BriaCell(US:BCTX)2024-03-18 21:15Financial Performance - BriaCell reported total operating expenses of $9,829,446 for the three months ended January 31, 2024, compared to $4,486,323 for the same period in 2023, representing a 119% increase [86]. - The net loss for the three-month period ended January 31, 2024, was $11,294,603, a slight decrease from the loss of $11,881,762 reported in the same period in 2023 [94]. - The net loss for the period ended January 31, 2024, was $5,375,038, a reduction from $12,988,303 in the same period of 2023, indicating a 59% improvement [104]. - The company reported net financial income of $12,975,781 for the six-month period ending January 31, 2024, a significant turnaround from a loss of $3,098,829 in 2023 [102]. Research and Development - Research and development expenses increased to $8,257,455 in Q1 2024 from $3,053,357 in Q1 2023, primarily due to expanded clinical trials for Bria-IMT™ [86]. - Research and development expenses for the six-month period ending January 31, 2024, totaled $15,114,712, a significant increase from $6,308,572 in the same period of 2023, reflecting a 139% rise [97]. - Clinical trial costs surged from $1,288,577 in Q1 2023 to $6,200,980 in Q1 2024, reflecting higher patient enrollment and longer trial durations [91]. - Clinical trial expenses surged to $11,598,418 in 2024 from $3,330,516 in 2023, marking a 248% increase due to extended patient participation and higher setup costs for pivotal studies [100]. - BriaCell initiated its pivotal Phase 3 study of Bria-IMT™ on October 3, 2023, aiming to enroll 177 patients in both the treatment and control arms [84]. - The FDA has granted Fast Track Designation to Bria-IMT™, which could expedite the review process for this immunotherapy [79]. - The company expects ongoing communication with the FDA under its Fast Track status during the pivotal Phase 3 study [84]. Expenses - General and administrative expenses rose to $1,571,991 in Q1 2024 from $1,432,966 in Q1 2023, driven by increased shareholder communication costs [92]. - General and administrative expenses decreased to $3,217,762 in 2024 from $3,580,902 in 2023, primarily due to reduced non-cash share-based compensation expenses [101]. - Financial expenses, net, decreased significantly from $7,395,439 in Q1 2023 to $1,486,119 in Q1 2024, largely due to a reduction in warrant liability losses [93]. Assets and Working Capital - As of January 31, 2024, total assets were $12,231,047, down from $27,163,577 as of July 31, 2023, reflecting a 55% decrease [105]. - The company has a positive working capital balance of $7,817,634 as of January 31, 2024, compared to $25,147,050 on July 31, 2023, indicating a 69% decline [107]. - Cash used in operating activities for the six-month period ending January 31, 2024, was $15,006,564, compared to $7,494,122 in the same period of 2023, representing a 100% increase [109]. - The accumulated deficit as of January 31, 2024, was $85,945,291, up from $80,652,231 as of July 31, 2023, showing a 6% increase [107]. Capital and Risk Management - The company plans to finance its research and development activities through existing and future working capital resources while evaluating additional sources of capital [106]. - The Company does not have any interest-bearing debt, indicating minimal exposure to interest rate risk [114]. - The Company is exposed to foreign exchange risk due to transactions in Canadian Dollars, but a 5% fluctuation in the Canadian dollar against the US dollar would not materially affect total loss [115]. - The fair values of cash and cash equivalents, trade payables, and accrued expenses approximate their carrying values due to their short terms to maturity [116]. - Cash and cash equivalents are valued using quoted market prices in active markets [116]. - The fair value of the warrant liability is determined using quoted market prices for publicly traded warrants and the Black-Scholes pricing model for others [116].