ended March 31, 2022, totaled $5,559, an increase of $1,386 from $4,173 for the year ended March 31, 2021 [277]. - General and administrative expenses totaled $9,263 for the year ended March 31, 2022, an increase of $3,742 from $5,521 for the year ended March 31, 2021 [282]. - Total third-party research and development expenses before salaries and benefits for the year ended March 31, 2022, amounted to $3,095, compared to $1,445 for the year ended March 31, 2021, resulting in an increase of $1,650 [278]. - Sales and marketing expenses decreased to $518 for the year ended March 31, 2022, from $1,142 for the year ended March 31, 2021, reflecting a decrease of $624 [285]. - Acquisition-related expenses totaled $3.2 million for the year ended March 31, 2022, included in general and administrative expenses [307]. Cash Flow and Liquidity - Cash and cash equivalents totaled $30,339 as of March 31, 2022, a net decrease of $20,603 from $50,942 at March 31, 2021 [289]. - The company manages liquidity risk by monitoring actual and projected cash flows and through the management of its capital structure and financial leverage [338]. - The company continuously monitors its operating budgets and reviews material transactions outside the normal course of business to manage liquidity risk [338]. Acquisitions and Goodwill - The acquisition of Grace Therapeutics was completed on August 27, 2021, resulting in the issuance of 18,241,233 common shares valued at $60,824 [300][301]. - Intangible assets related to the acquisition of Grace amounted to $69,810, primarily for in-process research and development [303]. - Goodwill of $12,964 was recognized as the excess of the consideration transferred over the net assets acquired [304]. Derivative Liabilities and Commitments - The fair value of derivative warrant liabilities for the remaining 824,218 warrants was $10 as of March 31, 2022, down from an initial value of $3,323 at inception [315]. - As of March 31, 2022, total contractual liabilities amounted to $3,461, with $3,260 due within one year [317]. - The company has a remaining commitment of $2.8 million under the RKO supply agreement for raw krill oil, with no planned use for the product [321]. Currency and Interest Rate Risks - A 5% strengthening of the U.S. dollar would result in an increase in net loss by CAD$3,129, compared to CAD$4,048 for March 31, 2021 [337]. - Interest rate risk exposure as of March 31, 2022, includes cash and cash equivalents and short-term fixed interest rate investments [337]. - The company’s capacity to reinvest short-term amounts will be impacted by variations in short-term fixed interest rates available on the market [337]. Other Financial Information - The company has assessed recent accounting pronouncements and concluded that they are not expected to have a material effect on consolidated financial statements [338]. - There were no off-balance sheet arrangements that could materially affect the company's financial condition as of the report date [322]. - The average CAD$ per US$ was 1.2536 for March 2022 reporting, compared to 1.3212 for March 2021 [336]. - The average CAD$ per Euro was 1.4569 for March 2022 reporting, compared to 1.5409 for March 2021 [336].