ProMIS Neurosciences (US:PMN)2024-04-01 20:21Financial Performance - ProMIS reported a net loss of $13.2 million for the year ended December 31, 2023, a decrease of 27% from a net loss of $18.1 million in 2022[568]. - The company incurred a net loss of $13.2 million for the year ended December 31, 2023, with an accumulated deficit of $93.5 million[592]. - The net loss for the year ended December 31, 2023, was $13,212,482, compared to a net loss of $18,062,263 for the previous year, representing a 27.5% improvement[630]. - The company reported a net loss attributable to common shareholders of $13,212,482 for 2023, compared to a net loss of $18,062,263 in 2022, reflecting a 26.5% improvement[757]. Operating Expenses - Total operating expenses decreased by $9.1 million, or 39%, from $23.4 million in 2022 to $14.3 million in 2023[580]. - General and administrative expenses decreased by $0.9 million, or 13%, from $7.3 million in 2022 to $6.4 million in 2023[583]. - Research and development expenses decreased by $8.2 million, or 51%, from $16.1 million in 2022 to $7.9 million in 2023, primarily due to reduced spending on the lead program PMN310[581]. - Total operating expenses decreased to $14,262,733 in 2023 from $23,379,912 in 2022, representing a reduction of approximately 39%[624]. - Research and development expenses were $7,883,165 in 2023, down from $16,087,168 in 2022, marking a decrease of about 51%[624]. Cash and Liquidity - Cash reserves as of December 31, 2023, were $12.6 million, which is anticipated to be insufficient to cover operating expenses for at least the next 12 months[571]. - Cash at the end of the year was $12,598,146, an increase from $5,875,796 at the beginning of the year, indicating a net cash increase of $6,722,350[630]. - Cash used in operating activities was $10.8 million for the year ended December 31, 2023, compared to $17.0 million in 2022, reflecting a decrease of $6.2 million[595][596]. - The company has a liquidity risk management strategy that includes continuous monitoring of cash flows and investing excess funds in highly liquid corporate and government bonds[605][607]. Funding and Financing - The company raised $20.4 million in gross proceeds from a private placement in August 2023, which will be used for clinical development and working capital[590]. - The company has an At The Market Offering Agreement to sell up to $25.0 million of Common Shares under a Shelf Registration Statement[591]. - The company entered into an agreement to defer payment on approximately $5.7 million of accounts payable until March 31, 2024, accruing interest at 5.5% per annum[589]. - The company is dependent on future product revenues or additional financing to continue its research and development activities[592]. - The Company will require additional funding to conduct future clinical activities and plans to seek financing through various means[635]. Product Development - The company is focused on advancing its lead product candidate PMN310, which targets toxic misfolded oligomers of amyloid-beta associated with Alzheimer's disease[566]. - ProMIS is also developing additional product candidates, including PMN267 for ALS and PMN442 for synucleinopathies, with ongoing preclinical studies[566]. - The Company is developing three lead product candidates: PMN310 for Alzheimer's disease, PMN267 for ALS, and PMN442 for synucleinopathies[632]. - PMN310 targets toxic, misfolded oligomers of amyloid-beta, while PMN267 selectively recognizes misfolded TDP 43 aggregates[632]. - The Company expects to incur net losses for at least the next several years as it advances its product candidates[636]. Assets and Liabilities - As of December 31, 2023, ProMIS Neurosciences Inc. reported total assets of $13,619,145, a significant increase from $6,924,646 in 2022, reflecting a growth of approximately 96.5%[622]. - Total liabilities rose to $9,865,849 in 2023 from $8,272,418 in 2022, an increase of approximately 19.2%[622]. - The company's accumulated deficit increased to $93,465,946 as of December 31, 2023, compared to $80,253,464 in 2022, reflecting a rise of approximately 16.5%[622]. Shareholder Information - The weighted-average shares outstanding increased to 12,292,707 in 2023 from 7,502,609 in 2022, reflecting an increase of approximately 63.5%[624]. - As of December 31, 2023, the Company had 18,885,254 issued and outstanding Common Shares, an increase from 8,579,284 in 2022[693]. - The total common shares reserved for future issuance increased from 4,480,455 in 2022 to 16,133,820 in 2023[694]. Tax and Regulatory Matters - As of December 31, 2023, the company has approximately $79,816,000 in non-capital income tax loss carry-forwards available to reduce future taxable income[742]. - The company has $2,088,000 of non-refundable investment tax credits available to offset future income taxes, expiring between 2025 and 2035[743]. - The company has not recognized any unrecognized tax benefits since the adoption of ASC 740-10, indicating no liabilities related to uncertain tax positions[672]. Miscellaneous - The company has undergone a change in functional currency from Canadian dollars to US dollars as of July 1, 2023[645]. - The company has not identified any material impairments of long-lived assets as of December 31, 2023[653]. - The company has a wholly-owned U.S. subsidiary, ProMIS Neurosciences (US) Inc., which has had no material activity impacting the consolidated financial statements[633].